Reply With QuoteYou’ll get a refund for whatever is lower - the rate when car first taxed or the second year payment.
I have searched online, but probably being quite dim and cannot seem to get an answer on this.
With a new car you must pay a usually quite expensive first year road tax AKA showroom tax.
If you sell the car, say 6 months later, would you get a refund for part of that chunky first year payment?
You’ll get a refund for whatever is lower - the rate when car first taxed or the second year payment.
YesOriginally Posted by Boss13
If the tax is say £550 then you would get nearly half back
Interesting, I don’t seem to have received anything back for a car I sold. I will call DVLA tomorrow to see what’s what I guess!
To follow up on this. I did call DVLA who asked me to write to them.
They eventually wrote back to say the refund due is nil.
I assume because the first year 'showroom' tax is not recoverable, although they did not elaborate as to why.
I sold my old Golf to a dealer and went online to confirm when and where I sold the car. As part of this task, it states any road tax refund would be made back to the original payment method. I paid on my debit card and received refund for each complete month that would not be used.
I think the first year rate is a higher one off, non-refundable, payment made by the dealer or manufacturer depending who is retailing the car.
As you can see the first year is very different to following years. (plus £390 on top second year onwards if car was £40k plus new)
Started out with nothing. Still have most of it left.
Yes despite telling the dealership I had disabled tax exemption and leaving the form they went ahead and taxed it, the refund came straight back to me.
I think this was the issue.I think the first year rate is a higher one off, non-refundable, payment made by the dealer or manufacturer depending who is retailing the car.
As you can see the first year is very different to following years. (plus £390 on top second year onwards if car was £40k plus new)
First year was a four figure sum and must get a different treatment.
Posted the update as the replies above suggested a refund is due. But it is not.
So what does a subsequent buyer pay after, say 6 months?
Suspect it's the reduced rate, so it's really a second taxation (not second year) rate...
Sorry, am I reading this correctly?
With a new car you have a higher first year tax, plus the £40k tax, plus the actual tax. Then in year 2 you have this new tax of £180 plus then the actual tax?
Wow if so, completely out of touch with this.
I had 4 refunds of car tax on new cars I had sold within the year of their first registration between 2020-2022
Automatically sent through from DVLA
That is good to know. I wonder why my letter then said zero.
Out of interest, how much did you get? I assume the large chunk of 'showroom tax' is gone anyway?
I had to hand my 7 month old Honda CRV back in June (new in November 2022) so I probably got four months worth of tax back .. First year tax £635 refund £51.66
It ranged with how many months I had had the car for.
The years road tax was in the region of £500 so if I had the car for 4 mts I got 2/3's of the £500 back.
The first registration thing you get nothing back on.
Thanks.
Just looked at it and although this car from year 2 onwards had a fee it may have been zero in year one due to being a hybrid. Only thing I can think of that explains it and having googled it appears to be the case.
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