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Re: M140 Offers for Q4 inc PCP costs

Posted: Wed Dec 13, 2017 10:51 pm
by TRL
MrTurner wrote:
Wed Dec 13, 2017 2:37 pm
Anyone know (or Tony if you're on), if the list price of the car/options increases in Q1 what happens to the price of the car ordered in Q4?

I'm being told that an order just under £40k will be taxed at the higher rate if the price increases in Jan and takes the car above £40k. I've told them to cancel the order so I can re-order in Jan (with Tony).
This one is a real bugger. We have been trying all sorts of ways to find a way around it. We thought that if we fully paid the car on behalf of the customer at the old list price it would prevent the car from being affected when it comes to taxing it. However it transpires that the list price AT THE TIME OF TAXING the car is what will be used. This info is supplied direct to the DVLA so the dealer cannot get around it.
I would suggest customers factor in around £1000 of headroom just to be safe.
The road tax and first reg fee don't count toward the list price (nor do dealer fit items such as LSD or MPE)
so on an auto you can currently go up to £40,550 and on a manual £40,850. if ordering for March then be mindful that last year BMW announced the
price increase in Jan for March 1st.... forcing customers in to taxing the car in Jan or Feb.

Re: M140 Offers for Q4 inc PCP costs

Posted: Thu Dec 14, 2017 7:41 am
by MrTurner
Thanks for the info Tony, a bit of helpful info for everyone. I'd be gutted taking delivery in March to find I'm now getting bummed for tax!

Re: M140 Offers for Q4 inc PCP costs

Posted: Thu Dec 14, 2017 7:43 am
by Ckpearce91
What’s going on with the Tax in March? I couldn’t find anything on another tax increase other than for new Diesel cars

Re: M140 Offers for Q4 inc PCP costs

Posted: Thu Dec 14, 2017 9:33 am
by MrTurner
Ckpearce91 wrote:
Thu Dec 14, 2017 7:43 am
What’s going on with the Tax in March? I couldn’t find anything on another tax increase other than for new Diesel cars
Nothing is changing with the tax. If the RRP of the car exceeds £40k then you're taxed at a higher rate. If you order now and the RRP is £39,999 but there's a price increase at BMW taking it to £40,001 then you're paying the higher tax.

Not many will be affected, and all will be clear first week of Jan when BMW resets the pricing for Q1 2018. If you have an order in the pipeline now, and it's well under £40k it should be fine. Also if you have an order now that will be affected, there is the option to get the car taxed in Jan/Feb and not have the 18 registration.

Nothing changes in terms of how this has worked all year but there might be some who are waiting for the 18 reg who could be affected, and it's only a could as BMW do not announce prices until 1st month (although that might be later in Jan being that it's holiday season).

Re: M140 Offers for Q4 inc PCP costs

Posted: Thu Dec 14, 2017 10:02 am
by RJW_1989
MrTurner wrote:
Thu Dec 14, 2017 9:33 am
Ckpearce91 wrote:
Thu Dec 14, 2017 7:43 am
What’s going on with the Tax in March? I couldn’t find anything on another tax increase other than for new Diesel cars
Nothing is changing with the tax. If the RRP of the car exceeds £40k then you're taxed at a higher rate. If you order now and the RRP is £39,999 but there's a price increase at BMW taking it to £40,001 then you're paying the higher tax.

Not many will be affected, and all will be clear first week of Jan when BMW resets the pricing for Q1 2018. If you have an order in the pipeline now, and it's well under £40k it should be fine. Also if you have an order now that will be affected, there is the option to get the car taxed in Jan/Feb and not have the 18 registration.

Nothing changes in terms of how this has worked all year but there might be some who are waiting for the 18 reg who could be affected, and it's only a could as BMW do not announce prices until 1st month (although that might be later in Jan being that it's holiday season).
could someone put this into " simpleton speak " for me please i just dont really understand whats going on with the tax next year....is it right, for example if both me and my mate went into a dealership and both bought a 140 he specced his to 41 grand or whatever and i specced mine to 38 grand ... would he be paying £450 a year road tax and i wouldnt ? is that how it works i dont understand haha

Re: M140 Offers for Q4 inc PCP costs

Posted: Thu Dec 14, 2017 12:19 pm
by KenC
Yes, that is exactly how it works.

