Hi. About to take ownership of new S3. Spec’d the car to £39750 rrp to keep it under the £40k threshold to prevent the additional £310 annual VED hike. Had finance docs through to sign today, and it states that the car will be subject to the additional VED. Has anyone come across similar? I have an Audi generated spec sheet showing RRP as £39750, so can’t understand how this is happening. Dealership have been pleasant, but not sure what powers they have to change DVLA numbers. Any thoughts would be really appreciated. I have been looking forward to the new delivery so much, and hope this can be sorted.
S3 list price and VED
- Thread starter r10jdl
- Start date
If the list price is below £40k it shouldn't be subject to the excess VED, end of really. Would be a case of contacting the DVLA I'd imagine to ask the question. As believe you deduct registration fees and delivery costs. But if the list price is below £40k shouldn't be flagging up as such.
On a different note I'd happily pay the £310 extra if it means I'd be getting the spec car I want. Rather than scrimping for the sake of £310.
Sent from my SM-G965F using Tapatalk
On a different note I'd happily pay the £310 extra if it means I'd be getting the spec car I want. Rather than scrimping for the sake of £310.
Sent from my SM-G965F using Tapatalk
When did you order? Price rise came in beginning of April and mine jumped into the higher bracket too after confirming the order 20th March (placed it on the 11th I think but changed the spec to add SS Seats). However I was aware from placing the order this may well be the case. SS Seats put my build to within £5 of the tax break but I simply wasn’t prepared to sacrifice my spec for what in truth is a small part of the cost of ownership. Much bigger cost to not get what you really want and change early. Hope you get it sorted, dealer really should have made it clear and it’s really unfair to hit you with the rise if they didn’t, but you may find there is little that can be done. They can discount the car to offset some of the pain but they can’t change the list value and Tax 
Good luck, hope it doesn’t ruin it for you. Get mine next Wednesday
Good luck, hope it doesn’t ruin it for you. Get mine next Wednesday
I spec’d it again yesterday and it came out exactly the same cost. I could have got the tech pack for the additional cost(ish) so I think it’s a big deal. Also concerned over resale value for future. Hopefully the dealer can sort otherwise I’m of the mind to reject it.
Wow, you'd consider rejecting over an extra £25.83 pence a month in VED ?
Whilst the luxury tax on motors is absolutely disgusting, I find it really hard to understand why people get so focussed on it.
When you're spending 40k on a relatively expensive car to fuel, service, insure etc,etc , £26 a month seems somehow insignificant. Annoying, granted, but insignificant all the same.
I suppose at the end of the day, its the final straw that breaks the camels back.
I say balls to it. Forget about the VED and enjoy the car.
That's my exact thinking mate.Wow, you'd consider rejecting over an extra £25.83 pence a month in VED ?
Whilst the luxury tax on motors is absolutely disgusting, I find it really hard to understand why people get so focussed on it.
When you're spending 40k on a relatively expensive car to fuel, service, insure etc,etc , £26 a month seems somehow insignificant. Annoying, granted, but insignificant all the same.
I suppose at the end of the day, its the final straw that breaks the camels back.
I say balls to it. Forget about the VED and enjoy the car.
Sent from my SM-G965F using Tapatalk
I think it depends on what conversations you had with the dealer - if you specifically said you wanted it at a price that was below the £40k threshold, then they've screwed up and should offer you a discount to cover the additional (is it 3 years?) tax. If you didn't have that conversation and di your own calculations your probably stuffed!
I see the ROTR price includes all sorts of stuff some of which is also to be included for VED purposes, so it looks fiendishly complicated e.g. how much is delivery in the total etc.
Push them hard and see what happens !! - Good luck mate!
I see the ROTR price includes all sorts of stuff some of which is also to be included for VED purposes, so it looks fiendishly complicated e.g. how much is delivery in the total etc.
Push them hard and see what happens !! - Good luck mate!
Did you change the wheels?
