Road fund licence increase?
Just reading the Eastern Daily Press newspaper and noticed an advert from Simpsons Motorhomes and I quote....'AVOID THE ROAD FUND LICENCE INCREASE FROM £265 TO £2135 ON 2020 MODELS'!
Have I missed something whilst being away from home.
I am sure one of you is going to put me wise.
Comments
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Greylag
The Government have decided that motorhomes with a £40000, or greater price tag will have their VED based on emissions where as at the moment they are treated as light goods vehicles. This only applies to motorhomes of up to 3500kgs in weight. (Larger motorhomes heavier that 3500kgs will continue to be taxed at the commercial rate of £165 a year.) In practise this means the any motorhome costing over £40000 (the majority) will be treated as a luxury car and be libel for an initial £2125 VED on purchase and there after £465 compared with the current £265 annual VED. It does seem a bit vindictive as people who buy motorhomes, I suspect, are not the same people that buy luxury cars. It will be interesting to see how many people uplate their 3500kgs motorhomes to a higher weight in order to avoid the ongoing £465 annual VED.
David
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Some more info for you from previous discussions, Greylag. If you scroll through the Motorhome section there are a couple more threads that you might like to catch up on.
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I am about to take delivery of an Elddis Encore 255 2019 model. Has anyone who has one any comments good or bad?
Moderator Edit:
Please would you repost your enquiry as a new thread in the Motorhomes Section so we can keep this discussion on topic.
Many Thanks.
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I think you are more likely to get answers if you start a new discussion rather than tack onto this one. People won't see what you are asking for, only seeing a thread entitled Road Fund Licence Increase.
Moderator Edit:
Many thanks Wherenext. Hopefully this will be reposted as a new thread and people won't get sidetracked and go off topic.
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Plus if all the comments were negative, it appears you are now stuck with your decision.
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I was thinking about buying a new Peugeot van conversion this year (maybe at the show) and having checked the emissions data it seems the first year tax will be £2135 (for a vehicle over £40,000) plus an extra annual tax of £320 for each of the first five years (£1600 total plus normal annual duty) as the emissions of 287 g/km are in the highest band. So, an extra £3735. I guess that's only 6% or so of the purchase price but still a bit of a blow. May have to rethink.
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Hitchglitch
I wonder if we will see manufacturers introducing very basic models of van conversions to get them under the £40000 threshold? Could they get round the higher rate VED by offering a whole list of spares which whilst taking the total cost of the van over £40000 it might avoid the extra tax? I suppose it depends whether the new rates are based on the basic price or with spares added. Glad we decided to change our van earlier in the year.
David
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from memory, Elddis have three new PVCs at under £40k, i think some of the Conti budget ranges might just sneak under...
although i think the new level VED tax is (will be) still applicable on used vans throughout the first six(6) years, buying used at say trhee years old would offset the total hit.
similarly, buying a used van (sometime in the future) that was first registered prior to the introduction wpuld avoid it altogether and give a better van for the same (or less now) money.
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We are going to the dealers tomorrow to look at pre-registered 2019 motorhomes to avoid the price increase. They say that the “luxury tax” doesn’t apply but I think that’s wrong. We’ll see!
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I think it will depend on the Certificate of Conformity and whether it has the emission listed? If the emissions are not listed I can't see how they could charge the higher rate? But we do live in interesting times!!!
David
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Apparently the current Peugeot engine is Cat. 6 and the new one (next year) is Cat. 6D which ironically has better emissions but has to comply with more stringent standards and therefore is subject to higher rates. At least, that’s what I was told this morning! The dealer also said that they are proceeding on the assumption that motorhomes greater than 3500 kg will be included in the new tax regime and will be indicating increased prices accordingly.
Anyway, all that is encouraging us to go for a discounted pre-registered model rather than wait for the show as the new models which we are looking at will be largely unchanged.
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