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TAX Beginning of the end of the performance car?


Donaldtramp
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How do you guys feel the latest hike in road tax is going to affect performance cars? I can't see the second hand values holding up with these increases coming.

Times article

and a good table for to calculate your new tax...

BBC website road tax table

I drive an M3, in the highest tax bracket, and very shortly I'll be paying £455 a year just to buy a tax disc!!

I think this is just the start of it. Oil prices keep on rocking to new highs and to the chancellor we're an easy target. Another fuel duty rise is due in 6 months.

It's going to get much, much worse!!

Just thought I'd see if anyone had any thoughts/opinions.

Cheers

DT

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....You have a simple choice imo - Pay up and forget it and then enjoy your car as an enthusiast and for all the reasons you bought it, OR, change to a 'lesser' car and feel bitter about it.

Surely you'll feel more shafted by govn'ment as you drive around in something like a Pious rather than your M3. These low performance cars are less safe too.

Think Positive.

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On the plus side, the manufacturers aren't stupid. They will make something desireable which still meets the low emission criteria.

I reckon people will probably have a boring car for day to day use and those able to afford it a small, light, nippy (but stylish) cheapish car for weekends.

Something funky but cheap like the new Alfa Mi.to in looks, but with engines both economical yet zippy. Then throw in a load of features which would make it fun to drive.

A fiat 500 Abarth seems to be the sort of thing I'm talking about.

Just my thoughts before you all shoot me down in flames.

Alfa_Romeo_Mi_To.jpg

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I'm sorry, but although the costs have increased I can't see the extra money being much of an issue to an owner of a performance set of wheels.

Take an M3-

£1000 a year insurance

20 mpg

£500 service cost

15% depreciation per year

£800 tyres per year

Any increase between existing and new tax bands of £200 odd isn't going to break the bank of such an owner driver.

As for the 1 off tax on purchase £1000 odd, well that's about 1/2 a car leather option, 1/2 sat nav option or 2 blue-tooth options. Again in the scheme of things a £1000 isn't going to stop people buying a £40k++ new car.

Annoying yes, but it won't prevent people buying them. No more that say the stamp duty for 500k+ prevents people buying houses over £500k

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I think the big killer these days is the BIK tax on these cars, I know if I had taken the 335i as a company car, it would have cost £600 a month in tax alone, the repayments were less than that!!

That is what will kill off these big cars, people don't mind spending £1000 a month on a car, but having to pay the government is something else that everyone begrudges.

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Depreciation will be a killer too. Although £400+ tax will not deter the buyer of a £30k new car, it will certainly be an issue for someone buying a second hand R32/Subaru etc who can only just afford a £12k purchase price.

This will impact on residuals from new - especially with the increased showroom tax.

I see it being similar to the depreciation on 7 series etc. It will just put people off.

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I'm certainly not going to sell the M3 but I really do think this is the thin end of the wedge.

I have been speaking to a lot of guys about it today and it has already changed attitudes. I forwarded the link about the tax table and it provoked a lot of discussion.

With all this credit crunch going on and a lot of folk struggling to meet mortgages, pay utility bills etc etc.

People will choose NOT to buy sports cars. The best way to get people to change their ways is to hit them in the pocket. This will definitely make a difference, guys were already checking what their car is going to cost them.

God help the folk who have a large 4x4 and try to get money back at trade in over the next 2 or 3 years.

As for the Pious! I've always hated them and believed it to be a huge marketing con. It has been proved (yet again) in an article in The Times comparing the Pious to a 520d BMW on a drive to Europe.

The Pious with no air con on was trounced by the big BMW(air con all the way) on MPG, comfort, speed (and also the fact you didn't look like a twat)

Worth a read:

BMW 520d vs Prius in The Times with a vid clip.

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But all of this has been coming - surely no-one can say "oh, they've just thumped us for it". They started talking about hikes to £300 a year, then £400 a year from this March.

Sales of stupidly quick, big engined and thirsty cars has gone through the roof of late - M3, M5, RS4, upcoming RS6, Ferraris, Lambos etc.

I just don't think that adding £200 a year onto car tax can make any difference at all - with petrol at over £5 a gallon, if your car does less than 30 mpg, you're paying a lot just to run it.

I find it a bit weird that people are talking about selling their cars this year, just because of the increase in tax. So you've got the depreciation to absorb, plus the costs of a new car and everything that goes with it.

Just keep it and enjoy it while you can. I think social pressure will end up having more effect than the govt taxing people.

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I dont like it but im not bothered.

This is nothing compared to the 6500k they want to charge in London.

My current thinking is to turn the csl in to a full on track car and get a banger to run around in.

However seeing that evo 6 on 5th gear looked very nice. Old enough to pass for local rates too! 169144-ok.gif

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I like the Loaded CSL or CSL-GTR idea, but dont plan to do that for at least a couple of years. Id like a 335i for the road really, but at the current rates its still gonna cost a packet!!

At the moment i am paying 80p congestion charge a day. If it does go up, I will have to reconsider my options!

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Well on top of red kens plans in London it could take the running costs on a 911 to well over £10k a year without petrol....

F*** them I am keeping mine smile.gif

Good news is that it looks like big bonking borris is a shoe in now smile.gif

I think the new road tax and petrol prices are definately killing the second hand market for luxury / performance used motors though...Has no effect at all on the new market £1000 + £450 road tax is not going to deter someone spending £70K plus on a new motor....

It will have a big effect of the cars though when they are 3 or 4 years old though.....

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Yep I saw that in Ireland. Took my M3 over for a weeks holiday and I only saw one other M3 on my whole drive.I was in the big towns and cities as well. The Irish were telling me that their tax was ridiculous on big cars.

Not only them. Other countries I've been to, Norway and Denmark (examples I know off) absolutely cripple drivers with tax when buying new performance cars.

It's only a question of time before Broon realises there is another big tax take available. It's gonna get worse....

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Well I agree completely with what Mook said. Increase of £200 - £450 on my road tax on both cars wont make me sell either of them far from it.

However if I was in the London conjestion zone and that **** red ken got in again and the proposed increases came in to effect it would be £10k + a year for each car when you factor in depreciation (but not fuel and servicing costs) I would have to earn £40k a year just to keep the cars....

I agree the social implications and the "used market mentaility" will have a big effect on the residuals though.

I have told my wife I want to be buried in the w12...

Lets just pray Boris gets in as do the tories sooner or latter or we are all completely f***** and not just motoring wise.....

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