What Are The New Car Tax Rules?
There’s a big change looming in the way lots of drivers are charged vehicle excise duty (VED, or ‘road tax’). VED-day, if you like, is 1st April 2017, and after this date, the owner of any new car taking to the road will be charged in a completely different way.
But there’s good news if you’re planning to buy a used car – even after this date, the amount you’ll pay in road tax will stay the same as it would’ve been if you’d bought earlier. Only new cars registered from 1st April 2017 will be liable for the new rates.
Yes, if you’re planning to take your pick from the vast array of used car choices on offer out there, not least from us at Fords of Winsford, you’ll avoid the ‘hit’ of the hefty new VED charges altogether.
Buying Used? It’s Business As Usual
We’ve found that many customers are confused about the changes, often believing that they will add to the price of any used car – but that isn’t true, as any car already registered after March 2001 and before before 1 April 2017 is still taxed under the old system of emissions-based VED bands.
It hasn’t helped that nearly all of the media coverage given to the new VED system has assumed that buyers will automatically be looking exclusively at a brand new car when they come to trade in their present one. This has seen wide publicity given to the worst-case scenarios which would see someone buying a brand new car facing a charge of up to £2,310 in the first year of ownership.
Plugging A Gap
At the heart of the issue – and the reason which some commentators believe has driven the government to target new car owners – is that the current system has seen it lose millions of pounds (some put the figure at £80million) in income through people choosing cars with lower CO2 emissions which are therefore either eligible for lower rates of VED, or are exempt from it altogether.
Of course, no one can be forced to buy a car purely on the basis of its CO2 emissions alone – but it’s become a factor considered by increasing numbers of buyers alongside many others when they buy their next car.
And if you can pick a car which means you avoid paying road tax altogether, or cut what you’d been paying previously by a couple of hundred pounds a year – then why wouldn’t you give it some serious thought?
But this has ignored the thousands of people who prefer not to be limited by the choice of new cars and a wait of several months to order the latest model. These sensible folk would rather pick from the vast choice of used cars out there, on which they can then get a competitive car finance deal, and drive away within a couple of days with the peace of mind their new car has been workshop inspected, re-cleaned and given a clean bill of health for any outstanding finance by means of an HPI register check.
Coverage Overlooks Used Car Buyers
They’re the customers we see in their droves at our two sites in Winsford and opposite the Trafford Centre in Manchester. They’re happy to trust Fords of Winsford as the source of their next car, because they know we take great care to source cars which will offer peace of mind comparable with that they’d get from a new car.
When you buy a used car from Fords of Winsford, not only do you avoid the extra expense now involved in taxing nearly all new cars – but you also don’t necessarily need to wait around, possibly for several months, to take delivery of the exact car you want.
More Car – For The Same Money
You could even find that a car of a higher spec than you’d be able to consider new is within your budget as a used buy – meaning that you get all the lovely extras you want, maybe air-con, leather seats or a top-line infotainment system – but at a much lower price.
This is largely because of that dread of new car owners – depreciation. Every single mass-market car loses a significant portion of its original value in the first three years of its life – typically 50 to 60 per cent of the original purchase price. After this, the rate at which its value drops starts to level off, and continues to do so for the rest of its life. So over the next three to four years, you should get a high proportion of what you paid for the car back when you trade it in. So there’s another great reason for you to buy used – you can let someone else shoulder the main burden of this inescapable fact of life, and pick up a genuinely great used car deal.
You can bag yourself even more peace of mind by taking out an FoW Gold extended warranty, which will give you valuable cover against the cost of a wide variety of unforeseen mechanical or electrical failures. Chosen for the wide scope of the cover it offers, it’s the next best thing to having a full manufacturer’s warranty still in place on your car.
The new rules on VED have changed the balance of many people’s calculations when they’re weighing up whether to buy their next car new or used.
Spend On The Extras You Really Need – Not On Car Tax!
Only those who plump for a new car with 0g/km emissions will escape having to pay at least an extra £150 – and potentially as much as £2,000 – for the pleasure of owning a car with the latest reg plate, which is likely to lose about half of its original value in the first three years of its life.
When you buy a Fords of Winsford used car, though, while road tax and depreciation will still be factors to consider, you’re spared that big financial hit at the start of your ownership. So instead of putting that money into the Government’s pockets in the form of VED, wouldn’t it be much better to seriously consider buying a used car, where your money will go further, and you might even get a much higher spec of car than you ever thought?
So do the sums for yourself: A used car from Fords of Winsford = no first-year financial hit + lower depreciation + buying from a company people trust. If that all adds up to you, then come and see us, in Winsford or opposite the Trafford Centre, and we’ll be happy to help you make your money go further on a car you really want.
Don’t let the new VED rules take the shine off your next car – when you buy from Fords of Winsford, you’ll be charged under the old system for your car tax and escape that hefty first-year hit! You’ll also get the assurance of a wide choice of makes and models – including a good selection which cost nothing to tax. So browse our wide used car stocks, then come and see us, in Winsford or opposite the Trafford Centre, soon.