Luxury Car Tax

[panthro]

Am I correct in thinking that because the price includes the EV Gov Grant, that the list price for the standard range+ Model 3 (no upgrades) is actually £42,400 and not £38,900 and thus is liable for the luxury car tax:

"You have to pay an extra £320 a year if you have a car or motorhome with a ‘list price’ (the published price before any discounts) of more than £40,000."

So basically any Model 3 spec will be liable for this tax? Even though at first glance (a price displayed by Tesla under £40k) it seems that you won't have to pay it.

 

[NorfolkMustard]

Correct.
£0 Road tax on purchase
£320 Road tax on 1st anniversary of purchase
£320 Road tax on 2nd anniversary of purchase
£320 Road tax on 3rd anniversary of purchase
£320 Road tax on 4th anniversary of purchase
£320 Road tax on 5th anniversary of purchase
£0 on subsequent anniversaries

 

[theoceanwaves]

Correct all model 3 need to pay luxury road tax unfortunately, bad move by tesla should have split autopilot and premium interior and add the options later after delivery for autopilot

 

[Subevo]

That is. A shock!
Bad bad move by Tesla.
This may put potential buyers off.
I got stung with my model S.
Only 4 more years for me to pay. whats the betting that they move the goalposts again just as it becomes free.

 

[Silicon Desert]

That is. A shock!
Bad bad move by Tesla.
This may put potential buyers off.
I got stung with my model S.
Only 4 more years for me to pay. whats the betting that they move the goalposts again just as it becomes free.

Wow, that is a bummer. I guess this is just a problem for some "out of USA" countries ?

 

[Joshwa201]

Does anyone know if you can order the standard range in the UK?
I might call and then unlock the plus features at a later date

 

[Fellsteruk]

That is. A shock!
Bad bad move by Tesla.
This may put potential buyers off.
I got stung with my model S.
Only 4 more years for me to pay. whats the betting that they move the goalposts again just as it becomes free.

Really? How is that a bad move on Tesla? You expect them to make a loss of £2.5k so that it comes under the 40k so you don’t pay tax?

How about aiming that frustration at our pathetic U.K. government, thy introduced the fee not Tesla!

At the end of the day every car who uses the roads should pay a tax after all your using the roads so why use them for free that said the tax is a total joke and abuse of power by the government when the most polluting car you can buy a 5L mustang is cheaper to tax than a zero emission car like our Tesla.

The reality is that the biggest co2 and no2 producers should be taxed the most to the degree that it deters people from buying them but zero emission cars should still pay a fee but a relative and common sense one rather than what we have to pay today!

 

[Joshwa201]

Really? How is that a bad move on Tesla? You expect them to make a loss of £2.5k so that it comes under the 40k so you don’t pay tax?

How about aiming that frustration at our pathetic U.K. government, thy introduced the fee not Tesla!

At the end of the day every car who uses the roads should pay a tax after all your using the roads so why use them for free that said the tax is a total joke and abuse of power by the government when the most polluting car you can buy a 5L mustang is cheaper to tax than a zero emission car like our Tesla.

The reality is that the biggest co2 and no2 producers should be taxed the most to the degree that it deters people from buying them but zero emission cars should still pay a fee but a relative and common sense one rather than what we have to pay today!

Theres so much they could do. But we have all seen how good our transport secretary is following the brexit preparations

 

[Fellsteruk]

It’s a joke just like the reduction of the Grant, don’t get me wrong I didn’t buy a Tesla because I got a £7.5k Grant in the grand scheme of things on a 90k car it’s not a major incentive but dropping it to 3.5k is poor especially when they stopped hybrids which was the biggest user of it with them stupid outlander phevs and their tiny 30mile range

 

[arg]

The thing that is specifically wrong with the luxury car supplement on road tax is that it's based purely on initial purchase price. EVs are inherently more expensive at initial purchase, but cheaper in running cost, than a comparable ICE. Or to put it another way, for two cars with exactly the same monthly outgoings / total cost of ownership, the EV will have a higher initial price.

So for exactly the same level of luxury, the threshold for an EV should be higher.

