Rav4 tax

[Willss]

Apologies if it's already been asked but can anyone recall when a 2wd Rav4 Design (with metallic paint) tipped over into the higher (first few years) road tax bracket.

Thanks!

[philip42h]

December 2023 - I think ...

• November 2023 - List (P11d Value) = £38,625 + Metallic paint = £645 => £39,270
• December 2023 - List (P11d Value) = £39,620 + Metallic paint = £645 => £40,265

Assuming that I've done my sums correctly and there aren't any other extras to consider ... 😉

[Willss]

15 minutes ago, philip42h said:

December 2023 - I think ...

• November 2023 - List (P11d Value) = £38,625 + Metallic paint = £645 => £39,270
• December 2023 - List (P11d Value) = £39,620 + Metallic paint = £645 => £40,265

Assuming that I've done my sums correctly and there aren't any other extras to consider ... 😉

Sums look good! Really appreciate you taking the time to post - useful thanks.

[Mike2222]

Making the assumption that you're in the market for a RAV4 but want to avoid paying the ved surcharge, and thus are limiting your search to FWD design models that don't breach the £40k limit, have you considered widening the search but factor in the additional cost to your purchase budget? 

 

ie a 2019 vehicle will only have 1 year of surcharge (currently £510) left to pay, regardless of trim level or FWD/AWD, 2020 - 2x (£1010), 2021 - 3x (£1520), and so on, and mileages and thus sticker price will vary quite a lot but the relax warranty will apply to any vehicle over 3 (or for early models, 5) years. 

 

Just something to think about, as time passes and depreciation works it's magic on the increasing number of vehicles coming into the 2nd hand marketplace, fixating on the concept of whether it has the surcharge or not may be arbitrarily limiting your choices where it doesn't have to.

 

Entirely depends on what other deciding factors you have on your shopping list, of course. 

[Nick72]

I find the tax situation complicated. I don't pay any of it as the company sorts it all out. But if I decided to keep the GRS PHEV in 3 years I have no idea what I'll be paying.

[Willss]

1 hour ago, Mike2222 said:

Making the assumption that you're in the market for a RAV4 but want to avoid paying the ved surcharge, and thus are limiting your search to FWD design models that don't breach the £40k limit, have you considered widening the search but factor in the additional cost to your purchase budget? 

 

ie a 2019 vehicle will only have 1 year of surcharge (currently £510) left to pay, regardless of trim level or FWD/AWD, 2020 - 2x (£1010), 2021 - 3x (£1520), and so on, and mileages and thus sticker price will vary quite a lot but the relax warranty will apply to any vehicle over 3 (or for early models, 5) years. 

 

Just something to think about, as time passes and depreciation works it's magic on the increasing number of vehicles coming into the 2nd hand marketplace, fixating on the concept of whether it has the surcharge or not may be arbitrarily limiting your choices where it doesn't have to.

 

Entirely depends on what other deciding factors you have on your shopping list, of course. 

Take on board what you're saying and thanks. Last couple of cars I've bought pre registered or 6-12 months old and then kept (current 2 will make it to just shy of 11 years (when the 10th year of their Relax warranties run out)). A 5 year old Rav4 with relatively low mileage would save me approx £6-7k over a 12-18 month old one which I'd get an extra 4 yrs use from. 

You'd love my spreadsheets (I'm sure I'm not alone in their preparation)!!!  Basically working out the average cost per year of ownership including depreciation etc. 2x 5yr old ones likely cost a few £k more than 1x 1 year old one.  Obviously assuming that I'll keep it that long. More frequent swapping and the maths adds up very differently I agree (I'm boring and am happy not changing). 

Also I like owning the same car for a while as I know it's been looked after - and hate the stress of car buying. 

Everyone's priorities and circumstances are different obviously. As it's nearly time to swap a 2023 makes more sense for me than an early 2024 (extra 6 months warranty not worth extra cost to buy plus £1600 tax (for me))!

 

[J2024IE]

road tax here in Ireland is €200 for the year on Rav4 HEV, same for the PHEV

[ernieb]

9 hours ago, Nick72 said:

I find the tax situation complicated. I don't pay any of it as the company sorts it all out. But if I decided to keep the GRS PHEV in 3 years I have no idea what I'll be paying.

I don’t know for sure but I think you’d be paying the elevated road tax as it’s linked with the cars original purchase price not the secondary value you might pay when you took ownership.

[Mike2222]

36 minutes ago, ernieb said:

I don’t know for sure but I think you’d be paying the elevated road tax as it’s linked with the cars original purchase price not the secondary value you might pay when you took ownership.

Yeah, it's for the first 5 years. Someone is paying it, regardless of whether privately owned or owned by a company. 

 

I used to get confused by the ved surcharge being referred to interchangably as the first 5 years vs "until it is 6 years old", so find it easier to think of as "the first 5 tax renewals", because I rarely consciously think about the 1st year VED charge, as in the UK this is incorporated into the sticker price. I am aware that in other countries the convention is different, ie "$30000, plus delivery and taxes", meaning eg $32000 or something like that. 

[GBgraham]

7 hours ago, J2024IE said:

road tax here in Ireland is €200 for the year on Rav4 HEV, same for the PHEV

No road tax in Greece for both the HEV and PHEV😊

[Willss]

In uk - assuming car (bought tomorrow) was built in Nov' 23 it would cost £950 for total of next 5 yrs tax.  If car was built in December 2023 it would be £3000 for next 5 yrs tax. 

£2050 extra tax if bought the wrong side of the cut off date (when car changed to costing more that £40k). Not the be all and end all but worth considering if there are 2 identical cars!!!

[Heidfirst]

3 hours ago, ernieb said:

I don’t know for sure but I think you’d be paying the elevated road tax as it’s linked with the cars original purchase price not the secondary value you might pay when you took ownership.

it's not purchase price but "list price" so even if you get a discount that brings your purchase price back under £40k the car is still liable for it.

 

[Strangely Brown]

1 hour ago, Willss said:

In uk - assuming car (bought tomorrow) was built in Nov' 23 it would cost £950 for total of next 5 yrs tax.  If car was built in December 2023 it would be £3000 for next 5 yrs tax. 

£2050 extra tax if bought the wrong side of the cut off date (when car changed to costing more that £40k). Not the be all and end all but worth considering if there are 2 identical cars!!!

My 2021 Excel AWD-i was first registered in May 2021. At that point the list price for the car was just under the £40k threshold for the additional tax. In June 2021 there was a price increase from Toyota and they also removed the "extended warranty" thereby reducing it from 5 to 3 years. I was fortunate to hit a bit of a sweet spot in that I got a car with a lot of the "early car problems" already addressed, a price that was beneficial in terms of VED and a better warranty.

Pretty sure the the VED robbery surcharge is based on List Price, so that includes factory options, but not dealer fit accessories and does not include any discounts that you may or may not negotiate. It applies to first registration and the following 5 years renewals regardless of owner.

[FROSTYBALLS]

The additional tax is based on the list price including factory options at first registration. 

Excludes any dealer fit options, and discounts on purchase price.

If the list price increases to over £40K between ordering and first registration, the car is liable for the additional tax.

The first year tax is based on emissions. The additional tax is payable for 5 years between year 2 and year 6.

[Nick72]

****. These are big numbers. Wrong side of the date, luxury car delta, etc. 

Only an issue for me if I decide to keep the car in 3 years.