[Pete74]

I have conflcting experience re the luxury car tax and price increases between order date and first registration to DVLA. My last 2 cars were ordered sub £40K but a list price increase before I collected the car put them over £40K.
The cars did not attract the 'luxury' car tax hike. I have asked my Kia retailer today and they have confirmed that is correct. So 3 separate/different marque main dealer franchises have given the same outcome.

Now I am not denying that if you read the letter of the Regulation and DVLA/HMRC pages on various websites it does say first registration; just that in my cases (reality?) it was the list price at date of order that was used.
I guess then that there is some 'interpretation' of what first reg actually means. This especially so where price increases to over £40K occur between order and issue of a V5C. It just feels 'fair and right' doesn't it?
I hope so for those potentially at risk. I will still be just under so not affected this time around.

 

[dhb]

I have conflcting experience re the luxury car tax and price increases between order date and first registration to DVLA. So 3 separate/different marque main dealer franchises have given the same outcome.
it was the list price at date of order that was used. I guess then that there is some 'interpretation' of what first reg actually means.

You might have hit on something here, i believe that new cars are registered by the dealer so it could all be down to the value the dealer enters on the registration form perhaps? Given the UK Gov and its history with centralised IT i cant believe that its done from some central database, so perhaps there is scope for, shall we say, a kinder dealer to put the older figure in where a more strictly correct one enters the current, correct figure? The result for the customer being an extra £310 a year for 5 years or not.

 

[Aerofly]

I know that all sounds great for us, the customer, if this is in fact what some dealers are doing, but the truth is that the dealer will be breaking the law by not following the proper procedure and could risk prosecution and indeed their ability to remain a dealer. Sure they could plead ignorance, but as we all know ignorance, or indeed the dealers interpretation, is no defence when it comes to the law.

So if it did happen to a customer and they managed to scrape in under the limit and save the extra, what then happens if the dealer then gets found out?. The customer (that’s us) will probably be driving around in a car in the wrong tax bracket, so effectively not taxed!!, and that would open up another whole can of worms!!.

 

[Pete74]

I am not saying it is the dealers taking the easy interpretation; I am saying that it could well be that official HMRC/DVLA guidance/operating instructions allow that interpretation. Often in such matters clarification of the Regulation/Law is given in subsequent guidance/operating instructions. I tried locating such but haven't found anything yet.
As you say the risk to a dealer is huge and 99% would be most unlikely to take that risk. However, the fact that 3 different major marques have said the same thing, and my 2 previous experiences prove that it happens, suggest the simple definition that the date of a first reg is the issue of a V5C may not be absolutely correct.

 

[Edey94]

So I’m a bit gutted and I’m sorry for the rant, so I spoke to my dealer today who I want to assume she definitely made a mistake but I’m sure that’s what is gonna happen. With the possible unconfirmed increase of price for the 1 of July anyone that order a GT Line S 2WD 2 tone by what initially the dealer said was that it will definitely will go over the £40k making it to the luxury vehicle tax band. However 5 second later she change her mind and said that was not the case and we will have to wait till July.

I then spoke with her hypothetically the prices going up and we as costumer who order that specific model not to go over the tax band are now been punish by having to pay more been out of budge that initially calculated and I want it to start hearing about compensation, she reply that Kia would no compensate because of that like WTF

hope it makes sense

 

[Belamba]

So I’m a bit gutted and I’m sorry for the rant, so I spoke to my dealer today who I want to assume she definitely made a mistake but I’m sure that’s what is gonna happen. With the possible unconfirmed increase of price for the 1 of July anyone that order a GT Line S 2WD 2 tone by what initially the dealer said was that it will definitely will go over the £40k making it to the luxury vehicle tax band. However 5 second later she change her mind and said that was not the case and we will have to wait till July.

I then spoke with her hypothetically the prices going up and we as costumer who order that specific model not to go over the tax band are now been punish by having to pay more been out of budge that initially calculated and I want it to start hearing about compensation, she reply that Kia would no compensate because of that like WTF

hope it makes sense

My dealer said if you’ve signed a contract before the price increases you’re price protected. So if that your case I wouldn’t worry too much!

 

[Hatch]

My dealer said if you’ve signed a contract before the price increases you’re price protected. So if that your case I wouldn’t worry too much!

