Question on the First Year VED on Preregistered Cars

[scz4]

Morning all,

How does the VED work on a pre-registered £40k plus car?

Emissions are not great on the V8 as you all know and the brochure states £1910 for the first year. However, it looks like the On the Road Price* includes First Year Vehicle Excise Duty, delivery fee (£515.00) and registration fee (£55.00).

If you drive the car off the forecourt (as the second owner!) I assume you have to tax it, so what's tax do you pay?

£1910 or the £190 + £390?

What's more confusing is the latter is payable from the second time the vehicle is taxed for up to 5 years.

So if it's built into the new price, but was preregistered last month, is the first year technically free?

G

 

[mickjaguar]

The initial VED £1910 etc is paid on first registration and is, so n effect, part of the purchase price. This part isn't refundable if the vehicle is resold. So, it's not free and you have to pay the next full five annual VED's, from that point, which will have the luxury supplement added, just as you would buying any second hand car.

Taking my car as an example. It was registered in September 2019 as a dealer demo and then sold to the first customer owner in March 2020. This means the luxury tax is payable up to the end of February 2025. My VED renewal is in July (when I bought it). and this has just come through being 8 months at the full rate £600p.a.) and 4 months at the reduced rate (£190 p.a.).

 

[Billymcmred]

Morning all,

How does the VED work on a pre-registered £40k plus car?

Emissions are not great on the V8 as you all know and the brochure states £1910 for the first year. However, it looks like the On the Road Price* includes First Year Vehicle Excise Duty, delivery fee (£515.00) and registration fee (£55.00).

If you drive the car off the forecourt (as the second owner!) I assume you have to tax it, so what's tax do you pay?

£1910 or the £190 + £390?

What's more confusing is the latter is payable from the second time the vehicle is taxed for up to 5 years.

So if it's built into the new price, but was preregistered last month, is the first year technically free?

G

Are you looking at the nearly new cars that Synter have for sale (registered May 2024 ?)
My understanding is even if it’s built into new price VED (road tax) is not transferred so you will have to tax it dealer might even get refund on what tax they have not used.

I suppose it’s a question to ask dealer I had same thoughts tho is the initial £1910 tax on first registration or first time car is taxed
I don’t know if it’s possible to register car but not tax it

I have found 4 month old F type already taxed so if I purchase tax will be £190 + £390 as when I tax the car as second owner it will be the second time it’s taxed all be it only 4 month after it was first taxed

 

[scz4]

Are you looking at the nearly new cars that Synter have for sale (registered May 2024 ?)

Morning Billy,

Potentially. One spec has really caught my eye, but to be honest it's out of budget and adding another £1900 on would absolutely push it over, hence the question.

Hadn't thought they may get it refunded. Will ask the dealer if the enquiry comes to anything.

What complicates things more is it shows as untaxed. So perhaps it has been registered, but not taxed. Or even SORN's so they can claim the tax back.

 

[scm]

What complicates things more is it shows as untaxed. So perhaps it has been registered, but not taxed.

Surely not complicated - tax is no longer associated solely with the car, but with the car and owner - it's no longer tranferable on sale. Whoever traded it in would have got a refund on the tax they don't now owe on the unused portion of the year, and the dealer won't tax it until they've got a new buyer for it, or they choose to put it on the road as a demonstrator or company car. Test drives are usually done on trade plates.

 

[scz4]

What complicates things more is it shows as untaxed. So perhaps it has been registered, but not taxed.

Surely not complicated - tax is no longer associated solely with the car, but with the car and owner - it's no longer tranferable on sale. Whoever traded it in would have got a refund on the tax they don't now owe on the unused portion of the year, and the dealer won't tax it until they've got a new buyer for it, or they choose to put it on the road as a demonstrator or company car. Test drives are usually done on trade plates.

It's complicated because these cars were all registered by Jaguar 3 weeks ago and the on the road price includes the first years tax. So where has that tax "gone"?

Now if it's a two year old car then your comments above obviously apply. Been that way for around 10 years now I think.

 

[mickjaguar]

It's all explained on https://www.gov.uk/vehicle-tax-refund

Albeit a complicated to follow. Look for the short paragraph that says "refunds in the first year will be based on the lower of, "the first VED amount already paid or the second year VED that will payable". i e. If the vehicle has already been taxed for the first time, the first owner only gets a partial refund of the first year amount ( in this case based on the second year rate). The second owner pays the 'year 2' rate.

 

[Billymcmred]

Are you looking at the nearly new cars that Synter have for sale (registered May 2024 ?)

Morning Billy,

Potentially. One spec has really caught my eye, but to be honest it's out of budget and adding another £1900 on would absolutely push it over, hence the question.

Hadn't thought they may get it refunded. Will ask the dealer if the enquiry comes to anything.

What complicates things more is it shows as untaxed. So perhaps it has been registered, but not taxed. Or even SORN's so they can claim the tax back.

tx.png

Hahaha
I guessed you were looking at these, price is good for effectively a brand new F type circa £20K discount.
I done the exact same checked to see what if any had been taxed I didn’t find any out of the 5/6 I checked so guessing not taxed, I thought the same as I had seen two (Firenze red) one was £65K (RWD) the other was £68K+ (AWD) and then possibly another £2.5 VED I did contact Synter but didn’t answer question about VED in reply so left it at that.
I think these will be one owner you will be second
Let us know how you get on

GL

 

[scz4]

Hahaha
I guessed you were looking at these, price is good for effectively a brand new F type circa £20K discount.
I done the exact same checked to see what if any had been taxed I didn’t find any out of the 5/6 I checked so guessing not taxed, I thought the same as I had seen two (Firenze red) one was £65K (RWD) the other was £68K+ (AWD) and then possibly another £2.5 VED I did contact Synter but didn’t answer question about VED in reply so left it at that.
I think these will be one owner you will be second
Let us know how you get on

GL

I think I recognise the two cars you're potentially looking at on the Sytner site. Good luck!

For me, I got carried away at the prospect of owning a brand new F-Type at a discounted price. However, that price is still way above budget, so need to reign my search back in and most importantly be patient!!