Dealers need to ensure they are aware of the new vehicle excise duty rates in order to avoid confusing customers.
“Many dealers are still not aware of the new VED rates which will be introduced from April 1,” said Sue Robinson, National Franchised Dealers Association director.
“This is a complex issue and it is vital that dealerships are able to clearly communicate the changes to consumers to avoid further confusion.”
New vehicles registered for the first time with the Driver and Vehicle Licensing Agency (DVLA) from April 1 will pay new first year licence rates based on carbon dioxide (CO2) emissions bands which are different from the ones currently in use.
In some cases, these fees will almost double.
For subsequent years and also if the registered keeper changes, a flat standard rate (SR) of £140 will apply.
In addition to the standard rate, all vehicles with a list price over £40,000 will also attract an annual supplement of £310 for the first five years.
Zero-emissions vehicles, not including hybrid, will not incur either the first year or standard rate.
“The NFDA has been in constant dialogue with the DVLA to ensure that this complex reform is introduced and communicated as smoothly and accurately as possible.
“However, there appears to be some confusion amongst dealers with some of them still not familiar with the changes,” said Robinson.
“We continue to urge dealers to consult our guidance documents and contact us or the DVLA if they need any clarifications.”
Further guidance on the new tax: