New Road Tax (RFL) Rules. Are you up to speed?

There is a lot of disquiet about the lack of publicity over the new Road Tax/Road Fund Licence (RFL) rules coming in to play on 1 October 2014 (that’s just over one month!).  Essentially the new scheme is designed to move away from the use of a piece of paper (the tax disc) to show the RFL has been paid, to the use of electronic cyberspace to hold the information.  In this way electronic systems (Automatic Number Place Recognition ANPR) will ‘clock’ cars on the road and flag up if the car hasn’t got the RFL.

If a customer is buying a car from you they will need to buy RFL straightaway or risk a fine.  Payment will need to be made either on the DVLA website, on the phone or at a Post Office branch.  Dealers can use their laptops and PCs to their advantage here to ‘seal the deal’ by generously offering the use of a PC to tax the vehicle, the customer will hopefully be more committed to buy.  It’s a very straightforward process to renew RFL online.

If a customer is selling their car to you e.g. part exchange then the old practice of selling it with RFL has gone.  RFL cannot be transferred with the car.  DVLA must be notified of the sale and refunds of payment will be for any complete calendar months left for the licence period.  Savvy customers might haggle to get the date at the month end.

A big change for dealers will be the old practice of using a part exchange car with “a bit of tax on” as a loan vehicle.  You can check online with DVLA to see when a vehicle becomes untaxed.  It may be a good time to see whether you have enough trade plates to cover all eventualities in demonstrating vehicles.

Authors: Dennis Chapman

Published: 01 Sep 2014


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Steve Hall Cars Cornwall (28/09/2014)
Thanks Dennis, very helpful link to the Q & A session web chat. I have a feeling that there will be a lot of cars sold with tax remaining in October, but are registered as having a change of keeper on the 30th September...!! Not that I am thinking of doing this of course...
Steve Hall Cars Cornwall (26/09/2014)
Does anyone know if cars that were in stock and taxed before October 1st, can be sold with the Tax disc left on? In other words, DVLA have been notified already of a change of keeper via the V5C sent in, so I assume that these cars can be sold under the old system rules. One should never assume however!
SMJ Patton Direct Cars (19/09/2014)
From the information we have received,a buying customer cannot tax his new vehicle(in this case a secondhand car)using a remote platform such as internet.To enable this action to take place the vehicle keeper details must be unchanged,insurance in place and if required,a valid MOT as well. It looks like business as usual,the only change being that we will all have a stock of unused tax disc holders to recycle.

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