Road tax hikes for most new car buyers

Seven out of 10 drivers are set to pay more tax under new VED (Vehicle Excise Duty) rules which come into force on April 1.

According to research by HonestJohn.co.uk, the majority of new car buyers will lose out, adding more than £500 to the long-term running costs of Britain’s most-popular and eco-friendly vehicles, while providing significant benefits for some of the most-polluting cars.

This means the UK’s best-selling car – the Ford Fiesta 1.0 EcoBoost 100PS – will cost £540 more to tax over four years, while buyers of the V8 Mustang stand to save £245 over the same period of time. This is despite the fact that the American muscle car emits three times more CO2 than the efficient Fiesta.

Until now, the government has offered zero VED to entice car buyers into eco-friendly vehicles. However, with 74% of new cars emitting less than 130g/km of CO2, the government has made a U-turn on its policy and introduced rules to force buyers of new, efficient cars to pay more.

Under the current tax rules, vehicles that emit sub-99g/km qualify for zero VED for the first year and pay nothing for every year after. From April 1, the government will replace the current 13 band tax system with three new bands – zero, standard, premium – plus a surcharge for electric cars with a list price above £40,000.

This means all new cars bought after April 1 with sub-99g/km CO2 emissions will pay for road tax – a move that will add up to £540 to the long-term running costs of some of Britain’s cleanest and most efficient cars.

Even hybrids won’t escape, with buyers of the Toyota Prius paying an extra £405 over four years, while Tesla S buyers will have to pay an additional £930.

Five popular cars hit hard by 2017 VED changes over four years of ownership…

1) Ford Fiesta 1.0 EcoBoost 100PS Zetec

Current VED cost over four years: £0
New VED cost over four years: £540

2) Vauxhall Corsa 1.3 CDTi 95PS ecoFlex Design

Current VED cost over four years: £0
New VED cost over four years: £540

3) Ford Focus 1.5 TDCi 120PS Zetec

Current VED cost over four years: £0
New VED cost over four years: £540

4) Volkswagen Golf BlueMotion 1.6 TDI 110PS

Current VED cost over four years: £0
New VED cost over four years: £520

5) Nissan Qashqai 1.5 dCi 110PS Visia

Current VED cost over four years: £0
New VED cost over four years: £540

The post Road tax hikes for most new car buyers appeared first on Automotive Blog.

from Automotive Blog http://www.automotiveblog.co.uk/2017/01/road-tax-hikes-new-car-buyers/
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