Chances of delivery cost being reduced?

[xdcthedoc]

So I am one of those tight gits who is completely put off my dream car (model 3) just because of the luxury car tax nonsense.

Without getting into arguments about how fair it is / whether it should make much difference with a purchase this large....

I am basically ready to order the minute we can buy a Model 3 for less than £40k and avoid this tax. There was vague rumours that Tesla might look at how they deal with the delivery charge that is scuppering it... in particular talk about reducing the charge from September onwards was floating about.

Here we are in September and no news.

Is anyone else in the same poised to buy position but holding out?

 

[kevuwk]

I originally started looking as it appeared under £40k until you read the small print. I eventually decided that £320 a year wasn't going to change things that much and have since changed to a higher spec as well

 

[Jason71]

So I am one of those tight gits who is completely put off my dream car (model 3) just because of the luxury car tax nonsense.

Without getting into arguments about how fair it is / whether it should make much difference with a purchase this large....

I am basically ready to order the minute we can buy a Model 3 for less than £40k and avoid this tax. There was vague rumours that Tesla might look at how they deal with the delivery charge that is scuppering it... in particular talk about reducing the charge from September onwards was floating about.

Here we are in September and no news.

Is anyone else in the same poised to buy position but holding out?

There is talk of the EU dropping the 10% import duty on US cars (maybe by the end of the year) and its also a possibility in a no deal Brexit. That might be your best hope. It is annoying though. So near and yet so far. Maybe they could just make one of the wheels a dealer fitted cost option?

 

[Rooster6655]

So I am one of those tight gits who is completely put off my dream car (model 3) just because of the luxury car tax nonsense.

Without getting into arguments about how fair it is / whether it should make much difference with a purchase this large....

I am basically ready to order the minute we can buy a Model 3 for less than £40k and avoid this tax. There was vague rumours that Tesla might look at how they deal with the delivery charge that is scuppering it... in particular talk about reducing the charge from September onwards was floating about.

Here we are in September and no news.

Is anyone else in the same poised to buy position but holding out?

I believe that the price is what it is to encourage the purchase of the higher priced models, if they had really wanted to encourage the saving they would have and could have in many ways that actually brought them more income instead of it going to the luxury car tax.

 

[ProfessorK]

Or just lease it because the leasing company pays for tax.

 

[AndrewR]

Tax is £320 a year for 5 years, so £1600 total. I understand this is more than £0, but you are talking about dropping £40k on a car and concerned about £1600 (4%) but not the £20k (50%) depreciation that you'll take?

Also with the way the UK government is at the moment, I wouldn't be expecting any tax breaks unless you are a multi-millionaire with your cash held offshore

 

[MaDProFF]

I don't agree with it, I think it is the older cars that should be taxed more. But if you want something then so be it, and let's face it chances are they will start taxing cars more sooner than later, so you might be kicking yourself later on.

 

[xdcthedoc]

Tax is £320 a year for 5 years, so £1600 total. I understand this is more than £0, but you are talking about dropping £40k on a car and concerned about £1600 (4%) but not the £20k (50%) depreciation that you'll take?

Also with the way the UK government is at the moment, I wouldn't be expecting any tax breaks unless you are a multi-millionaire with your cash held offshore

Yeah... but i said "Without getting into arguments about how fair it is / whether it should make much difference with a purchase this large...."

I see your point of view - but depreciation is fixed... this tax seems arbitrary and annoys me on multiple levels - philosophical as well as material.

I just wondered if there were many other hold outs.

 

[xdcthedoc]

I believe that the price is what it is to encourage the purchase of the higher priced models, if they had really wanted to encourage the saving they would have and could have in many ways that actually brought them more income instead of it going to the luxury car tax.

Perfectly plausible - but it involves some intention on the behalf of Tesla and I was more in the camp that thought this was a bit of confusion and over sight on their part rather than a clever way to extract money.

Bringing it under the threshold could potentially boost orders very significantly.... especially if fleet buyers are put off by the cliff edge tax hike... just wondering if that is important to Tesla or not.

 

[curmudgeon]

So, the Government gives EV drivers a £3,500 plug in grant and then takes £1,600 back over 5 years. That looks like a pretty sweet deal to me.

 

[AndrewR]

especially if fleet buyers are put off by the cliff edge tax hike.

I don't see £320 a year on the cost of running a car to be that excessive compared to VAT on the vehicle, VAT on electricity, depreciation, insurance, maintenance etc.

Personally I don't see it going away, as more move to EV fuel tax revenues will drop and the government will need to come up with a new and innovative way of screwing over the British motorist.

I don't agree with it, but it's the price we pay

 

[curmudgeon]

VAT on domestic electricity is charged at just 5%.
Petrol duty is 57.95p per litre. And VAT is charged at 20% on the petrol as well.

A Petrol or diesel car will cost far more in tax every month than the EV luxury tax. And that's without the petrol car's VED.

 

[Jason71]

Or just lease it because the leasing company pays for tax.

I've seen a few people say this but you know its not actually true right?
The lease company physically pays it sure but the money comes from your lease payments. if there was no tax then the lease would be about £30 per month cheaper.

 

[AndrewR]

VAT on domestic electricity is charged at just 5%.
Petrol duty is 57.95p per litre. And VAT is charged at 20% on the petrol as well.

A Petrol or diesel car will cost far more in tax every month than the EV luxury tax. And that's without the petrol car's VED.

That's the point I was trying to make

 

[Durzel]

Yeah... but i said "Without getting into arguments about how fair it is / whether it should make much difference with a purchase this large...."

I see your point of view - but depreciation is fixed... this tax seems arbitrary and annoys me on multiple levels - philosophical as well as material.

I just wondered if there were many other hold outs.

I get your philosophical argument, it seems weird that it's levied on EV cars at all given the Govt is trying (weakly) to push people towards EV takeup.

That being said, the solution for you is to lease it - then you might as well be oblivious to the cost.

 

[Rooster6655]

Bringing it under the threshold could potentially boost orders very significantly.... especially if fleet buyers are put off by the cliff edge tax hike... just wondering if that is important to Tesla or not.

Yes but no incentive for the UK market right now whilst their order book is at max capacity and the SR+ being the least profitable variant.