The Vehicle Excise Duty (VED) supplement on premium cars is putting some customers off purchases, according to Manheim.

Philip Nothard of Manheim

Introduced in March 2017, the £310 supplement applies to cars that cost more than £40,000 when new and, says Manheim, is catching some used buyers unawares.

In the latest dealer sentiment survey conducted by Manheim, 41% of dealers trading applicable vehicles say they’ve lost a deal due to the supplement. Almost one in five say they’ve had to adjust values downwards to compensate for the additional cost. Just 18% report experiencing no impact.

Manheim’s Philip Nothard comments: “£310 may sound like an inconsequential sum in comparison to the outright cost of a premium used vehicle but it’s apparently enough to be a barrier for some buyers. The impact of this is used dealers are having to review how they price and pitch 12-18 month old vehicles that cost over £40k when new, regardless of their value now.”