1 in 10 Dealers are unaware of the upcoming VED changes
According to a recent report published by Cap HPI, 1 in 10 car dealers are not yet aware of the VED changes coming into play from April 1st. Indeed, Cap’s survey indicated that 11% of dealers who were asked admitted they had no idea about the changes, and 8% were “unsure” of the changes.
When further questioned, the dealers responded by saying that they are sure the public will not be aware of the changes either. Indeed, 93% of those surveyed reported that they thought customers would also be unaware.
Retail and consumer specialist at Cap HPI Phillip Nothard reported that it was important to make sure both dealers and customers are up to date on their knowledge of the industry and its upcoming changes, as it could impact their business decisions massively.
Nothard states that: “Dealers should factor in how they will manage the used car market following the change.
“There will be vehicles in the advertising arena that will incur different annual VED rates, while the plate and year remain the same.
“It is entirely possible that ex-demonstrators from the new car department will not just have a variance to the annual VED rate of £140 or previous, but most importantly will attract the £310 per annum for the first 5-years of its life.”
Cap reports that the taxation changes could result in a positive impact on the automotive market with a spike in sales. This can be further illustrated with the upcoming months predicted sale increase of 48% over that of last year.
It seems as though 2017 has seen new car buyers proactively seek to avoid price increases for cars that previously benefitted from low CO2 emissions.
Cap also asked in their survey whether dealerships thought that these changes would impact the sales of their company: 53% of those asked said that they expected little to change, whilst 30% said they are anticipating an impact on sales.
Nothard stated that: “There are already signs of consumers starting to query late delivery orders falling out of March…Some dealers have reported requests for compensation, and it is clear that a set of mats and a full tank of fuel won’t work this time.”
“Buyers need to be fully aware, if they are purchasing a new car currently, or have one on order, that these changes are effective from the 1st April, and the ‘List’ Price is as of the day before registration inclusive of options.”