One in 10 dealers are unaware of the VED changes due on April 1, according to a new survey from Cap HPI.

The study showed that 81% of dealers claimed they are fully aware of the VED changes, with 11% saying they aren’t and 8% are unsure.

Dealers also think that consumers don’t know about the taxation changes, with 93% saying consumers are unaware.

Philip Nothard, retail and consumer specialist at Cap HPI, said that it was essential that retailers brushed up on their knowledge as soon as possible. He said:: “Dealers should factor in how they will manage the used car market following the change.

“There will be vehicles in the advertising arena that will incur different annual VED rates, while the plate and year remain the same.

“It is entirely possible that ex-demonstrators from the new car department will not just have a variance to the annual VED rate of £140 or previous, but most importantly will attract the £310 per annum for the first 5-years of its life.”

The government’s taxation changes could provide a sales boost, Cap HPI believes, with 48% of dealers predicting sales in March will increase on 2016 as new car buyers attempt to avoid price rises more many categories of car which had previously benefitted from their low CO2 emissions.

Of the dealers surveyed by Cap HPI, 24% said sales wouldn’t increase, and 28% were unsure, however.

The used car market may also be impacted. While 53% of dealers expect no impact on used sales, 30% do anticipate an effect, and 17% are unsure.

Nothard said: “There are already signs of consumers starting to query late delivery orders falling out of March.

“Some dealers have reported requests for compensation, and it is clear that a set of mats and a full tank of fuel won’t work this time.

“Buyers need to be fully aware, if they are purchasing a new car currently, or have one on order, that these changes are effective from the 1st April, and the ‘List’ Price is as of the day before registration inclusive of options.”

The results of Cap HPI's survey, which included feedback from over 100 retailers: