[appmacguy]

Budget is set for 12th March staring at 12.30. A little over 5 weeks to wait and see if the government will encourage us all to go a little greener with our car purchases.

[Kimmy2000]

Cool, its earlier than I expected Thought is would be revealed @ the begining of April But I normally never pay much attention to things like that, so what do I know

So we will know on the 12th of March if the price cut will be relaity or not?

Kimmy

[appmacguy]

Quote: Originally Posted by Kimmy2000 (original)

Cool, its earlier than I expected Thought is would be revealed @ the begining of April But I normally never pay much attention to things like that, so what do I know

So we will know on the 12th of March if the price cut will be relaity or not?

Kimmy

Well it wont be a direct price cut. It will (if at all) come in the guise of lowered VAT rate at point of purchase, say 5% would be nice.

A cash back incentive dependent upon the level of CO2, for example: Cars that omit under 130g/km CO2 £500, under 120g/km CO2 £1000, under 110g/km CO2 £1500 and under 100g/km CO2 £2000. BUT the 130g probably wont happen as radical incentives are needed and too many cars may fall into this like the petrol cooper.

or something else I have not thought of.

[dlpruk]

My prediction is a duty cut on diesel fuel to promote fuel efficiency in cars and reduce UK haulage costs.

(Not that I have any interest in diesel, of course!)

[Kimmy2000]

Quote: Originally Posted by appmacguy (original)

Well it wont be a direct price cut. It will (if at all) come in the guise of lowered VAT rate at point of purchase, say 5% would be nice.

A cash back incentive dependent upon the level of CO2, for example: Cars that omit under 130g/km CO2 £500, under 120g/km CO2 £1000, under 110g/km CO2 £1500 and under 100g/km CO2 £2000. BUT the 130g probably wont happen as radical incentives are needed and too many cars may fall into this like the petrol cooper.

or something else I have not thought of.

Yeah I meant a VAT cut, which kinda works out as a price cut

Eitherway, a cut in anything to do with buying and running of cars is a plus for me

Kimmy

[Stiggy]

Quote: Originally Posted by dlpruk (original)

My prediction is a duty cut on diesel fuel to promote fuel efficiency in cars and reduce UK haulage costs.

Cutting the duty on diesel would mean that cars/vans/trucks that guzzle diesel are rewarded!

A VAT cut on super low emission cars makes sense as it encourages people to buy those kind of cars in the first place.

[appmacguy]

Quote: Originally Posted by Stiggy (original)

Cutting the duty on diesel would mean that cars/vans/trucks that guzzle diesel are rewarded!

A VAT cut on super low emission cars makes sense as it encourages people to buy those kind of cars in the first place.

I agree with Stiggy, reducing duty on diesel will mean happy 4x4 drivers with 180g/km CO2. The VAT cut is a great idea but the government may be harsh and only give it for under 100g/km CO2 cars. Manufacturers would have an incentive sales wise to hit this target and the government wouldn't lose loads of money just yet in duty.

[airbusA346]

I can for some reason see them only awarding the as mentioned above 100g/km CO2 cars.

[Amo]

I personally do not want this VAT cut to happen in the next budget. (this is only based on my situation as normally I would be all for it!)

I bought my Dooper last year - the main reason for me buying it was its low emissions (hence low tax) and super fuel economy (it is more green than than a Prius and is more fun ).

If they bring in this duty cut then the price of a new Dooper falls by about a grand and so does the second hand value of mine. So in effect I am losing out financially for making a 'green' decision 6 months before the government decided I should be.

Again, this is only my view based on my circumstances - if I was buying a Dooper this year I'd obviously be very supportive of a tax cut on Doopers

[Stiggy]

Quote: Originally Posted by Amo (original)

If they bring in this duty cut then the price of a new Dooper falls by about a grand and so does the second hand value of mine.

I'm sure we've had this discussion before. You don't pay VAT on second hand cars anyway; that's one of the reasons there is such a big depreciation at first. Unless you are planning to sell a Dooper less than a year old I don't think it will be a problem.

My Dooper is automatic, so the low-carbon discount probably wouldn't apply to me anyway!

[Amo]

Quote: Originally Posted by Stiggy (original)

I'm sure we've had this discussion before. You don't pay VAT on second hand cars anyway; that's one of the reasons there is such a big depreciation at first. Unless you are planning to sell a Dooper less than a year old I don't think it will be a problem.

My Dooper is automatic, so the low-carbon discount probably wouldn't apply to me anyway!

Sorry - I didn't mean to repeat what has been said already about VAT on second hand cars!! But I can't help but agree with minicabrio that if it is cheaper to buy a new Dooper then surely the second hand price would drop accordingly (supply and demand stuff!)

Of course you're right Stiggy - I don't plan on selling my Dooper anytime soon

[Stiggy]

Quote: Originally Posted by Amo (original)

Sorry - I didn't mean to repeat what has been said already

Don't worry about it. I think there will be a lot of 'fear, uncertainty and doubt' and until the budget is actually announced.

