Changes to Denmark’s car registration duty will benefit luxury buyers most – The Post

Changes to Denmark’s car registration duty will benefit luxury buyers most

As well as cheaper new cars, a knock-on effect is expected in the used market

A new Ford Mondeo will cost about 5.5 percent less (photo: Biltorvet.dk)
November 22nd, 2015 6:35 pm| by Philip Tees

Thursday’s budget included a reduction to the registration duty on the sale of new cars from 180 percent to 150 percent and the used car portal Biltorvet.dk assesses that this will also have a knock-on effect on the used market.

The first 170,000 kroner of a new car’s price comprises a 105 percent duty and the price above this threshold is subject to the now-reduced registration duty, meaning that buyers of more expensive cars will benefit most from the new regime.

Cars that until November 19, before the new budget measures took effect, cost 270,000 kroner, such as the popular Citroën C4 Picasso family car, dropped by around 3.5 percent to 260,000 kroner. Whereas luxury models previously costing 1,000,000 kroner, for example the BMW535i xdrive, dropped in price by as much as 9 percent to 910,000 kroner.

According to Biltorvet.dk, the impact on the used car market will affect newer second-hand vehicles costing over 150,000 kroner, in other words those that are comparable to new cars. The savings here could be up to 5 percent.