ALL Model 3s still have to pay Luxury Car Tax

[Jason71]

There are quite a few people today thinking that with the new prices if they change their SR+ order to White (£36,490) that that means they will be under the threshold for additional rate VED i.e. luxury car tax.
I am pretty sure they are wrong.
we already know that the £3500 gov grant has to be added so the real price list price is £39,990.
but sadly that is not all. DVLA rules on calculating the list price say that it includes:

• Manufacturers Recommended Retail Price
• The price of any non-standard option fitted by the manufacturer
• VAT
• Delivery charges inc. pre delivery inspection charges

So even if you don't add a paid colour or a tow bar the £850 delivery charge will push you over the £40K limit

rules can be found here: http://dvla.dft.gov.uk/ved/ved-reform-briefing2.pdf
but they seem pretty clear to me.
Sorry

 

[IanB]

Yes, I must say I got a little excited and got to the end to see it was pushed over 40k still due to the doc and delivery fee which they do take into account, they need to drop it a little further for me

 

[Peteski]

Makes you wonder if Tesla might drop the price yet again at some point to creep it under the threshold as it ought to push quite a few extra sales. Or maybe just release the non-plus SR for that purpose.

 

[Jason71]

Makes you wonder if Tesla might drop the price yet again at some point to creep it under the threshold as it ought to push quite a few extra sales. Or maybe just release the non-plus SR for that purpose.

It does and if they do it will screw over the re-sale on the current SR+ by the price reduction + the ART saving.
Those who already took delivery of an SR+ are probably relieved right now that the current price drop did not take the car under the threshold!

 

[dan223]

It does and if they do it will screw over the re-sale on the current SR+ by the price reduction + the ART saving.
Those who already took delivery of an SR+ are probably relieved right now that the current price drop did not take the car under the threshold!

Exactly what I am worried about, tempted to save 2k and get the white, but then if a year down the line it drops again and is under the tax then someones going to buy that car over mine.. If i get the red I doubt its going to drop enough to cover that to.

 

[Jason71]

Exactly what I am worried about, tempted to save 2k and get the white, but then if a year down the line it drops again and is under the tax then someones going to buy that car over mine.. If i get the red I doubt its going to drop enough to cover that to.

Alternatively the changes to company car tax might lead to a massive increase in demand or exchange rates might collapse due to Brexit and the price may go up. Then you are quids in. Swings and roundabouts.

 

[Peteski]

All you can conclude is that Tesla are not pricing with uk luxury tax in mind! At least not now.

 

[6502]

Actually I think it can hardly be coincidence that £39,990 just slips under £40k.
I agree the document Jason71 linked appears clear that the £850 should also be included, but the spot-on nature of the white SR+ pricing suggests that Tesla believe otherwise. Hopefully for good reasons which turn out to be true.

 

[Peteski]

Actually I think it can hardly be coincidence that £39,990 just slips under £40k.
I agree the document Jason71 linked appears clear that the £850 should also be included, but the spot-on nature of the white SR+ pricing suggests that Tesla believe otherwise. Hopefully for good reasons which turn out to be true.

Nah, I think it's coincidence. None of the other specs are priced at a round number. If it was intended to slip under the tax, then they didn't do their homework anyway as it still doesn't qualify.

 

[cizUK]

Actually I think it can hardly be coincidence that £39,990 just slips under £40k.
I agree the document Jason71 linked appears clear that the £850 should also be included, but the spot-on nature of the white SR+ pricing suggests that Tesla believe otherwise. Hopefully for good reasons which turn out to be true.

Hopefully we're due an £850 price cut soon...

 

[WannabeOwner]

All you can conclude is that Tesla are not pricing with uk luxury tax in mind! At least not now.

Not Tesla's job to achieve that (unless it makes no difference to them). Need to kick government on that one for coming up with one-size-that-does-not-fit-all

I think it can hardly be coincidence that £39,990 just slips under £40k.

I expect it is just the old "39999 feels less than 40000 ..."

 

[Rooster6655]

This whole thing reminds me of the Nisan Leaf when you add Pro Pilot it goes over the 40k limit.

 

[cizUK]

I expect it is just the old "39999 feels less than 40000

No, because to the customer it's £36,490 or £37,340

 

[goRt]

It's still not the luxury car tax!
You get a 3.5k grant and 500 for a charge point. Be careful what you ask for - look at the WASPI women, they got what they asked for!

 

[Fionalcarney]

I’m actually pleased to see this bizarrely enough

I hate the wooden strip on the black interior and planning to go white interior for that reason. £950 is already a fair bit just to get rid of the wood, but if it would also push it over the 40k then the real cost would be £2,550 which is crazy really just for a bit of wood but it’s right there in front of you so would be such a difficult choice. If the doc fee already pushes it over then I don’t need to stress it so much

 

[Roy W.]

I’m actually pleased to see this bizarrely enough

I hate the wooden strip on the black interior and planning to go white interior for that reason. £950 is already a fair bit just to get rid of the wood, but if it would also push it over the 40k then the real cost would be £2,550 which is crazy really just for a bit of wood but it’s right there in front of you so would be such a difficult choice. If the doc fee already pushes it over then I don’t need to stress it so much

If you only hate the wood strip and you’re not too bothered about the white seats, another option would be to get a wrap to apply onto the wood. Lots are available, white, carbon fibre, black etc.
I love the white seats, so I’m going with white

If you’ve not ordered yet, be sure to use someone’s referral code. It gives them and you some free supercharger miles. Referral codes can be found on the Profile page under Information!

 

[Durzel]

Are there really people who would hold off buying a £40k car because it's going to cost them an extra £1280 over the next 5 years (it's £320 a year for years 2-5), assuming they even keep it that long?

I mean, it's dumb that it applies to EV cars, given the grant and home charging subsidy exists, and a general policy of encouraging EV take-up, but at the same time - it's £40k+ minimum to buy. Anyone who can afford that isn't really in the "looking for a run about" market.

 

[Peteski]

Are there really people who would hold off buying a £40k car because it's going to cost them an extra £1280 over the next 5 years (it's £320 a year for years 2-5), assuming they even keep it that long?

I think it's more a case of if one manufacturer deliberately prices their car just under £40k and another direct competitor prices just over £40k, then the former suddenly looks more price competitive. But I haven't seen much evidence of this tactic at play. Most manufacturers seem to have largely ignored this tax point, probably because their margins are so slim to start with. Tesla clearly don't care about it either at this point and as they have virtually no direct competition there is little incentive for them to do it.

 

[Durzel]

Well that's the thing, if you want a Tesla it's because you want a Tesla. The price is largely a secondary consideration, as in you're unlikely to buy "not a Tesla" for less.

If anything the fact that it appears like it's under the threshold, but isn't when you factor in the doc & delivery fee, is a bit galling really. Wouldn't make any difference to me as I was looking to get the Performance one anyway, but I can imagine it would annoy some people who are just looking to get the cheapest Model 3 they can.

 

[tess19]

I would disagree that "Tesla clearly don't care about it either at this point and as they have virtually no direct competition there is little incentive for them to do it." If they don't care, they would not have reduced the price so soon and by such a large amount. If they wanted to encourage white uptake, they could have offered 50% off white rather than have a fire sale throughout the range.