Unfortunately whilst people will/may be price protected the tax position is taken from the current Kia price list, so whilst the customer may pay under £40k the car will reach the level for luxury tax to apply.

 

[xtrailman]

I'm definitely now going to be paying luxury tax on my order, thanks greedy Kia.

 

[dhb]

I understand that people are upset over the additional tax when a cars list price goes over £40k, but in the overall scheme of the costs of a £40k car is £300 a year really so much? Its an additional £25/month on top of the finance, insurance etc.

I geniuenly dont understand why people are so angry over it in general, i do understand about price increases between order and delivery thats a different matter but its likely 5-6% increase if you look at it monthly.

Is it because its a "tax"?

 

[Edey94]

I understand that people are upset over the additional tax when a cars list price goes over £40k, but in the overall scheme of the costs of a £40k car is £300 a year really so much? Its an additional £25/month on top of the finance, insurance etc.

I geniuenly dont understand why people are so angry over it in general, i do understand about price increases between order and delivery thats a different matter but its likely 5-6% increase if you look at it monthly.

Is it because its a "tax"?

The total tax to my understanding is £500 and a bit more !
My insurance is close to £2.8k a year
So yes I’m angry for the extra £400 I need to pay a year
Also counting everything else going up and up

 

[PeterSportage]

My dealer didn’t even inform me about luxury tax and I must have been living under a rock as I never even knew it existed. Dealer probably blinded by £ signs in his eyes when I went for AWD 2 tone. I’ve only been paying £10.00 a year for the last 6 years so won’t winge too much now. Time I paid my fair share I suppose. Though it is a bit of a shock and not really a fair system of taxation. It should be based on emissions not cost of car.

 

[PeterSportage]

Makes me think about changing my car every 3 years now so I only have to pay 2 years luxury and start again. And judging by some of the delivery times maybe I should order the next one now. It may arrive in 3 years time 😂😂😂

 

[PeterSportage]

With you there. A lot of people ordered a car just under the threshold if they had known at the time they would have to pay luxury tax I’m sure they would have ordered what they really wanted and gone up a spec or two tone colour 👍

 

[PeterSportage]

Maybe we should petition the government for list price on order not list price on first registration 😁😁

 

[Pete74]

The GT Line S HEV 2wd will not exceed £40K even after the £750 price rise on 1st July. List price should then be £39930).
You do not include Road Fund Licence and 1st registration charge of £275.00 in the list price. I have included the £800 for premium 2 tone paint in that calculation.
From a quick check it looks like it is only the AWD versions that are all now over the £40K mark. Some were already but all now come out at over £40K from a quick scramble thru' the old price list.

It is always risk in ordering cars close to that stupid limit (especially when it means that PHEV cars will be taxed at the exorbitant rate). However, that is the buyers risk and not the dealers; whether you realised that or not it is your risk. Price rises can happen within a few weeks of ordering so the fact that some have had to wait so long is irrelevant in the legal scheme of things. Even expecting any form of compensation from Kia is perhaps unfair in those circumstances. A better bet would be to lobby your MP to get that limit increased.

There should be someone on here ( or the FB pages) who receives their car after 1st July (Friday this week) who can tell us whether their GT Line S 2WD HEV is put into the luxury tax bracket.

I have told before that my current car was over £40K at 1st reg but under when ordered. I don't pay luxury tax so it must have been possible to legitimately register the car using the order date list price; as a large regional main dealer I can't imagine they did so under the counter.

 

[Newbie to Kia]

The GT Line S HEV 2wd will not exceed £40K even after the £750 price rise on 1st July. List price should then be £39930).
You do not include Road Fund Licence and 1st registration charge of £275.00 in the list price. I have included the £800 for premium 2 tone paint in that calculation.
From a quick check it looks like it is only the AWD versions that are all now over the £40K mark. Some were already but all now come out at over £40K from a quick scramble thru' the old price list.

It is always risk in ordering cars close to that stupid limit (especially when it means that PHEV cars will be taxed at the exorbitant rate). However, that is the buyers risk and not the dealers; whether you realised that or not it is your risk. Price rises can happen within a few weeks of ordering so the fact that some have had to wait so long is irrelevant in the legal scheme of things. Even expecting any form of compensation from Kia is perhaps unfair in those circumstances. A better bet would be to lobby your MP to get that limit increased.

