Luxury Car Tax

[Malc]

Well well well, this has sure stirred a hornets nest methinks ..........  I'm simply trying to say that those that can afford a " luxury car " know quite well and upfront all that they are going to have to pay to buy and keep their " luxury " steed ... and indeed many people may have more than just the one ........  and quite honestly, when one is in the fortunate financial position of paying for a luxury car it's simply incongruous to whinge and whine about the relatively small add-on costs of that car ....... .  especially knowing upfront what those costs are 

 

Bit like buying a V8 and miserly trying to save and whinge about pennies on fuel costs 

 

Hope you're all having a super Christmastide and looking forward to a good and peaceful, happy New Year and 2022 ....  where I'm sure Rishi will only be taking enough from us all to enable us all and those less fortunate to benefit in some manner or other from the UK Govts tax take

 

Just reading today ........ One might like to think about Donald Trump's Scottish Golf havens benefitting to some considerable extent from UK Govt covid related largesse, furlough schemes whatever ....  now, how could that have been prevented I wonder  .....  a charge on all UK tax payers !

One ( well me anyway )  would have hoped the USA owned Trump benefitting businesses could have been exceptionally excepted from benefitting eh ! 

Best wishes one and all

Malc

[Mossypossy]

Again I stand by what I said in regards my own financial situation.  £40k spend on a car personally is doable, but ruinous financially.

I am probably in the middle ground in terms of wealth. Obvs many cannot even contemplate running a 10 year old Lexus, but then I could not contemplate running a two year old one.

[Guest]

3 hours ago, Mossypossy said:

Again I stand by what I said in regards my own financial situation.  £40k spend on a car personally is doable, but ruinous financially.

I am probably in the middle ground in terms of wealth. Obvs many cannot even contemplate running a 10 year old Lexus, but then I could not contemplate running a two year old one.

Fair comment, But you don’t need to spend £40k to trigger the luxury car tax which is what you were stating and it isn’t foolish if someone wants to buy a car that does fall under that bracket, 

[forbes]

On 12/22/2021 at 10:15 PM, General Mess said:

Good evening all.

Quick question on the luxury car tax on new cars with a list price over £40k. ( applicable from the start of the second licence -currently an additional £335 per year on top of the normal rate for the following 5 years). I have negotiated a deal on the new NX350H with a list price of just under the 40k threshold. I understand Lexus will apply a price increase across the NX range of approximately £1500 from January 2022. The delivery time is estimated for July/August 2022 by which time the new  prices will be in effect.  My understanding is that cars with a list price of over 40k at the time of first registration will be liable for the luxury car tax. So although I will pay less than 40 K for the  car, by the time it is registered next year, the updated  list price will now exceed this figure & so luxury car tax will be automatically applied. Have I interpreted the rules correctly? if so It looks like this extra tax will now be applicable to even the base NX model going forward 😩. Thanks in advance. 

Steve.

Has this post gone slightly off topic, Steve was only asking a simple question which many of us are also wondering about. You order a car that is under 40k list price at time of order which is a fixed price, but before you get the car the manufactures increase the list price to over 40k. Lexus knew full well that the cars wouldn't be registered before the price increase. So you have a car that you ordered and payed for under 40k fixed list price remember. but the government use the new list price. Am I right or wrong 

[serbarry]

4 hours ago, Mossypossy said:

Again I stand by what I said in regards my own financial situation.  £40k spend on a car personally is doable, but ruinous financially.

I am probably in the middle ground in terms of wealth. Obvs many cannot even contemplate running a 10 year old Lexus, but then I could not contemplate running a two year old one.

I am in your same situation as I bought a 2008 GS450H.

[General Mess]

Forbes is spot on. That’s my exact point. Thanks for bringing us back on topic. I appreciate all the previous comments which are well made, but my simple objective  was that I was attempting to avoid the additional expense of incurring the luxury car tax by keeping the list price of a new NX to under 40K. This is possible using the December 2021 price list but any  new NX will be arriving in the UK long after the January 2022 price rise & therefore when first registered will now be above the 40K threshold. This is not made clear by the dealership & like a previous contributor said can catch you unawares if not fully informed. Thanks again for all your responses. 
Steve.👍
 

[steve2006]

I see your point.

In the past car manufactures have done various thing like fitting smaller engines to avoid higher taxes in some countries and reducing emissions if taxes are based on this system.

The problem seems to be that car prices have risen due to material, production and now shipping costs but the threshold for the luxury tax has not. The same can be said for inheritance tax and more recently personal tax allowances which have been frozen.