The people who are really worried are those who have ordered a Dooper for arrival in the next month or so!

[appmacguy]

They may even backdate this to keep people happier. But in life things never are fair and I have been caught out with one thing and another, that's the way it is.

We need to be encouraged to help the environment and this would be a start.

[Amo]

Quote: Originally Posted by appmacguy (original)

We need to be encouraged to help the environment and this would be a start.

I quite agree. With fuel prices going up and road tax now being based on emissions, people are being forced in to making more environmentally sound choices when buying a car (maybe that's the only way to make some people see - I don't know).

I personally love seeing people jaws drop when I tell them my tax only costs 35 quid!!

I think it's great that BMW/MINI are taking the initiative in helping people to do this.

[sav112]

Quote: Originally Posted by Amo (original)

Sorry - I didn't mean to repeat what has been said already about VAT on second hand cars!! But I can't help but agree with minicabrio that if it is cheaper to buy a new Dooper then surely the second hand price would drop accordingly (supply and demand stuff!)

Of course you're right Stiggy - I don't plan on selling my Dooper anytime soon

Got to say I’m not in a hurry to look at Doopers till this is announced, looks like there will be a reduction on Vat for new cars so expect the same with second hand prices going down.


Lets face it BMW will probably have know what the outcome will be and sales can only be helped if the coopers D once priced at 16-18K all of a sudden becomes 13K-15K. BMW don’t loose anything as how many D are on the forecourt – not many second hand, every one I’ve seen still says Qualifies for V.A.T….


The only shame is Customers loosing in the Value of there car, But lets face it they have lost the V.A.T Value the Minute the drove it out the door.

[appmacguy]

Quote: Originally Posted by sav112 (original)

Got to say I’m not in a hurry to look at Doopers till this is announced, looks like there will be a reduction on Vat for new cars so expect the same with second hand prices going down.


Lets face it BMW will probably have know what the outcome will be and sales can only be helped if the coopers D once priced at 16-18K all of a sudden becomes 13K-15K. BMW don’t loose anything as how many D are on the forecourt – not many second hand, every one I’ve seen still says Qualifies for V.A.T….


The only shame is Customers loosing in the Value of there car, But lets face it they have lost the V.A.T Value the Minute the drove it out the door.

You have some really great points there. VAT is generally lost once driven off the forecourt for private buyers. The other thing is dealerships claim VAT back when they sell a car on if registered to the dealership (1st owner). At what point do businesses claim the VAT back, will they lose out if they buy it at 17.5% VAT as a demo and sell it on at 5% VAT. I'd love to know if anyone has the answer to this.

[paulsavage]

There is already Goverment relief on low C02 cars for businesses and the self employed which enables you to offset 100% of the car's cost against tax .

This great tax break stops at the end of March 2008 so I can see the goverment replacing it with a lower rate of VAT as this would encourage a different sector of people to buy low C02 cars.
To them its all about encouraging more C02 cars into the market without actually giving away to much money.

[Yoastie]

I really still struggle to see how VAT can be lowered. The 17.5% rate is for "luxury items". A car - any car - strikes me as an example of that. The 5% rate is reserved for food and things. I'd be very, very surprised if the government decides to class cars at the same importance as food.

There might be something to appease lorry drivers, but they haven't been protesting as yet (nor have we, even though the prices have gone up by about 35%...).


Anyway, we'll see what happens...

[sav112]

Thing that helps me with this is that we all know the government and especially when they have a bee in there bonnet! And right now the whole green issue and getting the motorist to do there bit the Government is on the war path.

Rational reasoning goes out the window –just add a dash of over paid ministers and bingo.

The way the manufacturers are very interested in Co2 all of a sudden suggests there is more to this.

[ViscountCharles]

Quote: Originally Posted by paulsavage (original)

There is already Goverment relief on low C02 cars for businesses and the self employed which enables you to offset 100% of the car's cost against tax .

This great tax break stops at the end of March 2008 so I can see the goverment replacing it with a lower rate of VAT as this would encourage a different sector of people to buy low C02 cars.

Oh, great.

I decide that I need a new car. I decide on a Clubman Cooper S. THEN I find out about the HUGE savings that a Clubman D would deliver - not just a bit of road tax and quite a lot of fuel savings, but the MASSIVE advantage to me as self-employed of the 100% tax offset.

THEN some spoilsport tells me that the Government are stopping this a few weeks earlier than by earliest possible delivery date (bearing in mind that I need to sort out where the cash might be coming from, then want to spec up *my* choice of what's on the car, and that's NOT going to happen in time for a March 31st registration). Oh, woe is me.

Still, unless the Government extend the tax offset scheme or do something else to make the D really attractive, I should be in a Clubman S by the summer!