Is Road Tax Included When Buying a Used Car in the UK?

Purchasing a used car in the UK involves numerous considerations, from evaluating vehicle history to understanding insurance requirements. One frequently asked question among buyers is whether road tax is included in the purchase of a used car. This article explores the nuances of road tax in the UK, what buyers need to know when purchasing a used vehicle, and other essential factors such as MOT inspections and vehicle documentation.

Understanding Road Tax: A Brief Overview

Road tax, officially known as Vehicle Excise Duty (VED), is a tax levied on vehicles used or kept on public roads in the UK. The amount of VED payable depends on several factors, including the vehicle's age, engine size, and CO2 emissions. All vehicles, except those exempted, must have valid road tax, which can be paid annually, bi-annually, or monthly.

Is Road Tax Included with Used Car Purchases?

One critical change in the UK’s vehicle taxation laws, enacted in 2014, dictates that road tax is not transferable with vehicle ownership. When you purchase a used car, any existing road tax is automatically cancelled by the DVLA (Driver and Vehicle Licensing Agency) upon notification of ownership change. This means that as the new owner, you are responsible for taxing the vehicle immediately before driving it.

The seller is entitled to a refund for any full months of remaining road tax, which is processed automatically by the DVLA once the sale is reported. Therefore, when buying a used car, you must factor in the cost of road tax as an additional expense on top of the purchase price.

Steps to Tax Your Used Car

1. Obtain the vehicle's V5C registration certificate (logbook), which should be provided by the seller.
2. Use the 11-digit reference number from the V5C to tax the car online, by phone, or at a Post Office branch that deals with vehicle tax.
3. Ensure the car is taxed before it’s driven on public roads to comply with UK law.

Other Key Considerations When Buying a Used Car

Vehicle History and Documentation

Understanding a vehicle's history is crucial when buying used. This includes checking past ownership, service records, and any recorded accidents or repairs. Websites like the DVLA’s online service allow you to verify details such as outstanding finance, mileage discrepancies, and previous MOT results.

MOT Inspections

An MOT certificate is necessary for vehicles over three years old to ensure they meet the minimum safety and environmental standards. Check that the used car has a valid MOT certificate and consider the time left until the next inspection is due. This will help avoid unexpected expenses soon after purchase.

Insurance Requirements

Before driving your newly purchased used car, ensure you have appropriate insurance coverage. Driving without insurance is illegal in the UK and can result in fines, penalty points, or even disqualification from driving.

Shop around for the best insurance deals and consider factors such as the car’s make and model, your driving history, and intended use of the vehicle.

Conclusion

In conclusion, road tax is not included when buying a used car in the UK due to legislative changes implemented in 2014. Buyers must tax their newly acquired vehicles before taking them on the road. Additionally, understanding a vehicle's history, ensuring it has a valid MOT, and securing insurance are all critical steps in the used car buying process. By being informed and prepared, you can ensure a smooth transition into ownership and enjoy your new vehicle with peace of mind.