Not sure if same, but on the RS3 changing the wheels actually doubled the first years VED even though the Audi website didn't take this into account. It may be that it is something similar in this case, and the DVLA are actually using the correct information and you are just over the threshold?
Not sure if same, but on the RS3 changing the wheels actually doubled the first years VED even though the Audi website didn't take this into account. It may be that it is something similar in this case, and the DVLA are actually using the correct information and you are just over the threshold?
Fair enough, and if you have stayed under 40k to avoid the tax and still been stung then that's obviously very wrong.
You need to be having conversations with the Dealer/Audi UK/DVLA to see whats going on.
I've read threads on here where folks have left items out of their spec to keep the car under 40k. Now to me, that is madness. No way would I compromise the spec of my car to save £25.83 a month....
VED is calculated on OTR price not RRP. Check your original order (OTR price) and if it is lower then, as others have said, put your feet into the dealer and see what they can do.
As far as I remember it’s the OTR price minus the first year tax and registration that needs to be under £40k not the rrp figure.
If your car is £39750 and delivery was £251 you will be paying the extra £320 premium car tax as it’s over £40k.
I was in the same boat but dealer played with the numbers so I was £100 or so under £40k
If your car is £39750 and delivery was £251 you will be paying the extra £320 premium car tax as it’s over £40k.
I was in the same boat but dealer played with the numbers so I was £100 or so under £40k
Thanks all. Dealer are not receptive to any fudging of figures, so I’m asking for some kind of gesture to compensate for what I still believe is their oversight. I was thinking discount or servicing, but what do you think? I ordered through drive the deal which complicates in the fact there is another party who also advised incorrectly.
I understand how some of you won’t compromise on spec, but on this occasion I used it as a tool to appease the wife.
I understand how some of you won’t compromise on spec, but on this occasion I used it as a tool to appease the wife.
Spec is relative. Some might want the sunroof and other will get the tech pack for similar price.
I would push for at least 1 or 2 free services or something expensive from the merchandise cabinet. End of the day they want the sale and you want the car so a bit of give here and there. Start high and let them knock you down a bit. That way they feel like they won.
Other thing might be worth thinking about is get them to throw in gap insurance and wheel/tyre insurance.
If you can get the wheel and tyre insurance chucked in that'd be good! I've found it to be worth every penny but don't even pay the list price for it to begin with. Nice peace of mind to have.
Sent from my SM-G965F using Tapatalk
As stated earlier did you specifically state that you wanted the car to be under the threshold for the increased tax rate?
The car you have ordered was always going to incur the additional charge and the dealer should know this, because again as stated it is based on the on the road cost minus first year VED and first registration fee.
The deduction is £530 + £55, so £585 off the on the road price.
I do sympathise with you however, because it was an important factor when I bought my car.
The car you have ordered was always going to incur the additional charge and the dealer should know this, because again as stated it is based on the on the road cost minus first year VED and first registration fee.
The deduction is £530 + £55, so £585 off the on the road price.
I do sympathise with you however, because it was an important factor when I bought my car.
Your chosen colour is the only thing I would not compromise on....absolute best choice!
I don't want to rub salt in your wound but based on todays rates your annual VED would cost £465(a rise of £15 since 1st April), so when you come to renew it for the first time next year expect a similar rise....which means you could be paying £480.
This for me is the issue.....the original purchase price is in the past and no longer matters, so to then have to pay out a significant chunk of money like this every year on top of everything else is just not on as far as I'm concerned.
P.S. Having thought about the annual rise your first year rate should not be subject to increase because it is based on the price of the car when you bought it, but the annual standard rate rise will still apply....so based on previous rises you could expect to pay £470 when you come to renew the tax next year.
I think this is the way it works anyway.....or maybe I am being too trusting of the way HMRC operates.
I don't want to rub salt in your wound but based on todays rates your annual VED would cost £465(a rise of £15 since 1st April), so when you come to renew it for the first time next year expect a similar rise....which means you could be paying £480.
