Great timing / Price increase

[Sharpe]

First registration at £55 and 1st year VED at £680 for standard GTI are not part of the ‘list’ price. Delivery at £820? is. I’ve got a leeway of £1400 at current prices before hitting the luxury threshold, so hopefully ok! Sure a bog standard GTI will be over in a years time

[SRGTD]

Just remember if trying to keep under 40K the price you pay may be under the threshold but the price is based on the RRP at registration not what you pay.

Also remember that you can subtract a few things from the OTR price that VW quote to get to the 'list price' / RRP relevant for the 'luxury car' road tax threshold. I am pretty sure that you can subtract the new car registration fee (only £60ish I think) and the first year road tax (around £600 on a basic GTI?). I am less sure about the delivery charge (I can't find anything conclusive online), which would be significant as it can easily be £700 inc VAT.

I might be wrong but I think it’s the first year’s VED plus the new car registration fee that can be deducted but not the delivery charge.

I can remember these deductions from list price being discussed on the forum in the past for the purpose of determining whether or not the enhanced VED rate applies, so it would be worth using the forum advanced search facility - search on ‘Registration’ and restrict the search to the mk7 and mk8 forum boards and hopefully it’ll give you the answer / confirmation of the above.

[Gjm]

I thought that the P11D price that you can click to view on the configurator gives you the value used for tax purposes.

[P6GTD]

But is P11D not simply for HMRC calculation of taxable benefit on your salary?
Is that a different calculation to the “luxury car tax” figure.
I have no idea, but was just musing that they might not be the same thing as they are used in different contexts and by different government departments.

[Gjm]

But is P11D not simply for HMRC calculation of taxable benefit on your salary?
Is that a different calculation to the “luxury car tax” figure.
I have no idea, but was just musing that they might not be the same thing as they are used in different contexts and by different government departments.

Not sure, but P11D is the list price with delivery charge at point of delivery and does not include registration fee or first years road tax.

Looking at the Gov site it’s says that the additional tax is the list price before it is registered for the first time. To me they sound the same, but happy to admit I’m wrong if somebody more knowledgeable replies.

[joe6]

No definition of list price on dvla Web site but my take is that any cost where vat is added is a part of the list price. This is in line with other suggestions that first registration and ved are not part of the list price.

[Gjm]

Found a DVLA document, but it was on a JLR site so don't want to link directly to it, but if you do a Google search for "DVLA OOJ/16/046/1" you will come across it and it gives definitions of the list price.

To even further confuse it states that servicing and warranty are excluded from the list price when calculating the 40k threshold. So if you had added in the 2 service option (£299 or something like that), although just checking the New Golf and it doesn't give that option anymore in the configurators or I missed it, then that needs to be deducted as well.

So in summary as we have all surmised the list price is minus registration and first years road tax, and now minus servicing and warranty addons.

So on GTI with standard paint & no options, currently priced at £38,900, P11D £38,165, you have £1,835 to play with, or to allow for price increases, etc.

[Carlosfandango]

Just remember if trying to keep under 40K the price you pay may be under the threshold but the price is based on the RRP at registration not what you pay.

In the case of VW at least, what you say is incorrect. Two dealers have told me that VW will honer and guarantee the price at which you place your order, price increases between ordering and registration will not apply as long as a deposit of some kind has been payed.

[Dav3smith]

Just remember if trying to keep under 40K the price you pay may be under the threshold but the price is based on the RRP at registration not what you pay.

In the case of VW at least, what you say is incorrect. Two dealers have told me that VW will honer and guarantee the price at which you place your order, price increases between ordering and registration will not apply as long as a deposit of some kind has been payed.

Well in my experience I can assure you that I've been paying the Luxury vehicle tax on my car and I paid a few grand below the threshold but the list was over 40K, they may well honour the price but I don't believe it's in the hands of VW to decide who enforces the tax due on the vehicle. Go ahead and believe the dealers if you like but my real life experience is very different from that.

[Carlosfandango]

Just remember if trying to keep under 40K the price you pay may be under the threshold but the price is based on the RRP at registration not what you pay.

In the case of VW at least, what you say is incorrect. Two dealers have told me that VW will honer and guarantee the price at which you place your order, price increases between ordering and registration will not apply as long as a deposit of some kind has been payed.

Well in my experience I can assure you that I've been paying the Luxury vehicle tax on my car and I paid a few grand below the threshold but the list was over 40K, they may well honour the price but I don't believe it's in the hands of VW to decide who enforces the tax due on the vehicle. Go ahead and believe the dealers if you like but my real life experience is very different from that.

Ah yes, sorry, I now get what you’re saying, any price guarantee they offer would then be treated as a discount, and if the RRP increases over the tax threshold, the car, although still at the order price, would be subject to extra tax.