Tax

[johnd]

Whilst I agree to a large extent, there is a marginal effect whereby marginal buyers are turned away. Others decide to retain current cars rather than buy facelift. That affects demand and the market turns with knock-on effects through used prices and resale values.

I'd go along with this too. It's not the actual amount of money - anyone buying a new Porsche is not on the breadline. It's the psychology of realising that the annual car tax has gone up 400% or more (or whatever the exact number might be) that gives people pause for thought.

IOW it's the magnitude of the change not the absolute amount of cash. And whereas previously the annual car tax was a relatively inconsequential amount of money for anyone reasonably well-heeled, it's now potentially equal to your annual electricity or gas bill. So car tax has suddenly moved into a completely different category of monthly/annual household budgeting.

[Cheshire Cat]

Life is too short to be getting upset about RFL. Wait until electric vehicles are the main vehicles on the road and then the Government, whoever they may be, will have to make up the shortfall from the taxes on fuel which is currently 69.54 pence per litre. Buying a £60k car and baulking at RFL doesn't add up although I can see that some people will see the RFL as a rip off particularly given the state of our roads.

[Wing Commander]

I’m not being disrespectful but you don’t buy a Porsche for economy, Road tax is what it is, it wouldn’t stop me buying the car of my choice, people will buy a Porsche regardless

Whilst I agree to a large extent, there is a marginal effect whereby marginal buyers are turned away. Others decide to retain current cars rather than buy facelift. That affects demand and the market turns with knock-on effects through used prices and resale values.

For instance, there is a discussion on one of the UK BMW Forums, how many who bought 340is on PCCP with large discounts 3 or 4 years ago pre 2017, are being pushed by the £40000 limit towards GOLF GTIs and equivalent or retaining their current cars

I think what the government were trying to achieve, amongst other things, is encouraging folks to keep their cars for longer, which I guess has a positive effect on overall emissions over the entire lifetime of a car? Looking at the link above, my car's first year's RFL would be £1,280, then £465 a year for 5 years, then reducing to a relatively bargain £145 a year from Year 7! As to whether I can hang on to a car for that long is another matter entirely...!

[bennachie]

At least it now has to be spent on the roads.....................

The crunch will come, as has been said, when the 'electric boom' arrives and the fuel tax rake-in evaporates. The shortfall will have to come from somewhere. Increased 'registration fees' and road pricing on the horizon to avoid Mrs Miggins paying half a million pounds a year to light her home......