Re: M140 Offers for Q4 inc PCP costs

Posted: Thu Dec 14, 2017 1:49 pm
by RJW_1989
KenC wrote:
Thu Dec 14, 2017 12:19 pm
Yes, that is exactly how it works.
thats all i needed cheers haha......... what an absolute garbage rule that is though , 4 year PCP on a 40 odd grand car youd pay £1800 in road tax in a country that already taxes you through the nose for fuel etc is a joke .... i wouldnt mind if the road surface was kept decent but it isnt , its crap and all they do is spend the money on stupid cycle super highways for 3 cyclists a year to use its a joke

Re: M140 Offers for Q4 inc PCP costs

Posted: Thu Dec 14, 2017 5:14 pm
by jallen
RJW_1989 wrote:
KenC wrote:
Thu Dec 14, 2017 12:19 pm
Yes, that is exactly how it works.
thats all i needed cheers haha......... what an absolute garbage rule that is though , 4 year PCP on a 40 odd grand car youd pay £1800 in road tax in a country that already taxes you through the nose for fuel etc is a joke .... i wouldnt mind if the road surface was kept decent but it isnt , its crap and all they do is spend the money on stupid cycle super highways for 3 cyclists a year to use its a joke
Money raised by vehicle excise duty is not ringfenced for maintaining roads. It is treated as general funds and therefore pays for the NHS and the full range of public services.


Sent from my iPhone using Tapatalk

Re: M140 Offers for Q4 inc PCP costs

Posted: Thu Dec 14, 2017 5:36 pm
by ASB1960
jallen wrote:
Thu Dec 14, 2017 5:14 pm
RJW_1989 wrote:
KenC wrote:
Thu Dec 14, 2017 12:19 pm
Yes, that is exactly how it works.
thats all i needed cheers haha......... what an absolute garbage rule that is though , 4 year PCP on a 40 odd grand car youd pay £1800 in road tax in a country that already taxes you through the nose for fuel etc is a joke .... i wouldnt mind if the road surface was kept decent but it isnt , its crap and all they do is spend the money on stupid cycle super highways for 3 cyclists a year to use its a joke
Money raised by vehicle excise duty is not ringfenced for maintaining roads. It is treated as general funds and therefore pays for the NHS and the full range of public services.


Sent from my iPhone using Tapatalk
If my cynical memory is correct a number of these duties and taxes did (and some perhaps still do) have a modest amount ringfenced. This enabled the claim to be made abou how it was for the roads/nhs etc.

Of course the claim doesnt survive serious scrutiny.

Re: M140 Offers for Q4 inc PCP costs

Posted: Thu Dec 14, 2017 8:00 pm
by RJW_1989
ASB1960 wrote:
Thu Dec 14, 2017 5:36 pm
jallen wrote:
Thu Dec 14, 2017 5:14 pm
RJW_1989 wrote:
thats all i needed cheers haha......... what an absolute garbage rule that is though , 4 year PCP on a 40 odd grand car youd pay £1800 in road tax in a country that already taxes you through the nose for fuel etc is a joke .... i wouldnt mind if the road surface was kept decent but it isnt , its crap and all they do is spend the money on stupid cycle super highways for 3 cyclists a year to use its a joke
Money raised by vehicle excise duty is not ringfenced for maintaining roads. It is treated as general funds and therefore pays for the NHS and the full range of public services.


Sent from my iPhone using Tapatalk
If my cynical memory is correct a number of these duties and taxes did (and some perhaps still do) have a modest amount ringfenced. This enabled the claim to be made abou how it was for the roads/nhs etc.

Of course the claim doesnt survive serious scrutiny.
thats fine but at least make it look like some of the tax money is spent on the roads haha , potholes on main roads have cost me 2 alloys .... eventually the council footed the bill but the fact remains our roads should be in better nick with the amount of tax thats paid in the country

Re: M140 Offers for Q4 inc PCP costs

Posted: Fri Dec 15, 2017 9:33 pm
by MrTurner
RJW_1989 wrote:
Thu Dec 14, 2017 10:02 am
MrTurner wrote:
Thu Dec 14, 2017 9:33 am
Ckpearce91 wrote:
Thu Dec 14, 2017 7:43 am
What’s going on with the Tax in March? I couldn’t find anything on another tax increase other than for new Diesel cars
Nothing is changing with the tax. If the RRP of the car exceeds £40k then you're taxed at a higher rate. If you order now and the RRP is £39,999 but there's a price increase at BMW taking it to £40,001 then you're paying the higher tax.

Not many will be affected, and all will be clear first week of Jan when BMW resets the pricing for Q1 2018. If you have an order in the pipeline now, and it's well under £40k it should be fine. Also if you have an order now that will be affected, there is the option to get the car taxed in Jan/Feb and not have the 18 registration.

Nothing changes in terms of how this has worked all year but there might be some who are waiting for the 18 reg who could be affected, and it's only a could as BMW do not announce prices until 1st month (although that might be later in Jan being that it's holiday season).
could someone put this into " simpleton speak " for me please i just dont really understand whats going on with the tax next year....is it right, for example if both me and my mate went into a dealership and both bought a 140 he specced his to 41 grand or whatever and i specced mine to 38 grand ... would he be paying £450 a year road tax and i wouldnt ? is that how it works i dont understand haha
Yes, but timeline wise:
Order today and the car is £38k - tax is £140pa
BMW increase the RRP of the car tomorrow and it is now £41k
Car is built then taxed
Your tax will be at the higher rate. Your car will still be financed at the £38k as toy have a contract for that but tax is calculated based on the RRP at the time it is taxed, not ordered.