The Retail Motor Federation calls on the Government to scrap the VED refund changes
Wednesday, December 17th, 2008Paul Williams, the Chairman of the RMIF, has called upon the Government to reverse the new VED changes that come into force in January 2009.
From the 1st January 2009, dealers will not be able to apply for refunds on vehicles they have taken in a part exchange. Only registered keepers will be allowed to apply for refunds and as dealers rarely become the registered keeper they will be unable to reclaim this money.
This change is reported to cost the industry in the region of £70-£80m a year at a time when many dealers are finding trading very tough in the current economic climate.
Paul Williams said ” The new VED refund rules will remove a major income stream from dealers when they can least afford it”. Mr Williams predicted that dealers would have to recover the shortfall by staff cuts and went on to say ” All dealers will be affected by this and we will continue to communicate to Government how damaging the move could be, especially at this time”.
Of course when you part exchange your vehicle to buy a new one this will be an issue for consumers or small businesses, as if the dealer knows they will not be able to recover the VED refund, they may consider offering you less for your vehicle as a result.
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