This for me is the issue.....the original purchase price is in the past and no longer matters, so to then have to pay out a significant chunk of money like this every year on top of everything else is just not on as far as I'm concerned.
P.S. Having thought about the annual rise your first year rate should not be subject to increase because it is based on the price of the car when you bought it, but the annual standard rate rise will still apply....so based on previous rises you could expect to pay £470 when you come to renew the tax next year.
I think this is the way it works anyway.....or maybe I am being too trusting of the way HMRC operates.
Last edited:
The extra £310 a year after the first year was a deal breaker for me when i got my car at the start of march i wouldn't of bought my car unless audi got the tax to £140/5 a year which they did .
If you go for the Saloon Black Edition you couldn't specify any options at all without incurring the additional charge.....not even paint.
Based on the Audi figures(£40565 OTR) it just scrapes under the £40k threshold after the appropriate deductions have been made by only £20.
Your chosen colour is the only thing I would not compromise on....absolute best choice!
I don't want to rub salt in your wound but based on todays rates your annual VED would cost £465(a rise of £15 since 1st April), so when you come to renew it for the first time next year expect a similar rise....which means you could be paying £480.
This for me is the issue.....the original purchase price is in the past and no longer matters, so to then have to pay out a significant chunk of money like this every year on top of everything else is just not on as far as I'm concerned.
P.S. Having thought about the annual rise your first year rate should not be subject to increase because it is based on the price of the car when you bought it, but the annual standard rate rise will still apply....so based on previous rises you could expect to pay £470 when you come to renew the tax next year.
I think this is the way it works anyway.....or maybe I am being too trusting of the way HMRC operates.
Isn't it when you tax the vehicle i.e after April will have to pay the current price in the first year - Not sure but wouldn't think you'd be allowed to get away with any tax
The only thing I am not clear on is whether the additional premium based on the £40k threshold will continue to rise every year for existing vehicles. I would have hoped it was based on the rate in force at the time the car was first registered. The annual standard rate rise is accepted and has always happened, but it doesn't seem fair to continually move the goalposts on the additional premium for cars that are already registered and have paid the appropriate first year rate......but then when have HMRC ever been fair!
The only thing I am not clear on is whether the additional premium based on the £40k threshold will continue to rise every year for existing vehicles. I would have hoped it was based on the rate in force at the time the car was first registered. The annual standard rate rise is accepted and has always happened, but it doesn't seem fair to continually move the goalposts on the additional premium for cars that are already registered and have paid the appropriate first year rate......but then when have HMRC ever been fair!
I'm not sure actually but I think you have to pay £145 (Standard) + £320 (Over 40k) this year
Yes that's correct - the additional rate has risen £10 and the standard rate £5.
The standard rate rise is a regular thing and expected, but this additional rate is a relatively new thing and will have been first applied to vehicles having their tax renewed for the very first time in April 2018.
The additional rate probably will increase in April every year until the car is 6 years old, which means that come 2020 existing renewals will be £480 if the annual rise remains constant.
Last edited:
I'd like to think it'd be based on first registration, like cars still pay old rates if registered before 1st April 2017 to dodge the premium tax (or whatever the exact date was).The only thing I am not clear on is whether the additional premium based on the £40k threshold will continue to rise every year for existing vehicles. I would have hoped it was based on the rate in force at the time the car was first registered. The annual standard rate rise is accepted and has always happened, but it doesn't seem fair to continually move the goalposts on the additional premium for cars that are already registered and have paid the appropriate first year rate......but then when have HMRC ever been fair!
Guess I'll find out next year whether the tax on mine is £450 next year like currently or the new higher rate. Not sure if I can check now by attempting to renew the road tax or not.
Sent from my SM-G965F using Tapatalk
It's such a con in my opinion anyway - So you are in a position to afford a nice car which you pay out of your taxable income and wham let's have a little more off you - So does an S3 just under £40k cause less damage/omissions than one that's over £40k !!
