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Coincidentally, I have just had a conversation with a chap at the DVLA about this very thing. As it stands, the first licence fee is a one time fee only paid upon registration. So when you buy a nearly-new car as a second keeper, the tax due upon purchase will be the standard rate for that vehicle whenever that is (even the day after registration), in your case CJ, £280 as it went up on 1 April. The seller will get a refund for unexpired tax based upon the standard rate, not on the first licence fee. So they will get an amount equal to £270 divided by however many full months are left. (Not £500 divided by...) However, under the new system introduced on 1 April, there is a bit of a fly in the ointment that the man in Swansea was unable to clarify: The new First Licence rates for some cars (those with CO2 of 100g/km or less) is less than the new Standard Rate (£140), so any refund due in year one, if calculated the same way, could mean a refund of more than the First Licence rate paid, which obviously isn't going to happen. But he didn't know what would happen. So that's still open for discussion in Swansea.

Never got the "buy it now" auction. I often have a look through them, Grade 5 - no mechanical report/or warning on "engine noise" that you can buy for Cap Clean money then your £500 fees on top are people really that desperate for stock? What also gets me is the grading on older cars, no condition report, but 5 dim lit photos of a black car from 6ft away is apparently "enough" information to make your own judgement on it.