SORN/VED questions

psychopomp1

Member
Hi,
I will be travelling abroad next Sunday (28/2) as I’m starting a new job in the Middle East. I pay my car’s VED by monthly direct debit and next payment is due on Mon 1st March. I will be keeping the car off road in my garage whilst I’m away. I could continue paying the VED but it’s money down the drain since car won’t be used at all so planning to SORN it. Currently paying around £40 each month as car has a list value of > £40k.

Couple of questions:

1) If I declare SORN on Friday 26th online I guess the DVLA won’t be able to stop the direct debit due to come out on the 1st? In which case I’ll ask my bank to cancel the DD as in the past they’ve managed to cancel a DD 1 day before it’s due (BT). I don’t want to declare SORN on my car until I’ve got a negative PCR COVID test result (required to travel abroad) and the earliest this can be done is on Friday 26th. Otherwise I’m assuming if I was to declare SORN any sooner then it would take effect from that date despite having paid VED up until 28th Feb?

2) The car is currently on PCP but planning to pay off the outstanding finance a few months later (whilst still abroad) and then on my next return to UK (around 6 months) sell the car to a local showroom for cash. So I will need to tax it again in order to drive it to the dealer and for them to test drive it. So if I was to tax the car online on the 15th of the month (for example) and chose the monthly DD option, would the first payment be taken almost immediately or on the 1st of the following month? I’m guessing it would be immediately in order to cover the VED for that month and future payments ( if applicable)would then be on 1st of each month?

thanks!
 

IronGiant

Moderator
1) Whenever you declare SORN you will pay VED for that month. So long as you do it before the end of Feb, then you won't be charged for March. If the DD does go through then they should refund it, or perhaps send you a cheque.
2) I suspect that they would take the payment on or shortly after the 15th for the whole of that month. Theoretically you shouldn't need to SORN it as your VED should be cancelled as soon as you hand it over, but if they (the dealer) are slow to register that you could get a second month charged. Best thing would be for you to fill in the yellow section (transfer to motor trader) but do it online.
 

nvingo

Distinguished Member
2) The car is currently on PCP but planning to pay off the outstanding finance a few months later (whilst still abroad) and then on my next return to UK (around 6 months) sell the car to a local showroom for cash. So I will need to tax it again in order to drive it to the dealer and for them to test drive it.
If the subject car is coming up to 3 years old (don't know if it is) then it will require a MOT (which the dealer would normally do just before selling it); but if you booked it in for an MOT at the dealer's premises, you can legally drive it there without taxing it - even if it's covered by the current MOT/new car exemption.
 

psychopomp1

Member
Thanks guys. Sorry forgot to mention car is just over 1 year old so won’t require a MOT anytime soon. So upon my return, I’m guessing I will need to tax it for a whole month even if only driving to dealers to sell it? (1 mile or so).
 

LV426

Administrator
Staff member
Before re-taxing the car prior to (and for the sole purpose of) selling it to a dealer - you could talk to the dealer and see if they can and will examine it and take it away on "trade" plates.
 

psychopomp1

Member
Before re-taxing the car prior to (and for the sole purpose of) selling it to a dealer - you could talk to the dealer and see if they can and will examine it and take it away on "trade" plates.
Good idea but I’m fairly sure they will need to take it for a test drive first. Can they put trade plates on a car which they don’t legally own for the purpose of test driving it?
 

LV426

Administrator
Staff member
I believe so - but it won't cost anything to ask........

"Permitted uses
Trade plates are used for vehicles in the temporary possession of a business for
testing, trialling, demonstrating, delivering or dismantling."

 

mjn

Distinguished Member
If you’re going to sell it upon your return from abroad, why not sell it before you go?
 

psychopomp1

Member
If you’re going to sell it upon your return from abroad, why not sell it before you go?
I don't have the funds right now to settle the outstanding PCP finance, but will do so in a few months. Once I've sold the car, I will go back to work abroad (I will be getting leave every 4 months).
 

mjn

Distinguished Member
I don't have the funds right now to settle the outstanding PCP finance, but will do so in a few months. Once I've sold the car, I will go back to work abroad (I will be getting leave every 4 months).

Sell it and pay off the finance at the same time?
 

psychopomp1

Member
Sell it and pay off the finance at the same time?
But I thought I had to own the car BEFORE i could sell it? Or are you saying the buying dealer can settle any outstanding finance there and then?
 

mjn

Distinguished Member

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