1st April 2017 sees UK Road Tax changes which will affect all new cars registered after that date. Tax is significantly rising on many vehicle models and brands. In some cases the price rise is very high, so that buying a used car may well be the preferable choice for many drivers.
This is because the current road tax bands will not be changing for cars already registered. All the cars for sale at Imperial Cars are unaffected as they will all have been registered prior to 1/4/17.
Surprisingly some of the best selling models of Vauxhall Astra, Nissan Qashqai and Ford Fiesta will lose their current exemption from road tax if bought new after 1st April. Indeed in extreme cases some cars which are currently tax exempt will be charged almost £1,000 over three years.
Some Brief Notes on the Road Tax Changes
The current tax scheme is based on carbon dioxide (CO2) emissions. Cars emitting an average of less than 99g of CO2/ km are currently exempt. However after April 1st, this will apply to mainly electric vehicles with zero CO2 emissions.
Drivers of any other new car will pay £140 in tax each year, apart from the first year that it’s on the road, when tax will still be calculated on CO2 emissions.
New Cars with a ticket price of more than £40,000* will face a ‘wealth tax’ if registered after 1/4/17. Buyers could see a tax hike from say £390 to over £1100 per 3 year period for something like a Land Rover Discovery Sport. *This even affects new cars which are discounted, as the tax is based on the recommended selling price.
As an example a BMW 320d M Sport along with added extras could easily be over £40,000 New. With the new road tax rules this would be around £450 per year to tax for the first 5 years.By contrast a nearly new BMW 320d M Sport registered for example in 2016, would cost around £30 to tax per year. That’s a massive saving on the road tax alone! When you also consider that buying a used car means that you are protected from the initial depreciation of driving it fresh off the forecourt, you can see how attractive buying a used car from Imperial Cars really is! Find your next car on our website today!