Why now is the time to drive a hard bargain

BREXIT and fears about diesels and car tax are confusing motorists and keeping them out of showrooms. But brave buyers can find plenty of bargains in turbulent times…

SALES of new cars have slumped as motorists – worried about Brexit and a crackdown on diesels – stay away from showrooms. Sales of diesel cars have plunged 30 per cent so far this year, new figures from industry body the SMMT reveal.

This has contributed to an overall 5.5 per cent decline in new-car sales in 2018. Many former diesel drivers have switched to the new breed of downsized petrol engines. And sales of alternative-fuel vehicles have increased by nearly a quarter this year, to almost six per cent of the market.

New research indicates that a third of British motorists will continue to delay their decision to buy a new car. Of those holding back, 59 per cent blame a lack of clarity from the Government on the future of diesels. Brexit and concerns about the broader economy rank second in the list of buyers’ concerns in the research, conducted by industry analysts HPS Group and published in Autocar magazine.

The introduction this month of new ‘real-world’ testing procedures for fuel efficiency and emissions, and two recent changes to road tax (Vehicle Excise Duty, or VED) have contributed to an unprecedented period of turmoil for the auto market. But the industry’s desperation to make sales and to register certain models before the new testing regime kicks in means that buyers willing to commit now can take advantage of some deep discounts.

So what are the issues confusing buyers and keeping them out of showrooms? And if you’re prepared to venture in, what should you buy?

NEW FUEL ECONOMY TEST

THE EU introduced new fuel economy and emissions tests in response to the 2015 ‘dieselgate’ scandal. From September 1, all new cars sold in Europe must have been subjected to a new test called WLTP. But the regulations have been introduced so quickly that carmakers haven’t been able to subject all of their models to the new test, forcing them to drop some from their line-up, and either sell their remaining stock or pre-register them to themselves and sell them as ‘used’ cars after September 1.

These ‘pre-reg’ cars account for

many of the bargains currently on offer: find them by using one of the online sales portals, or simply call your local dealer. DIESEL BAN

LAST year, Chancellor Philip Hammond hinted that after years of encouraging low-CO2 diesels, the Government would turn the tax system against them. In April, a small first-year-only road-tax hike for diesels was brought in. The maximum increase is £500, but the average buyer will pay only an extra £40. Since then, the Government’s anti-diesel rhetoric has cooled.

There may be further road tax penalties for diesel cars but they won’t be applied retrospectively to cars registered now. And costconscious used-car buyers don’t seem concerned about diesels. Resale values for diesels are holding firm, with used sales up 3.2 per cent in the year to August.

So a new diesel may not seem such a bad bet, and you may decide to take advantage of the keen deals now available on slow-selling models.

ROAD TAX

THE Vehicle Excise Duty system got a major shake-up in 2017, and a smaller one this year, which brought in a small penalty for diesels. Low-emission petrol or diesel cars previously enjoyed road tax which was either free, or o just £20 or £30 per year. Now N all cars except electric e vehicles pay £140 per year after the first year, with a £310 supplement for the first five years for cars costing over £40,000. The most polluting cars have been hit with huge firstyear VED rates of up to £2,000, before reverting to the standard rates from year two. But VED rates aren’t likely to change again soon and vehicles will continue to be taxed at the rates in force when they were first registered. If the current rates favour the new car you want, buy now.

Or you might consider buying a used car registered before April 2017 if the earlier rates suit you better. Full details can be found at gov.uk/calculate-vehicle-tax-rates.