I can't get my new car due to coronavirus - will I have to pay more VED for it?

A buyer's new car has been stuck in a closed showroom since March and VED rates went up in April - will he have to pay the new higher rate?...

coronavirus car sales

I was due to take delivery of a new vehicle in the first week of April. The car should have been registered before the of March so that I didn’t have to pay the significantly higher VED car tax that was introduced for it from 1 April.  

However, the dealership closed on 23 March in line with government guidance on preventing the spread of Covid-19, and I’m not able to contact the dealership and I cannot find any information on whether I will now have to pay the additional cost when it re-opens.

If I have to pay the higher rate of VED I will not be able to afford to buy the car because I’ve had to take a cut in my salary due to the coronavirus outbreak. 

What’s the best way to resolve this situation? 

Fahid Vassi

What Car? says…

If the car wasn’t registered before April 1, the new rate of VED will be payable on it. However, in these difficult times we’d advise that you email the dealership to let them know the difficulty you’re going to have with the additional cost.

Car dealerships won't want to lose sales at present and are coming up with a range of solutions to help customers. Your dealer may be able to provide an additional discount or other solution, such as adding some of the extra cost onto the amount financed, so that you can still afford to buy the car. 

Although their showroom will be closed at present, they’re likely to have a small number of staff working from home responding to customer enquiries, so they should reply to you.

We’ve also heard that car showrooms may be among the first businesses to be allowed to open up again, possibly as soon as May 11, so you may be able to take delivery of the car soon. 

Are car showrooms open at present? 

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