The beginning of March marks the start of car buying season with drivers keen to snap up a motor with the new registration plates. Some dealerships reckon interest jumps by as much as 25 per cent in new registration months.
If you’re thinking about spending your cash on a new runaround, there’s a good reason to get a move on: the way that car tax is calculated is being revamped in April. For many motorists that will mean a bigger outlay.
How car tax is changing
At the moment, Vehicle Excise Duty (VED), or car tax, is determined by your vehicle’s emission levels. All cars are placed in bands from A to M; those with low CO2 emission levels (up to 100g/km) don’t pay a penny currently, while those with higher emission levels may have to pay up to £1,120 a year, at least initially.
However, from 1st April the VED you need to pay will not only be based on your motor’s emission levels – it will also take into account the list price of your vehicle.
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