There has never been a better time to purchase a used car than right now. The new car tax rules are coming into force at the start of April meaning that the cost of buying a new car is soaring.
Car tax changes April 2017
From 1 April 2017, buyers of new cars registered from this date must immediately pay a new CO2 emissions charge which is based on their new car's efficiency credentials. This means drivers could have to pay as much as £2,000 up-front. What's more, people who buy cars at a list price of more than £40,000 will also be subject to a tax of £310 per year for the first five years. That's all in addition to the car tax charges of £140 a year for most cars and £130 for alternatively fuelled cars such as electric or hydrogen cars.
Here's a table of how the charges are now and will be post April 2017:
Pre-April 2017 | Post - 1 April 2017 | ||||
CO2 emissions | First year rate | Standard rate | CO2 emissions | First year rate | Standard rate |
Up to 100g/km | £0 | £0 | 0g/km | £0 | £0 |
101-110g/km | £20 | £0 | 1-50g/km | £10 | £140 (£130 for vehicles using an alternative fuel source: hybrids, plug-ins, bioethanol and LPG) |
111-120g/km | £30 | £0 | 51-75g/km | £25 | |
121-130g/km | £110 | £0 | 76-90g/km | £100 | |
131-140g/km | £130 | £130 | 91-100g/km | £120 | |
141-150g/km | £145 | £145 | 101-110g/km | £140 | |
151-165g/km | £185 | £185 | 111-130g/km | £160 | |
166-175g/km | £210 | £300 | 131-150g/km | £200 | |
176-185g/km | £230 | £355 | 151-170g/km | £500 | |
186-200g/km | £270 | £500 | 171-190g/km | £800 | |
201-225g/km | £295 | £650 | 191-225g/km | £1200 | |
226-255g/km | £500 | £885 | 226-255g/km | £1700 | |
Over 255g/km | £515 | £1120 | Over 255g/km | £2000 | |
*From 1 April 2017, cars over £40,000 will also pay a £310 annual supplement for first five years. | |||||
According to Auto Express, buyers of smaller, more economical cars will face the biggest tax hike - in some cases more than nine times what they are currently paying.
These charges only apply to new cars registered after 1 April 2017, so if your car has been registered before then don't worry you will not be affected.
If you want to avoid having to pay these additional costs then now is a good time to consider buying a used car. We have a range of vehicles available - some as little as one to two years old with very low mileage - meaning you get all the modern features of a new car without the tax charges.
If you are thinking of upgrading your vehicle, then take a look at our range of low tax used cars available today.