From April 1, 2017 changes to road tax mean that any new car registered after this date will have different costs for VED. Depending on the value of the car and its CO2 emissions, you will pay a one-off fee in the first year, followed by a set fee for each succeeding year. It’s important to know that all cars registered before April 1, 2017 will not be affected by the new VED changes and will go by the old system of CO2 emissions. The old system will eventually be phased out; if you are looking at getting a new model, it is best to do so in the next couple of months.
For some drivers, particularly those who might have been previously exempt from road tax, the new VED changes will considerably affect their bank balance. If you are considering buying a new car, or if your current finance plan is due for renewal, we recommend getting a new or nearly-new car before April 1, 2017. By doing this, you will benefit from the older system of road tax, potentially saving you a lot of money over the next few years. Here are the key facts about newly-registered cars purchased after April 1, 2017:
For newly-registered models that cost under £40,000, the first year’s tax rate will vary considerably:
For all models in these categories and in between, the subsequent £140 fee a year applies. Even if a discount is applied by the dealer, the original list price if over £40,000 will still incur the new charges.
Currently, there are many popular models on the market with low emissions that are exempt from road tax – this will all change after April 1, 2017. Road tax for models such as the Ford Fiesta 1.0 T EcoBoost, the Nissan Qasquai N-Connecta dCi 110, and the Vauxhall Astra Elite 1.6 CDTi, will go from £0 to £400 over a three-year period. To make the greatest savings in fuel and tax with a low-emissions car, buy one before April 1, 2017 to benefit from the old road tax system.
At RMB, we have a great range of affordable used and nearly-new vehicles on offer that will be exempt from the new VED changes. We also have some excellent deals on zero-emissions cars under £40,000 that are a great long-term investment.
|Existing VED Costs||VED Costs from 1st April 2017|
|Model||co2||Year 1||Year 2/3||1st 3 Years||Year 1||Year 2/3||1st 3 Years||Difference|
|Toyota Aygo 1.0 Litre Petrol||108g/km||Free||£20||£40||£140||£140||£420||£460|
|Toyota Auris hatchback 1.8 Petrol Hybrid||82g/km||Free||Free||Free||£100||£140||£380||£380|
|Lexus RX 450h||120g/km||Free||£30||£60||£160||£140||£440||£380|
|Lexus CT 200h||94g/km||Free||Free||Free||£120||£140||£400||£400|
|Renault Clio Energy TCe90 S&S||99g/km||Free||Free||Free||£120||£140||£400||£400|
|Renault Megane TCe 130||122g/km||Free||£110||£220||£160||£140||£440||£220|
|Dacia Duster dCi 110 4x2||115g/km||Free||£30||£60||£160||£140||£440||£380|
|Dacia Sandero Stepway TCe 90||115g/km||Free||£30||£60||£160||£140||£440||£380|
|Ford Fiesta 1.0 EcoBoost 100PS (Petrol) 5 Speed||99g/km||Free||Free||Free||£120||£140||£400||£400|
|Ford Fiesta 1.0T||104g/km||Free||£20||£40||£120||£140||£400||£360|
|Ford EcoBoost 100PS (Petrol) 5 Speed||105g/km||Free||£20||£40||£120||£140||£400||£360|