Possible VRT change / Hot Hatch

.Longshanks.

After about 7 months window shopping (not finished yet ) I am tying to convince myself that I can afford the running cost of one of my modest dream cars – a ’05 – ’06 Golf GTI (done 25k KM last year & likely to continue). After plenty of calculator action I starting wondering about something; with the Green’s in power most people expect that there will be some change to the VRT and road tax system in this years budget.

So this got me thinking, compared to most ordinary cars (a focus 1.4 for eg) would a GTI be considered a dirty car with relatively higher emissions?

So if I was to get a GTI now and the VRT system changed in Dec to punish cars like a GTI (i.e. made them more expensive to buy), would this work in my favour by increasing (albeit slightly) resale valve after the budget?

Similarly, would you expect that the road tax might also increase?

Also, would you think dealers might counteract any increase in total sale price by removing a previously standard feature or something, to offset the increase?

Anybody got any thoughts?

MarkN

With our car prices as they are, I really can't see the government making them MORE expensive to buy after VRT - there would just be uproar.

If anything, they will apply a tax to petrol or road tax, I don't really have a problem with either of them but adding more taxes to the overall price of a car and I will personally organise a rally outside Leinster house

Back on your GTI, I did over 20,000kms in a MKV from Sept 2005 til July 2006 and I can't say it was that expensive to run. I got mostly a week out of a tank of juice, didn't have to change tyres, didn't need a service (and even when they do I don't think the initial services are anymore expensive than a 1.4 Golf.)

The cost, tax and maybe insurance are the main things that will cost you at the start but if a GTI is your dream car than I say you are a modest man and you deserve it !

Owen

MarkN wrote:

With our car prices as they are, I really can't see the government making them MORE expensive to buy after VRT - there would just be uproar.

Of course they will! They'll just be "Punishing cars that pollute the most", bullying car enthusiasts into putting up with humdrum cars, when the small minority of us who love fast, sporty cars will be penalised for our passion. If VRT existed in the UK there'd be a revolution, but Paddy sits down and takes it on the chin.

Henry Ford III

I'd expect any VRT/road tax changes to be "overall budget neutral".

However I'd expect hybrids, bio fuel and diesel vehicles to be taxed less and big petrol engines to be taxed more.

RobAMerc

Bertie said "We've all got to drive smaller cars lads" (While getting into the back of his new Merc ) so expect there to be some pain for the larger engined cars (Thats anything over 1.8 in Ireland) -
Would you consider that 1.4 TFSI or whatever its called (supercharged turbo one)? New one wouldn't be a whole lot dearer than a 2nd hand gti and a well spec'd one could look just as good!

.Longshanks.

MarkN wrote:

The cost, tax and maybe insurance are the main things that will cost you at the start but if a GTI is your dream car than I say you are a modest man and you deserve it !

When i say dream car - i'm being realistic. We can all dream of a M3 but thats simply a lotto win away for me:D

RobAMerc wrote:

Would you consider that 1.4 TFSI or whatever its called (supercharged turbo one)? New one wouldn't be a whole lot dearer than a 2nd hand gti and a well spec'd one could look just as good!

Yeah, i'd a test drive in a 1.4 170bhp GT and loved it. The torque is so impressive- it's virtually instant. But the current one simply looks like a standard golf. The version with the GTi(like) bumper and headlights - which sets it off from all other Golfs - is only out now. Not a chance of getting a used one. The 140bhp version is approx €27k new, with the 170bhp being €30k. '05 GTi's are making about €27-28.
Considering this, wouldn't you rather the GTi?

speedfreak

whats that they say about great minds thinking alike (or even fools seldom differ...) I was having this exact converstaion yesterday. I also reckon that used high(er) CO2 emission cars will benefit from the change to VRT/Road tax as proposed. Its true that it will be revenue neutral but that is to the benefit of new diesel/lower emission CO2 cars and the detriment of higher CO2 emission cars.

It will get rid of the ridiculous situation where for example the VAG 2.0 TDI can be 5k more than the equally pollutant 1.9TDI purely down to CC size. I reckon that because the new GTI will be more expensive to purchase post 01.01.08 this will have a positive impact on used residuals ( i hope!!). seems like a reasonable theory....

maidhc

speedfreak wrote:

It will get rid of the ridiculous situation where for example the VAG 2.0 TDI can be 5k more than the equally pollutant 1.9TDI purely down to CC size.

No, that is just VAG taking the piss really. There is only a 5% difference in VRT, something which Toyota et all have absorbed.

speedfreak

obviously difference depends on base price but its 5% of a difference that shouldnt be there. In the UK theres only about £1000 between A4 1.9 and 2.0

Tipsy Mac

Problem with the government is they don't yet grasp the concept that you could have one 2 litre car that will do 50mpg and you could have another that will only do 25mpg, there's some of them think a ton of feathers is heavier than a ton of steal.