Luxury car tax rip of

My maths is usually wobbly, but the tax @ £400-ish is 1% of the purchase price of £40k, no?

If I could afford £40k for a new vehicle, a 1% tax sounds like small change to me.

£400 is a lot of dosh in our household and the chances of affording a £40k vehicle is a case of “dream on, missus”… 😂🙃

All purchases are relative to an individual’s financial situation 🤷‍♀️
 
mariesnowgoose said:
My maths is usually wobbly, but the tax @ £400-ish is 1% of the purchase price of £40k, no?

If I could afford £40k for a new vehicle, a 1% tax sounds like small change to me.

£400 is a lot of dosh in our household and the chances of affording a £40k vehicle is a case of “dream on, missus”… 😂🙃

All purchases are relative to an individual’s financial situation 🤷‍♀️
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Which is how it should be really. I doubt many people will sympathise with Bills "whinge" 😁
 
mariesnowgoose said:
My maths is usually wobbly, but the tax @ £400-ish is 1% of the purchase price of £40k, no?

If I could afford £40k for a new vehicle, a 1% tax sounds like small change to me.

£400 is a lot of dosh in our household and the chances of affording a £40k vehicle is a case of “dream on, missus”… 😂🙃

All purchases are relative to an individual’s financial situation 🤷‍♀️
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Oh well Marie.

91% of new cars bought in the U.K. are bought on finance.
Most households don’t have the capital required to buy a new car or indeed many used cars.

My main complaint is the fact that whereas the amount of the payment has increased from £250 in 2017 when it was introduced to the current £425 the threshold has remained the same. This means that EVs with an average price of £46,000 costing £6000 less than the average price classed as Luxury. That’s surely wrong.
I would have no complaint if the threshold was treated the same as the payment applied and increased with inflation.
Also Marie, this does not affect me, I am not on here putting these issues forward for my own benefit.
My new (pre registered) car which I bought this year was a Subaru Crosstrek touring model, with a list price below £40,000. This does not affect me personally in any way. But I simply feel it’s an unfair tax. Also Marie if you bought an Aston Martin for £250,000 you would pay the same £425 as someone buying a “luxury” car with a list price of £40,000. Also it’s £425 for five years that’s £2250 over 5% Marie.
 
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Fisherman said:
Oh well Marie.

91% of new cars bought in the U.K. are bought on finance.
Most households don’t have the capital required to buy a new car or indeed many used cars.

My main complaint is the fact that whereas the amount of the payment has increased from £250 in 2017 when it was introduced to the current £425 the threshold has remained the same. This means that EVs with an average price of £46,000 costing £6000 less than the average price classed as Luxury. That’s surely wrong.
I would have no complaint if the threshold was treated the same as the payment applied and increased with inflation.
Also Marie, this does not affect me, I am not on here putting these issues forward for my own benefit.
My new car which I bought this year was a Subaru Crosstrek touring model, with a list price below £40,000. This does not affect me personally in any way. But I simply feel it’s an unfair tax. Also Marie if you bought an Aston Martin for £250,000 you would pay the same £425 as someone buying a “luxury” car with a list price of £40,000.
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Sounds a bargain Bill.

You've just talked me into buying an Aston Martin to save some money! :D
 
Robmac said:
Joking aside, isn't this under government review at the moment?
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It should be Rob.
What happened to road tax being based on pollution, this tax has nout to do with this.
I am not against people paying a bit more when buying LUXURY cars, but not cars that are six grand below the average price in the case of an EV.
And try buying a new LUXURY car for less than forty grand. Of course that depends on what is luxury.
One mans Fiesta being another mans S class Merc.

What brought this to my attention was a mate who bought a new Volvo and new nothing about this tax.
OK he should have possibly checked things out.
When his road tax renewal came through the door he was expecting a bill for £190, instead it was £615.
I was lucky it could have been me.
I was fortunate I bought a pre regi Crosstrek with a list price below the threshold.
Because some folk can afford to pay this tax, does not make it right, or fair, well not in my book anyway.
One of my reasons for posting this was to forewarn anyone on here who was thinking of buying such a car.
 
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Fisherman said:
I am not affected by this tax Barry.
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Just a bit of fun Bill. 😁

I still agree with Marie though but it's interesting your quote about cars being bought on finance. Shocking in fact. I saw some stats the other day as well that were equally shocking where those buying luxury or status symbol cars had either no savings or less than £10k to their name. All on finance. I have no sympathy for them either. Never bought anything on finance in my life and never will.

If you can't afford it don't buy it. Some people in the UK are obsessed with wealth though or at least giving the impression they have it.
 
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