 

[Joshwa201]

It’s a joke just like the reduction of the Grant, don’t get me wrong I didn’t buy a Tesla because I got a £7.5k Grant in the grand scheme of things on a 90k car it’s not a major incentive but dropping it to 3.5k is poor especially when they stopped hybrids which was the biggest user of it with them stupid outlander phevs and their tiny 30mile range

Yes, yes, yes! I hear alot of the PHEVs are bought for company car tax reasons and never charged. One would suit me to an extent as we could drive about 50% without turning the engine on.
Then i read up on them, you have to run the engine to heat the car so in the UK thats about 369 days a year.
I know my math.

 

[pjuk]

It’s a joke just like the reduction of the Grant, don’t get me wrong I didn’t buy a Tesla because I got a £7.5k Grant in the grand scheme of things on a 90k car it’s not a major incentive but dropping it to 3.5k is poor especially when they stopped hybrids which was the biggest user of it with them stupid outlander phevs and their tiny 30mile range

My PHEV (Audi A3 e-tron) has suited me perfectly. I'd typically drive into central London, drop the kids of at grandparents en route, drop wife off at work, park up for free in Westminster (+ no congestion charge), had free charging for about 2 years, drive home, pick up the kids and wife...Probably saved about £20 a time on TFL fares + whatever childcare costs were. Even when I wasn't guaranteed to charge in town I could do the trip in both winter and summer on a full battery. Since I didn't (and still don't) have off-street parking it was too much of a risk to go for a full EV. So at the time the £5k grant was a nice incentive and it was a great introduction to EV-life. To date I've done about 70/30% electric/petrol and whenever I get the opportunity to do so I charge the car at home.

Don't get me wrong, there are probably a lot of people who abused the grant/low BIK rates and never even plugged the car in but like myself I'm sure there are a good proportion of them who will put serious thought to getting a proper EV for their next car after driving a PHEV. I just now need to teach my 2 year old that Daddy's new car won't go "vroom vroom" anymore.

Yes, yes, yes! I hear alot of the PHEVs are bought for company car tax reasons and never charged. One would suit me to an extent as we could drive about 50% without turning the engine on.
Then i read up on them, you have to run the engine to heat the car so in the UK thats about 369 days a year.
I know my math.

Nope...I can quite happily run down my battery by sitting in the car cooling to 10ºC or keeping warm and toasty at 30°C With only 8kW I'd rather wear a warm coat and hat or wind down the windows/sunroof.

 

[LukeT]

The thing that is specifically wrong with the luxury car supplement on road tax is that it's based purely on initial purchase price. EVs are inherently more expensive at initial purchase, but cheaper in running cost, than a comparable ICE. Or to put it another way, for two cars with exactly the same monthly outgoings / total cost of ownership, the EV will have a higher initial price.

So for exactly the same level of luxury, the threshold for an EV should be higher.

This!

So many over-simplifications based on folk failing to grasp that the buy price is only one variable in the cost of car travel.

 

[Singer3000]

I was worried this would happen when they bundled Autopilot in with the price. I just don't think anyone at Tesla is really on the ball enough to think about these things properly.

 

[WannabeOwner]

A bunch of people able to afford a Tesla whinging about having to pay some tax. And apparently its Tesla's fault.

No doubt you expect free charging here and there too ...

... and also evade tax by paying your plumber etc. in cash

 

[vitesse]

Could you order without AP and then purchase after delivery?

 

[WannabeOwner]

Could you order without AP and then purchase after delivery?

Basic AP is now included in all models (from memory price increased £3K according, which I think was a £2K discount), and then on top of that FSD is a £5K option.

It has always cost more to add options such as AP later ... except that Tesla periodically hold a fire-sale and discount the post-delivery purchase of such options.

 

[Fellsteruk]

sigh......

 

[vitesse]

I don't get the Model 3 anyway so went for a used Model S instead.

I see that in Canada Tesla had specced a tax-busting low capacity battery option. Looks like not enough thinking about option pricing for the UK has been done.

 

[theoceanwaves]

what annoys me is that Tesla sales advisors are still saying the base SR plus model in under the threshold for luxury car tax which is misleading.