Road tax, anyone know 'why' it changed?

[jimbouk]

Not surprisingly as I'm cheap and don't look at new cars, but I completely missed the bit when they stopped taxing vehicles on emissions after the first year. Can anyone fathom why? Seems to be a 'pay once for your lifetime of high pollution' approach now, but older cars keep paying higher rates forever (well 40 years).

I've been pondering a GT86 when I spotted cheaper tax ones, that were newer but equally as polluting. I also like to casually browse completely impractical cars and noticed a post 2006 tax change RX-8 was now over £700 a year! It's certainly made me think about getting something a bit newer if I do get the chance! I'd still like to try and RX-8 mind...

[DDY]

I recall the VED bands were updated because cars on the road were becoming more efficient over time, reducing CO2 emissions, which in turn reduced the amount of VED collected, so the new VED bands charge proportionally more for the more CO2 efficient cars and proportionately less for the less CO2 efficient cars. Therefore, offsetting the loss of VED from the numerically greater efficient cars.

Would have been good if the new VED bands applied to older vehicles, like my 2016 GT86

That said. For the difference in VED between a 2016 and 2017 model GT86, £335 vs £190… Meh. A track days’ worth of fuel.

What’s less palatable, the RX8 drinks fuel, probably half the fuel economy of the GT86, and of course consumes oil like it’s a 2-stroke. I currently spend about £2000 on fuel a year on the GT86, so the fuel bill would be closer to £4000 had I bought an RX8!

[jimbouk]

Would have been good if the new VED bands applied to older vehicles, like my 2016 GT86

That said. For the difference in VED between a 2016 and 2017 model GT86, £335 vs £190… Meh. A track days’ worth of fuel.

What’s less palatable, the RX8 drinks fuel, probably half the fuel economy of the GT86, and of course consumes oil like it’s a 2-stroke. I currently spend about £2000 on fuel a year on the GT86, so the fuel bill would be closer to £4000 had I bought an RX8!

Ah that makes sense, lost income as cars move steadily down the tax brackets so they just move to a blanket 'tailpipe equals payment' system. I guess the market for second hand cars below the new £190 amount would have increased then, something with a £35 annual bill could be very appealing (one of my other autotrader searches, best 0-60 for the lowest tax at a sensible price point).

How is the GT86? I can't afford one as a second car so would need to replace the i30 (MR2 needs to go, rust starting to set in beyond my enthusiasm to deal with) - 4 year old would have to go in the back behind a 5' 9" passenger (I'm 5' 10" so potentially behind me?) with very occasional 4th seat occupancy. And I did read that an oil cooler was needed if you were going on track, but not everything you read on the internet is true...

(yes I just derailed my own thread...)

[b0redom]

Well there's that whole supertax in the first year if you car is more than £40k thing. The tax brackets do seem a bit bonkers though. When I was looking for a summer car, there was hardly any difference between an MX-5 and my supercharged SLK (which I ended up getting). I would have thought the SLK was significantly more polluting than the MX5 though.

[DDY]

I’ve read the anecdotes online about oil coolers, I’m not convinced myself.

Racing, maybe. Modified engine, say forced induction, maybe. Track days with an unmodified or even moderately tuned NA engine, I doubt it. Not had any issues myself without an oil cooler.

I generally treat the car like it only has two seats. I’m 5’5” and there’s between 5” to 6” of knee space behind my seat. I’ve managed to get four adults in the car for short journeys, which while possible is quite difficult, certainly two adults max for long journeys, I reckon it will work for younger children though.

Coming up to year three of ownership, no real issues to report, really fun to drive and more track days and road trips planned!

[AGTDenton]

Well there's that whole supertax in the first year if you car is more than £40k thing. The tax brackets do seem a bit bonkers though. When I was looking for a summer car, there was hardly any difference between an MX-5 and my supercharged SLK (which I ended up getting). I would have thought the SLK was significantly more polluting than the MX5 though.

They should really update that £40k figure in line with inflation to at least £60k by now

[[GSV]Trig]

It's changed because its easy to rip off motorists...

[kalniel]

It's changed because its easy to rip off motorists...

It got cheaper for SUVs and polluting cars though

[badass]

They should really update that £40k figure in line with inflation to at least £60k by now

If someone can afford to pay £15K in depreciation simply to have a new car rather than buying second hand then they probably wont even notice the extra tax.

[DDY]

We should also consider that a significant number of new cars aren’t bought new outright from the showroom but rather financed through some leasing agreement, and likely to be handed back after the lease term ends. An individual acquiring a car this way doesn’t have to worry about depreciation, or indeed even VED since they don’t actually own the car, and instead just deal with the monthly payments.

Which is to say, a lot of people with ‘new cars’ aren’t worried about depreciation nor VED, not because they have the wealth to spare, but because it’s not actually their car. They do ultimately pay for depreciation and VED, it’s just bundled in to the monthly cost. Not something the sales advisor would voluntarily say, of course.

[jimbouk]

Will keep my eyes out for some cheap to tax but horrifically polluting used cars in another 5/10 years time then! Who said big engined petrol cars are dead?

[kalniel]

Will keep my eyes out for some cheap to tax but horrifically polluting used cars in another 5/10 years time then! Who said big engined petrol cars are dead?

Exactly!

I just bought a 2.4l normally aspirated car. Not a hint of hybridisation (or lane keep assist etc. etc.) - I've gone back to the dinosaurs in the hope it'll hang around for many many years to come. Funny you were considering a GT86...

[jimbouk]

Yeah sensible head wants sensible running costs! I'm forever flipping between a single fun car being the solution to my car boredom (pretty much GT86 or nothing as a go faster normal car just didn't do it for me) or a boring car (currently an i30) for practical duties and a fun car for jollies.

MR2 is the fun car atm, sadly it's got rusty and needs to go - I got motivated to try and sort it myself and set aside 3 evenings this week but only ended up being able to have a look last night, then can't shift any of the suspension bolts under it myself. Also two seats means it's rarely driven, must do <5000 miles in total in both cars and averaged <500 miles in the MR2. Track days also haven't materialised as planned in the last couple of years for various reasons. A dilemma, and if I had another £10k in the bank it would be a more fun dilemma!

[kalniel]

Well I mean I know where you're coming from...



It is my only car and I daily it. I've been amazed by the practicality but we're 2+dog rather than kids.

[jimbouk]

Looks lovely! Not at all jealous, definitely not...

I've never actually needed to commute in a car so previous 'dailies' (only cars) have been a Porsche 924 Turbo & a Smart Roadster. Heading towards 40 and after putting up with a Dacia Sandero and a sore back on long journeys due to the little one we were due a change. Sadly the only compromise my other half was willing to make was my enjoyment! 5 doors, 5 seats, room in the back for the in-laws, large boot... if only she could actually drive. Anyway enough domestic moaning, day off so time to hoover and dust the house

[kalniel]

So an RS4 or 6 then?

If hatchback gives enough boot then I was very impressed by the i30N - certainly quite a lot more space than many SUVs. If more needed then octavia vrs was on my watchlist too but avoid the generation with infotainment gremlins.