[Malc]

2 hours ago, steve2006 said:

same can be said for inheritance tax and more recently personal tax allowances which have been frozen.

and the House Purchase tax coming stomping straight back down to £125k any day soon I understand .....  now is a house purchase in the " Luxury " bracket I wonder .  and at what level ?  £1mn in South London might buy one a 2 up 2 down mid Victorian terrace house whereas in much of the country a 2up 2 downer might be a fraction of that price and £1mn buy you a mansion ........  oh and with all the super costs associated there too .  like big heating bills etc 

Maybe I'm trying to audaciously and irreverently compare a yummy V8 running costs to an EV ........ heavily subsidised thus far BUT hey, that's going to get clobbered too any time soon methinks 

I'll just carry on with my super doopa V8 limo of minimal value in the knowledge that as a " new luxury " barge that would be @£100k or so these days .......  oh, and could I afford a brand new one, well, maybe ......   BUT why on earth would anyone want to buy a £40k + car with inherently on-going super tax to pay for many years and be in the sad position of having to moan and moan about it all for those years to come eh !

Everyone and Anyone just get real about one's expectations and only buy what one can readily afford .......  it's only a car and there's far more important stuff in life to worry about than a chunk of metal  ..........  albeit an amazing and wonderful delectable .............. Lexus 

Malc

[Don C]

12 hours ago, Malc said:

and the House Purchase tax coming stomping straight back down to £125k any day soon I understand .....  now is a house purchase in the " Luxury " bracket I wonder .  and at what level ?  £1mn in South London might buy one a 2 up 2 down mid Victorian terrace house whereas in much of the country a 2up 2 downer might be a fraction of that price and £1mn buy you a mansion ........  oh and with all the super costs associated there too .  like big heating bills etc 

Maybe I'm trying to audaciously and irreverently compare a yummy V8 running costs to an EV ........ heavily subsidised thus far BUT hey, that's going to get clobbered too any time soon methinks 

I'll just carry on with my super doopa V8 limo of minimal value in the knowledge that as a " new luxury " barge that would be @£100k or so these days .......  oh, and could I afford a brand new one, well, maybe ......   BUT why on earth would anyone want to buy a £40k + car with inherently on-going super tax to pay for many years and be in the sad position of having to moan and moan about it all for those years to come eh !

Everyone and Anyone just get real about one's expectations and only buy what one can readily afford .......  it's only a car and there's far more important stuff in life to worry about than a chunk of metal  ..........  albeit an amazing and wonderful delectable .............. Lexus 

Malc

So you keep saying.  You don’t have to keep justifying running an old car, we don’t care. 

[Mossypossy]

The Royal we?

All getting a bit partisan here. I'll get me coat.

[Don C]

1 hour ago, Mossypossy said:

The Royal we?

All getting a bit partisan here. I'll get me coat.

Ok, I don’t care.  What I also don’t appreciate is being ridiculed for buying a new car in defence of running an old car.  That’s not you to be clear.  The post is about buying a new NX and the only ones that have expressed a problem with the concept don’t run an NX and have no intention of buying one.  My own situation is, I’m still working, I can afford one and I’ll put up with whatever the tax man does. I’m not unique, many brands breech the 40k threshold.  

[Guest]

18 minutes ago, Don C said:

Ok, I don’t care.  What I also don’t appreciate is being ridiculed for buying a new car in defence of running an old car.  That’s not you to be clear.  The post is about buying a new NX and the only ones that have expressed a problem with the concept don’t run an NX and have no intention of buying one.  My own situation is, I’m still working, I can afford one and I’ll put up with whatever the tax man does. I’m not unique, many brands breech the 40k threshold.  

And if people didn’t pay for “luxury” cars today there would be no old ones for the discerning careful buyer in 15 years time!!

[Malc]

On 12/29/2021 at 11:26 AM, Derant said:

for the discerning careful buyer in 15 years time!!

and if the Lexus quality prevails as with the longevity of the Ls400 .........  well, then the discerning buyer will be picking up amazing current Lexus models in 20 or even 25 years time or more ............ 

BUT from what I'm reading I think it's quite unlikely that any current models will be around in that timeframe as the current cars are all toooooo technical and there's so much electronic wizadry to simply fail ! .........  I hope I'm wrong but reading these forums doesn't instil me with confidence on the longevity of the Lexus current models ...........  except maybe those silly one's costing £500k or more 

Happy New Year to One and All whatever 

Malc

[First_Lexus]

2 hours ago, Malc said:

and if the Lexus quality prevails as with the longevity of the Ls400 .........  well, then the discerning buyer will be picking up amazing current Lexus models in 20 or even 25 years time or more ............ 

