Luxury Car Tax RIP - Budget 2020

[~Tony]

If by “he” you mean me, then no. I’m paying cash. When I ordered and said I was paying cash I was asked to provide my registration address and photos of my driving licence, which were uploaded. That’s what I meant about online documents.

Thanks for clarifying. I was understanding that more was needed - something to do with staring at a page that talked about completing my info - for far too long. I now have, today, the final invoice and Tesla never did need me to complete further info...

or was I just imagining the complete further info bit ???

 

[Jason71]

It seems ambiguous if the exemption from luxury car tax is until the 31st March 2025 OR for vehicles registered up until the 31st of March 2025

if its the former ( and I think it is) Do we all need to do is to SORN our vehicles on 1st April 2020 and re-buy. this will bring forward the start of the tax to 1st of April 2020 so by the time the exemption runs out in 2025 we will all have burned through our 5 year payment period.
i.e. currently the tax will be payable on my car from the second licence due in November 2020 for 5 years so up until November 2025.
So the last licence that it applies to will be bought in November 2024 and run to November 2025. So on that licence will they charge me for the period April 2025 onwards? or will it all be zero because I bought it before April 2025?
I don't know but if I sorn it and re-tax on April 1st it will bring the end date of the tax back to April 25 which means I am covered either way.

replying to my own post here. I checked with someone in the know and this exemption is definitely based on registration date not licence date so from the 1st of April this year all EV's registered between April 2017 and end of March 2025 will pay no Luxury car tax ever even after 2025. So assuming no later change to this, never say never, get your orders in by 2025!
I noticed there is a consultation document just published on overhauling VED anyway so I would not be surprised if luxury car tax goes away or gets changed before then anyway. Regressive cliff edge taxes are really dumb if you want to tax expensive cars fine. I mean we already do its called VAT. but if you want to do it more fine at least make it a sliding scale so a 40K car does not pay the same as a Ferrari.

 

[culverwood]

So us early adopters miss out?

 

[Jason71]

So us early adopters miss out?

how so? if you mean cars registered before 6th April 2017 you were never eligible to pay the tax in the first place so it does not affect you one way or the other.

 

[LukeT]

I would say that tonight is a bad night to order.

Too late to save the £3500 grant - as Tesla need to request your details and you have to fill it in - for you, as a specific customer, to have a 'contract' with Tesla and they can apply for the grant on that car.

And too soon for Elon to make any price tweaks eg making something 'optional' to bring the baseprice (+ Number Plates, say £25) below £50,000

However feel free to use my Referral link if you wish

Is there another tax impact of car price over £50k?

 

[Jason71]

Is there another tax impact of car price over £50k?

no just the loss of the £3500 PICG.

 

[Harv3y]

no just the loss of the £3500 PICG.

Just spoke to Tesla on the phone and he implied that if you ordered last night you would be okay and get the OLEV grant.

 

[culverwood]

how so? if you mean cars registered before 6th April 2017 you were never eligible to pay the tax in the first place so it does not affect you one way or the other.

Thanks. It is all a bit complicated for me.

 

[SamBGB]

So I was re-quoted for the LR today and I have seen an increase of £2988 over the course of the 36 month term.

Not sure how the recent price changes for the LR to bring it under the 50k and the VED savings how they can add an additional £2988 to the lease.

I am having them check with their pricing team as that seems off to me.

 

[Durzel]

So I was re-quoted for the LR today and I have seen an increase of £2988 over the course of the 36 month term.

Not sure how the recent price changes for the LR to bring it under the 50k and the VED savings how they can add an additional £2988 to the lease.

I am having them check with their pricing team as that seems off to me.

Definitely off. LR is the only model that actually went down in price. Tesla absorbed the £500 loss to them from the PICG grant reduction (and another £10 to get it under £50k so it would still qualify). Also, there is no luxury VED on the car anymore either, which the lease company would have to pay.

I'd expect the quote to go down, not up.

 

[SamBGB]

Definitely off. LR is the only model that actually went down in price. Tesla absorbed the £500 loss to them from the PICG grant reduction (and another £10 to get it under £50k so it would still qualify). Also, there is no luxury VED on the car anymore either, which the lease company would have to pay.

I'd expect the quote to go down, not up.

My thoughts exactly, I've told them they need to go back and do their sums so they are checking with their pricing team.

 

[Jason71]

Definitely off. LR is the only model that actually went down in price. Tesla absorbed the £500 loss to them from the PICG grant (and another £10 to get it under £50k). Also, there is no luxury VED on the car anymore either, which the lease company would have to pay.

I'd expect the quote to go down, not up.

the grant went down by £500 so in real terms the car only went down by £10 but the Luxury tax went down by £325 in years 2-5 so the total cost went down about £660 over 3 years so any increase seems wrong should be a decrease unless there are other factors involved we don't know about

 

[Durzel]

Yup, at worst it should remain the same. No reason it should go up, and especially not an extra £2988!

 

[SamBGB]

Just had a response that mentions the pricing changes from Tesla but they don't mention the VED savings so I have schooled them on that as well to make sure they take that into account.

---

Having checked with the pricing team. As you rightly mentioned the LR has been reduced by Tesla to off set against the grant.

This pricing change wont take affect on our system for a few weeks as we have to wait for it to filter though from Tesla.

Best thing to do is give it a few weeks and once it updated we can get an up to date quote on the new pricing.​

---

 

[SamBGB]

btw I just noticed they also increased the initial rental by £1000 so in total the price went up by £3988

 

[WannabeOwner]

I've told them they need to go back and do their sums so they are checking with their pricing team.

In case you are having another go at them! you could also mention that the BOE Interest Base Rate has done down too ...

 

[Durzel]

At least there's no real harm in waiting a few weeks to get a quote, since there aren't going to be any cars until June anyway.

I bet price rises have an effect pretty damn quickly...

 

[SamBGB]

At least there's no real harm in waiting a few weeks to get a quote, since there aren't going to be any cars until June anyway.

I bet price rises have an effect pretty damn quickly...

Yeah I don't mind waiting, I do mind when it seems like they are either flat out pricing wrongly or trying to pull a fast one. On this occasion as there has been no notification about the changes regarding the budget and then Teslas quick price change it I will put it down to a mistake.

 

[Jason71]

Yeah I don't mind waiting, I do mind when it seems like they are either flat out pricing wrongly or trying to pull a fast one. On this occasion as there has been no notification about the changes regarding the budget and then Teslas quick price change it I will put it down to a mistake.

sounds like they have priced in the removal of the grant (and then some) based on the old LR price but "forgotten" to price in the VED change.

 

[SamBGB]

sounds like they have priced in the removal of the grant (and then some) based on the old LR price but "forgotten" to price in the VED change.

Thats what it looked like to me too.

I've "informed" them about the price changes as Tesla to bring the care under the 50k threshold and that VED changes, so I will see what they come back within in a couple of weeks. I assume they want to wait until the new tax year is in effect although they could price it up now, not sure why they need to wait a few weeks. I am pretty sure the Tesla ordering system for them already reflects the new price.