1 Basic Optional Extra Can Add £3k+ To An Electric Car!

The VED/Car Tax rules are changing in a couple of weeks. If you're buying a new EV, then don't get caught out if it's this close.

#moneysavingtips #electriccar #cars

[AdamAugustPhoto]

I figured out the other day that if the ECS had tracked inflation, it would be at £52, 400 now. Still doesn't quite strike me at 'luxury' level money for a car these days, but a lot more palatable than £40k

[edwyncorteen]

New over £40, 000 EVs after 1st April will only pay £10 for the first year, from year 2 they pay £195 plus the luxury car tax for five years. New EVs under £40, 000 pay £10 year 1 and £195 every year subsequently.

[SNORKYMEDIA]

Dont forget to re-tax your EV this month to give you another year free....

[Sparky]

It's way too low, luxury car tax should start around £80, 000 and needs to rise with inflation.
It's ridiculous that you can spec a Vauxhall Astra in the luxury car tax bracket.

[robsengahay]

Expat living in Australia here. We have a luxury tax bracket here. A tax levy of a staggering 33% added to the purchase price when you buy the car for every $ above the threshold.

However it is adjusted for inflation each year and EVs have a higher threshold currently $91, 387 or about £45, 000 on current exchange rates.

A standard model 3 here is much cheaper than in the UK at $54, 900 or about £27, 000. That’s a staggering price difference so all the Teslas are comfortably under that.

[Singlej]

Rachel Reeves, are you reading? How about a tiered system, much like income tax. You can have different rates for different tiers of RRP. Shall we open the bidding at 25k, 45k, 65k? You could have lower rates for the lower tiers, to incentivise manufacturers to make cheaper cars. You could even add an extra EV allowance as they are more expensive to manufacture and better for the environment, let’s say 10k, so that a “cheap” EV would be up to 35k (25+10), etc.
Seems sensible to me, so no way they’ll implement it.

[Manoharan]

Electric car manufacturers selling their car above £40k should sell their cars without the battery as standard. Once Kind of flinstone style. Once people register and get their car, people need to buy battery separately and get it fixed. This way everyone can avoid luxury tax 😂

[kinross]

Actually, From 1 April 2025, the standard VED rate for all cars will be £195 per year after the first year of ownership. Cars with a list price of more than £40, 000 will pay an additional £425 from years two to six, a total of £620 a year, or £3100 over six years.

[davidjohn]

How is this encouraging people to move to EV's with little or no emissions? Is the government really serious on climate change? I can see this tax hitting car sales. I think there could be a lot of bargains on cars coming very soon. One of the best videos out there explain this Tax

[keithdenton]

I just TAXed my Tesla for a year. It runs out in September but I got a year free from March 2025 to March 2026 This will save me £113.75

[Andrew.Prince]

Thanks for the clarification, as you said lots of misinformation out there.

[jonnya]

The worst part is a car at £40, 250 RRP with a £300 discount.

[rv_x]

Even though a £40K car cannot be classified as a luxury car, this will prompt manufacturers to drop the prices of their existing models just below £40K to make them more sellable.

[lordstevewilson]

I went for top of the range 2016 outlander phev, instead of 2020 because of road tax. I mean I'm saving £175 a year.

[MrKlawUK]

Been there, done that. Added privacy glass to a BMW 4 series - £300 to help it look nicer and reduce glare for my kids. Boom - luxury VED for 4 years. of course the dealer didn’t say a damn word and I’ve not bought from that dealer since.

its a bit silly that an optional extra on top of list price triggers it - but if they discount the car below list price the list price is the one that counts. Basically stacking the deck in favour of getting more tax.

[yr]

Lol the new drag effecting EVs - fiscal drag!

[Jawlf]

Exactly, if you buy a car ensure the RRP is not above that magical £40k, not what you pay for it.
Also with the Tesla, if you wanted to get Enhanced Autopilot, do not otder it with it, add as an option after you have purchased it!

[johnnodge]

I've no problem with paying VED for a vehicle. What is a bit unfair, is an EV is going to be more expensive that many small engine ICE vehicles. If EVs are going to have a VED of £195, then all ICE vehicles should start at that taxation rate. Just for reference, we have an EV which will be effected from April, but we also have a current zero tax ICE, and a £190 PA diesel too.
And no, a car of £40k can't be considered a luxury car now, considered there has been 12 years of inflation since it was introduced.

[rhyslatham]

I am so pleased that I can pay more in VED so that our roads can be maintained to the exceptional we have all come to enjoy… wait, what? No?

[stewardjames]

I can see a lot of M3 SR's getting wrapped if people don't want white. Never had a car wrapped personally but given the cost of the tax and the colour to begin with it's got to be worth a look?