BUT from what I'm reading I think it's quite unlikely that any current models will be around in that timeframe as the current cars are all toooooo technical and there's so much electronic wizadry to simply fail ! .........  I hope I'm wrong but reading these forums doesn't instil me with confidence on the longevity of the Lexus current models ...........  except maybe those silly one's costing £500k or more 

Happy New Year to One and All whatever 

Malc

The bigger issue may be whether petrol is still widely available in a few years.

If take up of EVs continues at pace I can see additional Government pressure to reduce the availability of petrol and diesel in order to force the issue. As the range of EVs extends and the charging network expands there will be less need to legislate.

There will likely come a point - maybe in as little as 25 years - where legislation will seek to remove any remaining vehicles powered by traditional fuels. I’ve heard those who say it will never happen, but Government has already started speaking about the future status of ‘historic’ vehicles. Who defines what is ‘historic’ is one issue, but the bigger issue is what happens to those NOT defined as ‘historic…’ I think we all know the answer to that…

“But what (I hear you cry) about those not able to afford an EV.” Simple. If the environment and global heating is as severe as the experts say, and it seems to me like it is, then there will HAVE to be Government investment in public transport or some solution nobody has really thought about yet for those people. Clinging on to the past for social or economic reasons won’t be an option. 

It’s going to be an interesting next hundred years, not that I’ll be around to see most of it! 

[Starlight]

On 12/28/2021 at 11:16 AM, Malc said:

and the House Purchase tax coming stomping straight back down to £125k any day soon I understand .....  now is a house purchase in the " Luxury " bracket I wonder .  and at what level ?  £1mn in South London might buy one a 2 up 2 down mid Victorian terrace house whereas in much of the country a 2up 2 downer might be a fraction of that price and £1mn buy you a mansion ........  oh and with all the super costs associated there too .  like big heating bills etc 

Maybe I'm trying to audaciously and irreverently compare a yummy V8 running costs to an EV ........ heavily subsidised thus far BUT hey, that's going to get clobbered too any time soon methinks 

I'll just carry on with my super doopa V8 limo of minimal value in the knowledge that as a " new luxury " barge that would be @£100k or so these days .......  oh, and could I afford a brand new one, well, maybe ......   BUT why on earth would anyone want to buy a £40k + car with inherently on-going super tax to pay for many years and be in the sad position of having to moan and moan about it all for those years to come eh !

Everyone and Anyone just get real about one's expectations and only buy what one can readily afford .......  it's only a car and there's far more important stuff in life to worry about than a chunk of metal  ..........  albeit an amazing and wonderful delectable .............. Lexus 

Malc

I guess you answered the question in your last 2 paragraph - 'why buy a 40k plus car if you are worried about £30 a month tax', maybe they do!! why not!!. We all worry about a lot of things. By the way, £30 a month tax - super tax - not sure that comes close to any tax I know or pay for - sounds like pure exaggeration.

Most people are not super rich or even wealthy by any means but they spend more than that amount a month on just coffee from Starbucks or Greggs. Not to mention Cigs and Pubs. You and I are not here to manage other people's finances. Everyone to their own.

[Don C]

11 hours ago, Malc said:

and if the Lexus quality prevails as with the longevity of the Ls400 .........  well, then the discerning buyer will be picking up amazing current Lexus models in 20 or even 25 years time or more ............ 

BUT from what I'm reading I think it's quite unlikely that any current models will be around in that timeframe as the current cars are all toooooo technical and there's so much electronic wizadry to simply fail ! .........  I hope I'm wrong but reading these forums doesn't instil me with confidence on the longevity of the Lexus current models ...........  except maybe those silly one's costing £500k or more 

Happy New Year to One and All whatever 

Malc

He said discerning.  You clearly have a vindictive streak that won’t allow you to stop.  

[Malc]

19 hours ago, First_Lexus said:

It’s going to be an interesting next hundred years, not that I’ll be around to see most of it! 

Just thinking ....  can't imagine that much of Africa and Asia and South America will be thinking EV anytime soon.  well, over the next 100 years .  petrol and diesel will surely prevail 

I for one wouldn't want to look for an EV charging point somewhere traversing the Gobi or up the Andes

16 hours ago, Starlight said:

but they spend more than that amount a month on just coffee from Starbucks or Greggs.

OMG you're absolutely right ......  BUT we do tend to use other non-franchised coffee shops too ..  usually prefer the independents, you know, supporting local small businesses whatever ..  being a longstanding member of the FSB inclines me to that way of thinking 

10 hours ago, Don C said:

You clearly have a vindictive streak that won’t allow you to stop.  

never a vindictive streak in me young man ........... never has been, never will be ..........  and I don't usually STOP until the " coast is clear " and seeing sense prevail 

 

Best wishes one and all

Malc

16 hours ago, Starlight said:

You and I are not here to manage other people's finances. Everyone to their own

Absolutely, everyone to their own ...............  Malc