Jaguar XE Forum banner
1 - 15 of 15 Posts

·
Registered
Joined
·
24 Posts
Discussion Starter · #1 ·
So after 2017 buyers of xe s will pay 450.00 a year road tax.
and CO2 figures won't mean anything.
think i need to buy a new car in the next 18 months.
 

·
Registered
Joined
·
505 Posts
So far as I can tell from what is in the papers today, all petrol ( suspect that they really mean "petrol or diesel" to judge by the context) engined cars except those valued at more than £40,000 will pay VED of £140 per annum - same as the Toyota Prius and all the other hybrids. Any car worth more than £40,000 will pay £265. I think that some confusion has arisen because the first year's VED seems still to be based on carbon emissions - the petrol XE with 179 gms CO2/km will be £800, up from £350 at present. On this basis, the petrol engined XE will pay £140 VED - less than the present rate which is around £250, unless. of course, you load the car down with every extra under the sun - leaves a bit of a loophole as, presumably, the £40,000 value will be based on the purchase cost, so you could get away with a load of after market enhancements. No doubt the manufacturers could leave lots of socket ended cables in the car, ready for all manner of electronic goodies to be connected up.

As ever, when politicians speak, the phrase "forked tongue" springs to mind.

Ian
 

·
Registered
Joined
·
505 Posts
That's how I interpret the reports. Our Prius VED will go up from zero to £140, whereas the XE will reduce from £250 to £140. I'm not sure that I understand the thinking behind it but that's what seems to be going to happen. It's the first year VED that's the killer, but at least that's a one-off (for now, anyway) and it'll be hidden away in the on-the-road price with other non-essentials like licence plates.

Ian
 

·
Registered
Joined
·
8 Posts
The £450 figure for £40k+ cars is basically a luxury tax. Anyone who can afford a £40k+ car can afford an extra £310 (for the first five years only) is how the thinking goes. Probably fair enough. As noted elsewhere, the first year figure is where the emissions are taxed.
 

·
Registered
Joined
·
799 Posts
The system has always been crazy.

I always enjoyed paying less road tax for a car with twice the power of a Mondeo. But all good things come to an end.
 

·
Registered
Joined
·
448 Posts
I wonder how close the average list price of XEs (ex S variant) bought by members is to £40K and what impact this cost line will have on future specs. My guess on average price is £37K but imagine getting to £39.6K with extras and wanting split seats: ker...ching, £400 potentially becomes £2k over 5 years .
#-O

Yeah, I know, of course you would ditch the seats and for holidays, leave the wife's clubs and trolley behind and let her caddy for you :))
 

·
Registered
Joined
·
799 Posts
Bluefire65 said:
I wonder how close the average list price of XEs (ex S variant) bought by members is to £40K and what impact this cost line will have on future specs. My guess on average price is £37K but imagine getting to £39.6K with extras and wanting split seats: ker...ching, £400 potentially becomes £2k over 5 years .
#-O

Yeah, I know, of course you would ditch the seats and for holidays, leave the wife's clubs and trolley behind and let her caddy for you :))
A dealer might add the options to a car but charge for them as pre paid service costs thus not adding to value of the car.
There will be countless loopholes in what sounds like a poorly thought out tax change. No affect on co car drivers though.

2nd hand luxury cars will nose dive in price.
 

·
Registered
Joined
·
448 Posts
Not sure I agree on suggested loophole: levy will be based on manufacturers' list prices, not invoice price.
My last Co Car scheme allowed salary sacrifice for improving spec but can't see company taking on extra VED for free.
Agree residuals may be affected for cars 1-4 years old because of VED cost though.
 

·
Registered
Joined
·
138 Posts
I suspect that diesel drivers are going to be hit harder soon. Back in April the Supreme Court ordered the UK government to cut NO2 emissions.

http://www.bbc.co.uk/news/science-environment-32512152

You can be sure that the British driver is going to bear the brunt of this. In fact I was surprised that there was not more done in this week's budget on diesels, to be honest. That's one of the reasons I opted for a petrol...
 

·
Registered
Joined
·
448 Posts
Suspect many agree, hence unexpected demand for petrol models
 

·
Registered
Joined
·
799 Posts
Just reading the VED reform now, not read it before. Second hand cars (5+ years) unaffected. Only people to get seriously hit by higher costs are those choosing cars with poor emissions due to the first year additional premium. £2140 for first year on a standard car with 255+ emissions. But not actually overly bad as a deterrent as it's then only £140 per year, so spread over 4 or 5 years it's not as bad as it could be. Actually looks like they will get less revenue from these changes than the current system.

It will make people consider more efficient performance cars though if money is a little tight. Jag had better have something up their sleeves in their petrol range.

Bluefire65 said:
Not sure I agree on suggested loophole: levy will be based on manufacturers' list prices, not invoice price.
My last Co Car scheme allowed salary sacrifice for improving spec but can't see company taking on extra VED for free.
Agree residuals may be affected for cars 1-4 years old because of VED cost though.
There will be a way. Private customers will have certain options fitted seperatley as an easy fix or the dealer will fit free wheels if you pre pay services. I'm not a tax dodge wizard but it's already crying out for someone to abuse it. As for company cars there are methods to seriously reducing the company car tax, just depends who you work for.

martinbailey said:
I suspect that diesel drivers are going to be hit harder soon. Back in April the Supreme Court ordered the UK government to cut NO2 emissions.

http://www.bbc.co.uk/news/science-environment-32512152

You can be sure that the British driver is going to bear the brunt of this. In fact I was surprised that there was not more done in this week's budget on diesels, to be honest. That's one of the reasons I opted for a petrol...
April 2016 the 3% penalty that is currently added to diesel cars (company car tax) is being removed.
 

·
Registered
Joined
·
198 Posts
Am i right at thinking this only affects new cars from 2017 onward and it will not affect mine?
 

·
Registered
Joined
·
799 Posts
Njco74 said:
Am i right at thinking this only affects new cars from 2017 onward and it will not affect mine?
Yes

Yours should be on the current system. Same as cars pre 2001 are still on the non emmissions system so pay a flat rate.
 
1 - 15 of 15 Posts
Top