You have faith in the system Adam.
You can check using this link https://www.gov.uk/check-vehicle-tax which will tell you how long the additional rate will be in force, but you can also check the current rate by clicking View tax rates and putting in your 11 digit reference number printed on your V5C
Correct.....this additional charge has nothing to do with CO2 emissions or the environment, it is purely a money making exercise by the government on people who they think should be able to afford it.
Oh no I know full well how HMRC work having had to learn tax rules through workYou have faith in the system Adam.
You can check using this link https://www.gov.uk/check-vehicle-tax which will tell you how long the additional rate will be in force, but you can also check the current rate by clicking View tax rates and putting in your 11 digit reference number printed on your V5C
I'll give that a go when I get home, cheers.
Sent from my SM-G965F using Tapatalk
Correct.....this additional charge has nothing to do with CO2 emissions or the environment, it is purely a money making exercise by the government on people who they think should be able to afford it.
£40k is on low side in my opinion for premium tax. To be fair if they set it at £50k you will get the rs guys having a moan.
All the tax was to do was catch out all the electric car drivers who was paying nothing. It was ok when it was just the Nissan Leaf and a few hybrids like the Prius but then the German trio jumped on the bandwagon cause diesel was so bad so government wanted a piece of that pie so thought £40k was a good number and it is a good number for them. A Prius is £30k+ so an equivalent merc/Audi/bmw has to be at least £40k. I’m just surprised that the manufacturers didn’t just start pricing the good spec cars at £39999 or there abouts.
Electric cars isn’t all that cracked up to be as well. All it’s doing is moving the pollution somewhere else out of the cities and towns.
Read this on another forum and if true then we are better off not embracing electric cars.
Attachments
Plus take in to account the fact that most electricity is still being produced by coal power stations pumping more CO2 out, also the fact that the batteries are just dumped/disposed of and aren't great for the environment as don't exactly breakdown.
Sent from my SM-G965F using Tapatalk
I can only imagine the repairs on these electric car when they go wrong. I remember a few years ago a Prius turned up at a friends garage with a fault. Car was out of warranty.
Code read the car and spoke with Toyota.
Battery was faulty so needs new battery. £7k+vat for batteries. Book time was like 100 hours to replace so even at £40 per hour it’s £4K. Something about body needs to come off the car to get to the batteries then there was diagnostics/calibration etc
Needless to say it was driven about as a 1.6 then scrapped and there’s not many specialist scrap yards that will recycle the batteries properly.
At least the Prius had a backup petrol engine. These all electric things once broken isn’t worth fixing.
This is the biggest Con going. The amount of energy to produce these electric cars, then the energy / cost of rolling out a national charge point system is far greater than the energy we produce building petrol / Diesel cars.
Then think of all the new power stations we'll need to build to cope with the electricity demand?
Electric cars are the next Diesel-gate in years to come.
The only people electric cars benefit are those who work for companies that are either building the cars, building the infrastructure, and the government in collecting taxes.
Plus, if all cars go electric. How does an enemy bring a country to it's knees? Knock out the power stations and the country can't be mobile.
What would really grate on me, is paying the extra VED and the vehicle is just marginally over the £40k max. When I bought my S3, I thought I have just gone over the threshold so I might as well really go for it because you don’t pay any additional charge. Now I have ordered an RS3, and I really went for it, happy days.
How can the price go up after you ordered ? The price agreed should be the price you pay . My daughter just ordered a TRoc with delivery expected Jan 2020 and price is fixed and agreed if any new tax is added (brexit) we can cancel and be refunded the deposit !
I wouldn't be happy about it either, but as you say you would be legally entitled to cancel with no penalty.
I have known in the past of dealers guaranteeing order prices, but this will be entirely down to their own discretion and will not be a common thing nowadays.
In your case with such a long delivery time there will almost certainly be 1 or more list price rises, so your dealer will have factored this in.
