I want to stay under £40k with my new car to avoid higher tax - are delivery charges included in the list price? | Ask Honest John

I want to stay under £40k with my new car to avoid higher tax - are delivery charges included in the list price?

I have settled on buying a a car which, with extras, is very close to the £40,000 list price. Obviously I want to stay just below that so I don't get hit with higher tax. My understanding is that the list price excludes certain items which appear in the "on the road price" - specifically that it excludes delivery charge, new vehicle registration fee, numberplates and fuel. However, the sales manager at BMW insists that delivery charges (over £700) are included in the list price. When I test drove a Volkswagen, the manager there also told the salesman that delivery was included in list price. Have car dealers had some guidance from HMRC? Do you know the definitive answer to the definition of list price?

Asked on 22 April 2018 by Michael Kaltz

Answered by Honest John

No, we've done some deep checking into this. All the base price excludes is first year showroom tax and first year registration fee. If everything else adds up to £40,000+, you get stiffed with £450 a year tax for five more years. German manufacturers are the worst of the lot over this. They give a price, then add delivery, add dealer prep, add numberplates and if that takes the price over £40k, you're stuffed.

Tags: road tax ved list prices

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