The Good News…
All cars that were registered before 1 April 2017 will remain in the current car tax system, which will not change. This means there has never been a better time to buy a used car. It could save you thousands of pounds in car tax over the coming years. All the top quality used cars currently for sale at Imperial Cars are unaffected by the recent Car Tax changes, as they have been registered before 1st April 2017.
The New Rules for Car Tax or Vehicle Excise Duty
The UK Government’s new Vehicle Excise Duty (VED) system is only for cars that are first registered from 1 April 2017 onwards.
Prior to April 2017, the annual car tax was pretty easy to understand and was based on CO2 emissions. A £10 discount rate also applied to Alternative Fuelled vehicles.
However, from April 2017 onwards things have changed for new cars:
There is now a “first year rate” (based on CO2 emissions) ranging from £0 for electric vehicles up to £2000 for vehicles emitting more than 255 g/km of CO2
From year 2 there are now 3 rates - £140 (Standard), £130 for Alternative Fuel and £0 for Zero Emission Vehicles (Electric)
Also, if your brand new car has a list price of over £40,000, you will now have to pay a supplement of £310 on top of whatever Standard Rate applies from year 2. This additional charge is for 5 years.
The First Year and Standard rates for the new car tax (VED) system are summarised in the table below:
Full details can be found on the UK Gov website.
Tax Savings on Used Cars - Real Examples
At Imperial Cars we have a huge range of used vehicles - low cost, very efficient models, highly rated family cars, and top end executive, luxury or sports cars. Nearly all of these vehicles will now save you on annual car tax too! Take a look at these examples and visit our website to find a great deal.
Check Out This Mini - save £680 over 5 years on Car Tax
This Mini Hatchback 1.5 Cooper D 3dr [Chili Pack] is currently for sale for only £9,702 and has CO2 emissions of 92g/km. Since it was registered in 2014, the annual car tax is £zero per year (Band A). If you go for a similar new car with the same CO2 emissions you will now have to pay a first year tax rate of £120, followed by a standard rate of £140 a year. So, this means you will pay £680 more car tax over 5 years if you buy new!
We have many used vehicles at Imperial Cars that have very low CO2 emissions, high MPG and are in Tax band A with £zero annual tax - just go to Find a Car and sort by Tax Band. Here you will find many makes and models - Mini, Ford Fiesta and Focus, BMW 1 Series, Nissan Qashqai, VW Golf, Audi A1 and A3, Mercedes-Benz A Class, Seat Leon, Vauxhall Insignia…
Even this excellent BMW 3 Series 320d EfficientDynamics Plus 4dr Step Auto with £1,625 of factory fitted extras - all with £zero annual tax!
Nearly New Mercedes-Benz C Class - save £1,675 over 5 years on Car Tax
How about this superb Mercedes-Benz C Class C63 4dr Auto which was registered in July 2015 and has only done 8,122 miles! It is currently on sale for £45,989 and has CO2 emissions of 192g/km. This car is in Tax Band J and the tax is £265 per year. If you went to buy a similar, brand new car with the same CO2 emissions you would have to pay a first year tax rate of £1,200, followed by a standard rate of £140 plus £310 a year. Over five years your car tax bill on a new car would be £3,000! So buy used at Imperial Cars and save £1,675 on car tax alone.
Any brand new executive diesel or petrol car with a new list price of over £40k will attract this huge increase in car tax. So before you buy new, take a look at the executive, luxury cars at Imperial Cars - you will not suffer the same levels of vehicle depreciation and you will now make significant savings on car tax.Go to the Imperial Cars website for top end executive cars - Find a Car and sort by price (highest first). From a Mercedes-Benz S Class S500 L AMG Line Executive 4dr Auto to a Aston Martin Vantage V8 or perhaps a Maserati Granturismo V8 S 2dr Automatic - we have a superb range, all now saving you on annual car tax.