tax disc promotion under fire

Auto Trader has attacked the DVLA for its failure to adequately promote the ending of road tax licences on 1 October and not explaining the implications for car buyers and sellers.

With the removal of tax discs neither dealers or private owners will be allowed to sell the unexpired portion of road tax with a used vehicle. The seller will receive a refund from the DVLA and the responsibility to tax anew will be with the new owner, in a process that will take place either online, over the phone or at a Post Office.

However, Auto Trader cites recent research from Money.co.uk showing 46% of the population did not know when the changes were being introduced, prompting the online classified giant to warn the DVLA about the detrimental impact that insufficient promotion will have on those buying and selling used cars.

Last week Trust Ford, one of the UK’s biggest dealer groups, formerly Ford Retail, said that many of its customers are still unaware of the changes and how it will affect them.

“A surprising number of our customers are telling us they’re either unaware of the change, or unsure of how it will affect them,” said John Leeman, TrustFord’s operations director.

“This is a very significant change to the way road tax will be administered by DVLA and the message from our 12,000 retail customers is that the communication has been, at best, low key,” said Sharon Randall, Auto Trader sales director.

“The changes affect 30 million motorists and if half are unaware that new rules are imminent, then we have a big problem. There is a real risk that transactions could be delayed and that dealers will be in the firing line when it comes to the consumer backlash.

“For the seller of a car like a Range Rover for example, nine months road tax adds more than £300 to the value of a car. But come October, this part of the retail buying landscape will be lost forever.”

As part of the changes, cars for sale on dealer forecourts will not have to be taxed. However, trade plates will be required for test drives.