The car-buying game is changing quickly. Vehicle tax bands have been altered, road tax discs have been discontinued, meaning more and more owners are getting caught out with overdue payments. Economic problems are meaning that more and more people are suffering from bad or poor credit ratings, and struggling to get dealers to trust them when buying a new car. The existence of the Internet means that car buyers are turning up to dealerships well-informed and already half sold on their eventual choice; 60% of them, in fact, value digital channels are their primary information source. With car manufacturing juggernauts like Volvo pledging to switch entirely to hybrid and electric cars by 2019, potential customers are now more preoccupied with environmental concerns than ever before.
Here are some key things that anyone thinking of buying a car in 2017 needs to be clued up on.
A New Generation of Road Tax Changes
The 1 April 2017 saw a complete reconfiguration of the vehicle tax bands, as a new set of rules over VED (Vehicle Excise Duty) came into effect. This new system holds significant implications for new car buyers and owners, as it means that some new cars have become significantly more expensive to tax, whilst others have become remarkably cheaper. And the prices depend considerably on the CO2 emissions of your new car.
In a nutshell, here’s what the modified regulations mean:
- most new cars will be subjected to a significant increase in their first-year tax demands. After this, an annual flat rate of £140 will apply.
- BUT, if you purchase an “alternatively fuelled” car (for example a hybrid, or something that runs on LPG or bioethanol), you’ll pay £10 less in your first year of tax, and then £130 every following year.
- current car owners don’t need to worry- no changes will apply, provided the vehicle was registered BEFORE 1 April, 2017.
- unlike the old system, the only cars that will be exempt will be those with NO tailpipe emissions- that means electric and hybrid cars only.
Displaying Your Road Tax
While the 2017 VED rate developments will affect a lot of motorists, the system for collecting and enforcing road tax will remain unchanged. In 2014, tax disc to be displayed inside your vehicle were rendered obsolete. Whilst this makes it harder for people to cheat the system and avoid taxing their cars (authorities now rely on number plate recognition) it also poses a difficulty for car owners, as it can be very easy to forget dates and let time run away with you. Without the tangible paper disc in view at all times, many owners are getting caught out forgetting to renew. The DVLA will send a reminder when you’re due for renewal, but this is by post and can easily get lost amidst the paperwork.
Things you can do to avoid getting caught out:
- Pay monthly, via Direct Debit: the benefit of an on-going payment means you don’t have to worry, but the downside is that you might suffer if you forget to stop it after selling or scrapping your car.
- – Make 6 or 12 month payments (bi-annually comes with a 10% surcharge, a one-off annual payment holds no extra fee).
- – Invest in a Road Tax card for your windscreen; the phrase “if it ain’t broke, don’t fix it” springs to mind. The regulations around tax disc changed because it was cheaper, not because car owners didn’t find them useful!
Fortunately, Road Tax Flipper understand this. Their booklet has the look and feel of the traditional tax discs, meaning it won’t look out of place on your windscreen, and comes with a bespoke adhesive holder that will stay put without marking the glass. The booklet is laminated on quality paper, will last for years and is incredibly easy to use; just flip it over every month and, for investing just a few pounds, you will ensure that you never miss a road tax payment, ever again.
Not only that, the Flipper has a handy slot above the tax details, which is perfect for business cards, MOT reminders, parking tickets, dealership info, or whatever else you need!
Buying a New Car is No Longer Limited to People With Good Credit Ratings
Gone are the days when, if you were declined by banks because of your financial history, you could give up hope of getting anywhere close to cars.
Companies like UltraCar understand that people fall on hard times, and that there are many reasons why people find themselves with an unhealthy credit rating, and thus a bad or poor credit score, which is not necessarily a true reflection of a person’s ability and reliability when making repayments. And the case of young people, it might not even be a case of bad credit- you may have no credit rating at all, if you’ve yet to leave education or get your first salaried job. No credit rating can make if difficult- maybe even impossible- to get a loan to buy your first car. UltraCar is committed to helping in both situations, by valuing the person- not the number.
They look at two factors:
1) Can afford the monthly repayments.
2) You are in some way traceable at your current address.
They are a specialist bad credit car leasing company, leasing new and used (no more than a year old) lease vehicles, to individuals and businesses for over a decade. The process is very simple; find out if you are eligible, and then their team of professional advisors will help you progress your application, and will stay with you the rest of the way.