Are you owed a vehicle tax rebate? – MoneyMagpie
Motoring experts are warning UK drivers to take the necessary steps after selling their cars, after it was revealed millions of Brits could be missing out on money owed from the government in vehicle tax.
After people sell their cars, they are not claiming back vehicle tax, according to LeaseCar and LeaseElectricCar. Vehicle tax payments can range from £0 for fully electric vehicles to a staggering £2,605 annually, depending on the vehicle model.
Last year the most popular selling used car was the Ford Fiesta. The 2020 model has vehicle tax costing £155 per year – meaning motorists could be missing out on hundreds, or even thousands of pounds owed to them in tax refunds. Now, more than ever, claiming back money you are rightfully owed is important as the cost of living continues to bite.
Of course, the amount that can be claimed back depends on what car they have sold – age, make, model, and how long ago. After informing the DVLA that the car has been sold, drivers need to apply for a tax rebate as soon as they can to get the maximum of cashback possible. Only full months’ worth of tax can be claimed – so time is of the essence.
In 2022, almost seven million vehicles changed hands in the UK. Ford Fiesta topped the chart for the most sold used model of car. With automotive trade and creation restricted due to the pandemic and associated global lockdowns, the used car market has soared in recent years.
As a result of increased demand for second-hand cars, however, the price of used cars has increased. The shortage of new cars over the Covid-19 years meant people were looking to buy from others. In fact, in July 2022, the average sale price of a used car in the UK was up almost 20% on the previous year – sitting at a cool £17,173.
Tim Alcock from LeaseCar says:
“Any driver who has recently sold their car after paying road tax will be eligible for a refund from the government. If you’ve paid your road tax for a whole year yet sell the car after a couple of months – you will be eligible to receive most of the tax back into your bank account.
“It’s important to note that the DVLA tax refund only applies for full months, so it’s best to apply for your refund straight away to avoid missing out on any cash. After selling your car, drivers should inform the DVLA as soon as possible to ensure they get as much money back as possible.
“Before selling a vehicle, the logbook (V5C) should also be updated to reflect any change of name, address or modifications made to the car. Any details which are incorrect may prevent motorists from getting a tax rebate.
“Also, ensure to tell the DVLA that you’ve sold your car, and provide the full name and address of the buyer. Failing to do so may also stop you getting any money back.”