Millions of UK drivers could be owed money from the government for selling their cars but not claiming back the vehicle tax.
Motoring experts at LeaseCar.uk and LeaseElectricCar.co.uk are warning drivers to follow the necessary steps after selling their cars else miss out on a cash tax rebate.
Vehicle tax payments can range from £0 for fully-electric vehicles, up to £2,605 a year for sports cars, annually.
The most popular selling used car last year was the Ford Fiesta, with the 2020 model vehicle tax costing £155 a year.
This means that motorists could be missing out on hundreds or even thousands of pounds in tax refunds from the government depending on what car they’ve sold.
After informing the DVLA that the car has been sold, drivers need to apply for a tax rebate as soon as possible to get the maximum amount of cash back as only full months worth of tax is able to be claimed.
Last year almost seven million vehicles changed hands in the UK with the Ford Fiesta topping the chart for the most sold used models.
The used car market has soared over the past year, with Covid-19 lockdowns around the world restricting automotive trade.
The price of used cars also increased, as there was more demand for second-hand vehicles due to the shortage of new cars over the pandemic years.
Last July, the average sale price of a used car in the UK was £17,173 – which was up almost 20% compared to the year before.
Tim Alcock from LeaseCar.uk said: “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 log book (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 from getting any money back.
“To inform the DVLA after selling a car, and to apply for a tax rebate, click here”.
To find out more about what money you could be owed from the Department for Transport, head over to https://leasecar.uk/.
https://www.smmt.co.uk/category/vehicle-data/used-car-sales-data/
https://www.autotrader.co.uk/content/news/used-car-values-rising-2022
