Car tax: Drivers caught out by expensive vehicle charge with many paying ‘higher’ costs

Martin Lewis gives money-saving advice on VED car tax

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Drivers are being caught out by the “expensive car” tax charge which adds an extra £335 per year fee on new models priced over £40,000 for five years. Mr Briggs has warned buyers have been “left unsure” over when their vehicle is taxed with drivers who opt for extras then made to pay the higher rates.

Speaking to Express.co.uk, Daniel Briggs, CEO for Motorfinity said: “It’s worth noting that this additional tax relates to cars and motorhomes with a ‘list price’.

“[This] is the original published price before discounts are made and doesn’t take into account any offers or optional extras the car buyer may have taken advantage of.

“However, this has led to some confusion recently amongst buyers who have been left unsure of at which point the car is taxed.

“As a result, some consumers who have recently purchased cars have ended up being faced with a higher tax bill than what they had planned for.”

GOV.UK says the list price of a vehicle is the published price before any discounts have been applied.

They urge drivers to check the list price with their dealer so they are aware of how much tax they may need to pay.

GOV.UK confirms the extra charge will only need to be paid for five years before only standard rates will apply.

But this still means drivers will pay £1,675 over the course of half a decade for a charge they may not have intended to pay.

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This would be added into drivers’ existing tax fees which can rise up to £2,245 for vehicles registered in their first year who also emit the highest pollution rates.

Mr Briggs has warned “national inflation” or price rises from manufacturers before their car is delivered could also make a difference.

In this case, drivers could be forced to pay the “expensive car” tariff even if they ordered vehicles before the higher charges were introduced.

He has urged prospective buyers to be careful” of non-standard items which could get motorists “close or over the threshold”.

He told Express.co.uk: “Even if the list price at the time of the order is below £40,000, cars which are made to factory order can take several weeks, or even months to arrive.

“During that time, due to national inflation, manufacturers could have put their prices up and as a result, the car list price will also go up.

“This means that a car that might have previously fallen below the price threshold at the time of purchase could now be liable for the higher car tax bracket.

“Buyers also need to be careful of optional add-ons and non-standard accessories.

“The list price is calculated to include any optional extras added to the car, which could be anything from metallic paint to a built-in satnav.

“Sometimes, a standard car can fall below the £40,000 list price, but adding a few extra options can get you close or over the threshold.”

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