I was really taken aback by the discovery that my new BMW 120 incurs the UK government’s ‘luxury car tax’.
BMW is undeniably a premium brand, of course, and it’s well known that the threshold for the VED supplement is some £13k lower than it would be if Keir and co reasonably accounted for inflation, but still, this is the cheapest model in BMW’s cheapest series. I’ve always considered the ‘1er’ hatchback a fairly affordable luxury, but evidently no more.
Two things are exacerbating matters. First, this series is much slimmer than it once was: as the ‘F40’ made way for the ‘F70’ last year, it took both diesel engines and manual gearboxes with it (at least in the UK), instantly raising the entry price by some £2000; and going back several more years, we lost the 114i and 116i models.
Second, my car is not only in upper-level M Sport trim, some £2000 higher than basic Sport grade, but also has – get ready for it – fitted options totalling £10,415.
The mad thing is that none of them seem superfluous or even particularly extravagant for a car of this kind. It’s not the price that seems to bother most people about the F70, however. Rather, it’s the exterior styling. “It looks like a bloody Kia,” I’ve heard more than one person scoff. Okay, and…?
Most modern Kias look great to my eyes – certainly better than most recent BMWs. And perhaps that was inevitable with the 1 Series’ switch from rear-wheel drive to front-wheel drive back in 2019 (I’m still not over the revelation that the vast majority of BMW 1 Series owners surveyed by BMW didn’t even know why their cars looked and handled the way they did).
Join the debate
Add your comment
Crikey a £43k Kia!
I imagine most people would be as happy with a £24k Kia as they'd not notice the BMW hallmarks which are a little lost in this FWD BMW. Then again there are loads of them, and the 2 Series, driving around me in my 3 Series so the badge still works.
Most of the worst aspects of modern motoring in one package.
...and it’s well known that the threshold for the VED supplement is some £13k lower than it would be if Keir and co reasonably accounted for inflation
I don't know what the actual figure would be, but it's a good point that inflation has never been taken in to account with luxury car tax. Note, I say never rather than Keir and Co. They've had around a year from their 1st budget to address this issue, whilst the Tories had 6 years of failing to account for inflation.
Correct me if I'm wrong, but I don't recall ever reading May & Co. or Johnson & Co. or Truss & Co. or Sunak and Co. Yep, it's all Starmer's fault.
What ever anyone thinks about the luxury car tax and, the level at which it starts, it would have been very easy to stay below the threshold, by not going bananas with the options.
Yes, 'Keir and Co' have had a year to fix the mess, but what a mess. Let's not revise history by forgetting what a perilous state we were in.
The tax system is ridiculously complex, and this is true of cars as well. High time it was reformed.