Changes in VED Rates

Attention – Changes in VED Rates 
Changes in New Car VED (Vehicle Excise Duty) rates or road tax may effect you!

As of April 1st there is a new system for new cars coming into affect which will have an impact on all new cars sold from April 2017.

Some will less affected than others but we have highlighted some of the biggest potential issues on leasing with new vehicles compared to taking delivery in March to April.

The biggest impact seems to be on vehicles of over £40000. This is based on list price minus Road fund Licence and first registration fee. Taking into account options regardless of CO2 output.
A popular example of this last year was the Mercedes C350e Premium Saloon model. This plug in Hybrid, popular for its spec, Low Co2 rating, low urban running costs and driving performance. Registered before March, see RFL of 1st year of £0 then per year for the remaining 2 on a 3 year lease. If the same car was registered on April the 1st then 1st year is £10 then the remain two years is £460 per year. This crudely will add over £20+Vat per month to a 3 year lease on this type of vehicle. Our tip! Order earlier rather than later. There are even savings in March for delivered vehicles of low CO2 below £40000.

Get in touch for details on what you maybe considering over the next few months to see how much you will save by bringing your decision forward a little.

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One Response

  1. Charlie McCullagh
    Charlie McCullagh May 12, 2017 at 11:00 am

    This is a very interesting debate.

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