You may have heard that last year the former chancellor George Osbourne had a rethink about how new cars registered from April 2017 would be taxed. Which has left many buyers asking the question wherever to buy now or wait.
Currently cars with CO2 emissions of 120 or less will fall in to the ‘low road tax’ bands A, B and C. With the A band being completely free to tax. From April, however only cars that emit no emissions what so ever will be free tax, so only fully electric & Hydrogen powered vehicles. For example, the current road tax on a 2016 Ford Fiesta 1.0 Zetec Manual is free. However, the same car registered from April 2017 onwards will now be £120 in the first year and then £140 a year there after. Costing £400 over 3 years of ownership.
I’m afraid it doesn’t get much better if you are lucky enough to be buying a car worth more than £40,000. As for you the first 5 years of ownership you will pay a supplemental charge of £310 per year. Again, for example, some of the most innovative and forward thinking electric cars from Tesla will now all cost £310 a year to tax even though they emit zero emissions.
So, if you are looking to buy a car with £0 road tax which runs on fuel the time may be now. As all cars registered prior to April 2017 won’t be affected. For the new rates please click here.
If you wish any advice and want to see how you may be affected. Just give us a phone on 01467 625 522.