There should be someone on here ( or the FB pages) who receives their car after 1st July (Friday this week) who can tell us whether their GT Line S 2WD HEV is put into the luxury tax bracket.

I have told before that my current car was over £40K at 1st reg but under when ordered. I don't pay luxury tax so it must have been possible to legitimately register the car using the order date list price; as a large regional main dealer I can't imagine they did so under the counter.

Although someone disagreed with me on this forum and couldn’t evidence their view I also believe delivery (?£550) is excluded from the RRP to get to the list price for VED purposes. I went through this very issue with a Honda dealer recently so fairly sure it is right.

 

[PeterSportage]

The GT Line S HEV 2wd will not exceed £40K even after the £750 price rise on 1st July. List price should then be £39930).
You do not include Road Fund Licence and 1st registration charge of £275.00 in the list price. I have included the £800 for premium 2 tone paint in that calculation.
From a quick check it looks like it is only the AWD versions that are all now over the £40K mark. Some were already but all now come out at over £40K from a quick scramble thru' the old price list.

It is always risk in ordering cars close to that stupid limit (especially when it means that PHEV cars will be taxed at the exorbitant rate). However, that is the buyers risk and not the dealers; whether you realised that or not it is your risk. Price rises can happen within a few weeks of ordering so the fact that some have had to wait so long is irrelevant in the legal scheme of things. Even expecting any form of compensation from Kia is perhaps unfair in those circumstances. A better bet would be to lobby your MP to get that limit increased.

There should be someone on here ( or the FB pages) who receives their car after 1st July (Friday this week) who can tell us whether their GT Line S 2WD HEV is put into the luxury tax bracket.

I have told before that my current car was over £40K at 1st reg but under when ordered. I don't pay luxury tax so it must have been possible to legitimately register the car using the order date list price; as a large regional main dealer I can't imagine they did so under the counter.

Hope that’s true for you. Post some pics when you get the car would love to see some genuine pics and not just Kia brochures pics of that colour 👍

 

[PeterSportage]

Although someone disagreed with me on this forum and couldn’t evidence their view I also believe delivery (?£550) is excluded from the RRP to get to the list price for VED purposes. I went through this very issue with a Honda dealer recently so fairly sure it is right.

I believe you’re right. List price does not include delivery, plates or ved. Those prices are given with the on the road price which wouldn’t affect the luxury bracket

 

[PeterSportage]

The GT Line S HEV 2wd will not exceed £40K even after the £750 price rise on 1st July. List price should then be £39930).
You do not include Road Fund Licence and 1st registration charge of £275.00 in the list price. I have included the £800 for premium 2 tone paint in that calculation.
From a quick check it looks like it is only the AWD versions that are all now over the £40K mark. Some were already but all now come out at over £40K from a quick scramble thru' the old price list.

It is always risk in ordering cars close to that stupid limit (especially when it means that PHEV cars will be taxed at the exorbitant rate). However, that is the buyers risk and not the dealers; whether you realised that or not it is your risk. Price rises can happen within a few weeks of ordering so the fact that some have had to wait so long is irrelevant in the legal scheme of things. Even expecting any form of compensation from Kia is perhaps unfair in those circumstances. A better bet would be to lobby your MP to get that limit increased.

There should be someone on here ( or the FB pages) who receives their car after 1st July (Friday this week) who can tell us whether their GT Line S 2WD HEV is put into the luxury tax bracket.

I have told before that my current car was over £40K at 1st reg but under when ordered. I don't pay luxury tax so it must have been possible to legitimately register the car using the order date list price; as a large regional main dealer I can't imagine they did so under the counter.

True what you you say and it’s my own fault not knowing about luxury tax but had the dealer mentioned it when I was ordering I may have gone for the two wheel drive and not the AWD. I’ll live with it now though and cut down on greggs 😂

 

[xtrailman]

Although someone disagreed with me on this forum and couldn’t evidence their view I also believe delivery (?£550) is excluded from the RRP to get to the list price for VED purposes. I went through this very issue with a Honda dealer recently so fairly sure it is right.

Sorry but it's not.