Impact of Motor Tax rates on resale value

alanceltic

I am considering buying a bmw 520d in the new year and was originally looking at a 07 but I had myself convinced it was a better investment to pay the extra for an 08. Obviously the annual tax on the 08 is/was considerably cheaper and I reckoned that this would have a massive impact on the resale value in years to come.

Anyway im just wondering what peoples opinions are on second hand values of cars currently on the chea tax bands, should we expect to see a correction in these values and to what extent????

Anan1

From what i've seen, post 08 cars are overvalued relative to older ones. Add in the extra expense of maintaining DPFs and i'd buy a well-minded 07 every time.

ongarite

I'd be looking at an LCI 07 unless the difference between an 07 & 08 is quite close.
You would need to keep the car for a few years to make up the difference in road tax and the price would paid for the car.

shawnee

I would wait till the budget and you will get a better idea of the tax rates and their impact on prices

johnos1984

shawnee wrote: »

I would wait till the budget and you will get a better idea of the tax rates and their impact on prices

Or just wait until the Muppet is on the Toy Show this Friday to get an idea

alanceltic

alanceltic wrote: »

I am considering buying a bmw 520d in the new year and was originally looking at a 07 but I had myself convinced it was a better investment to pay the extra for an 08. Obviously the annual tax on the 08 is/was considerably cheaper and I reckoned that this would have a massive impact on the resale value in years to come.

Anyway im just wondering what peoples opinions are on second hand values of cars currently on the chea tax bands, should we expect to see a correction in these values and to what extent????

From what you have seen at the moment what is the price difference between 07 and 08s?

alanceltic

There seems to be a bigger price differential alright with the 08, hard to say exactly but its definitely higher and then u have ur dreamers looking for 20k plus... I deliberately held off thinking they would hit the tax. Are the filters that big a problem? And is it just from 08???

JHet

If anything the tax increase should have a positive effect in terms of leveling out the quite disproportionate difference between 07 and 08 cars. I think many would be surprised if they actually did the maths on the situation.

Blazer

There's about a 8K difference between 07/08.
I picked up a 07 one back in July and unless I was going to keep the car for 10 years at least it wasn't worth my while.

07 Tax price- €614
08: tax- €320 or €156 depending on the engine version.


So essentially you're saving about €450 a year on tax...over 10 years that's still only €4500 (pre budget) so definitely not worth my while.
Maybe add in €2-4K for difference in years and honestly? Not worth it...

briano1984

given the price at the moment for current tax on 520d must be around the 600 mark. if you were getting a bigger engine probably worth investing in an 08 but for the sake of a few hundred difference in comparison to a few thousand difference in the price of 07-08.

desperately hoping there isnt a hike in price of car tax, it's expensive enough as it is!!!!

Anan1

Remember also that the discrepancy only really applies to manual cars. If you don't fancy rowing your 520d along with a stick then the difference in motor tax is actually quite small.