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Vehicle Excise Duty on New Cars April 2017

Are you thinking of buying a brand new car in 2017?


April 1st 2017 and the Government are clawing back money through your road tax. It’s all change from April onwards, if you buy a new car. You will be paying a lot more for your road tax or vehicle excise duty (VED).


You could be paying £900 extra or more over the next 5 years. Most new cars are not paying their way and the Treasury are losing millions of pounds. Currently, the small economical cars are within the £30 VED tax bracket and these are the cars that will be suffering under the new scheme paying £140 a year at least.  The new cars that will be exempt from VED after April 1st will be electric or hydrogen cars but not if they cost over £40,000.


If you are considering buying a new car, compare the VED tables and calculate the changes to see if you are better off or not. However you do need to get in quick, as most new cars have a 16 week lead time which brings you to May already.


You might want to think about buying a used car instead. The VED will increase next year for used cars, as it increases every year, but not by the percentage increase you will see on new cars.


VED tax bands from 1st April 2017 onwards for new cars 


Emissions (g/km of C02)

First year rate

Standard Rate





































Over 255



Cars that cost over £40,000 pay £310 supplement for five years plus the £140 per year. This does include electric cars.


If you decide to lease a car, always ask how much the road tax is, otherwise it will just be added into your figure you have to pay which could be £1,000 extra!!


Just buy a used car........


Or for more information go to the DVLA website here.



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