9:11 am, July 31, 2008
HERE’S an interesting potential trend, highlighted by motor factor Car Parts Direct.
We could be about to see a scrabble from motorists seeking out cars more than eight years old. Why? Road tax.
Models registered before March 2001, rather than being hit with the VED banding system, pay a simple two-option rate for road tax, based on engine size. It’s simplicity itself: engine smaller than 1549cc? £120. Larger? £180.
This means higher-emitting cars will be exempt from punitive £400 annual charges – which has led Car Parts Direct to predict increasing demand for older Audis, BMWs, Mercedes and Lexus.
The thinking is, there may even be a premium develop for cars built around this time, that were registered before March 31 2001. It’s probably something you’re already aware of, but is definitely something to consider when, next year, the hype over road tax is predicted to reach fever pitch.
It’s a positive way to market older models, particularly performance machines. Also don’t forget, when even many conventional MPVs are being hit with high VED charges, now could be the time to seek out the road tax winners. Before others cotton on…
