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