New Tax Tax Bands Causang Thusands to ‘Rush and Ditch’ Used Cars – ryan

New Vehicle Excise Duty Rates, WHICH TAKE EFFECT THIS APRIL, ALONG WITH FALLING FOR ELECTRIC VEHICLE ARE NOW DESCRIBED AS ‘Perfect Storm’ for Fleets

Companies are reconsolationing their used to have to upcoming changes in Tax Tax Ved Rules.

As of April, New Vehicle Excise Duty (Ved) Rates will be implemented, coincidence with declining residual values ​​for electric vehicles (EVS), Creating a ‘Perfect Storm’ for Fleets.

Andrew Leech, Head of Mercia Fleet Management and Founder of Fleet Evolution, Said: “We are in a Very erratic market at the moment, with many businesses have to re-asses their strategies from two Viewpoints.

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“FIRSTLY, Fleet Managers Are Looking at the timing of the replacement of their fleets, especally those on Outright Purchase with a High Percentage of Evs.

“We are seeing Such Fleets Deferring Their Replacement Cycles and Staying Out of the Used Markets in the Hope Residual on Evs Will Improve. AS A Consequence, Some Turning to Short Rental to Plug any Gaps in the Fleet, Which Can Be Very Expensive.

“An Option is to flexibly introdes evs on subscription Rather than long term lease – especilly for Businesses with Seasonal or Contractual Requirements,” Said Mr Leech. Beginning in April 2025, Ev Owners Will Be Required to Pay Vehicle Excise Duty (Ved) – or Car Tax – for the first new rollers Introduced by the former tory government.

In Addition to Facing First-Yyar Showroom Tax on New Models and A Standard Rate thereaFter, Approximately 70% of Battery-Powered Models Will Be Subject to A Premium Tax of 410 on ‘Luxury’ Models for Five Years. Auto Express Has Slammed the New Labour Government’s Decision, Warning It Will ‘Create Cost Cost Barriers for Drivers Looking to Transition to Evs’ and Has Urged The Government The Luxury Tax on Electric Vehicles, Reports Birmingham Live.

In a move that shocked many, the autumn budget of 2022 Saw forms Chancellor Jeremy Hunt Declare that From 1 April 2025, Electric Cars Waul no Longer be exempt from Vehicle Excise duty in a bid to ‘make -motoring tax syrstem fairer’. This comes amid expectations that evs will will makeup half of all new sales from next year.

Auto Express Paul Barker Said: “Regardless of the Price Paid for A Used EV, the Car Will Be Liable if it was originally bought for more than £ 40,000 (The Current Level for the Ved), and the Vast Majority Are Going to Be Caught Up in this Extra Charge.” “

He Also Highlighted A Potential Pitfall For Second-Hand Ev Budyers, Saying: “Some Used Ev Budyers May Not Event About the Extra £ 410 A Year Cost Until the Tax Their Vehicles.

Private and Used Vehicle Uptake of Evs is not yet in a position to start adding cost barrier; More needs to be done to enCourage drivers to move to this Still-Fledgling Technology, not give another reason to hold off the shift. “