With new car tax rules coming into place from April 1 and a significant increase in the amount new car buyers will have to pay on certain car models, you might want to think about ‘nearly new’, rather than ‘brand new’.

 

The way vehicle tax is calculated is changing for cars that are first registered with the DVLA from 1st April 2017. It won’t affect cars that are registered prior.

 

 

The changes have been brought in by former chancellor, George Osborne to reflect the fact most new cars have such low emissions that they end up paying no tax, this in turn costs the treasury millions.
The changes could result in many UK motorists paying up to hundreds of pounds more for their road tax.

 

According to a report conducted by consumer website, Honest John:

 

“Seven out of ten new car buyers will pay more road-tax from this spring as cars once considered ‘green’ are squeezed for more money.

Revised Vehicle Excise Duty tax bands on new cars bought from April 1, will add more than £500 to the long-term running costs of Britain’s most-popular and eco-friendly new cars.

By contrast, buyers of some of the most polluting and gas-guzzling vehicles will receive ‘significant benefits’ and could save up to £245 under new zero and standard tax bands

 

So, what rates can I expect to pay?

 

Vehicle tax for the first year is based on co2 emissions, after the first year, the following rates will apply:

 

  • 140 a year for petrol or diesel vehicles
  • £130 a year for alternative fuel vehicles (hybrids, bioethanol and LPG)
  • £0 a year for vehicles with zero CO2 emissions

 

For new vehicles that cost more than £40,000 (this is the list price of the vehicle before any discounts) the rate of tax is based on c02 for the first year.

 

After the first year, the rate depends on the type of vehicle (petrol, diesel, alternative fuel or zero emissions) and an additional rate of £310 a year for the next 5 years.

 

After those 5 years, the vehicle will then be taxed at one of the standard rates (£140, £130, or £0, depending on vehicle type).

 

You can check all vehicle tax rates here

 

Looking for a used car?

 

My Car Credit provide customer’s access to our own online used car ‘Stock Search’ facility, ‘My Car Search

Customers can search online via our website for used cars by post code, distance away, price, manufacturer, model, fuel and transmission type.

 

By using our stock search, My Car Credit will help you find the safest place to buy a car online. Our stock feed only consists of cars that are available from our network of ‘Trusted Car Dealers’. This means that all dealers are regularly vetted for their status with the Financial Conduct Authority (FCA) for their financial stability and customer service standards.

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