Have you heard about the new VED changes for 2017?
With manufacturer’s reducing CO2 emissions of lots of cars, thousands of people have been enjoying paying little to zero annual road tax. It was costing the treasury millions, especially given that cars with less than 100g/km of CO2 were free from VED all together.
Chancellor of the Exchequer, George Osborne, decided to make a change so he
updated the system for VED, with the changes coming into effect on the 1st
April 2017. Cars registered on or after this date will be subject to the new
fees, which are likely to cost more for most drivers in the UK.
From 1st April onwards, drivers will have to pay the first year of VED based on their car’s CO2 emissions which are, for the most part, higher than the current charges. Only zero-emissions cars like electric, hybrid and hydrogen models, will be exempt. It’s estimated that 70 percent of drivers will pay more.
After the first year, there will be a flat rate annual fee of £140 for all cars. Those costing over £40,000 will have to pay an additional £310. Even if a dealer offers the car with a deal, making it under £40,000, it will still be decided on the original retail price. The same occurs if you buy a car for less than £40,000 but the optional extras take the price over the threshold.
If you are keen to avoid paying more road tax, you could consider one of the cars that emits zero CO2 emissions. These include plug-in cars that are powered by the electricity. Currently in the UK there are more than 40,000 electric models available to buy.
With the changes coming soon, there is expected to be a rush to buy a new car and get it registered before the 1st April to avoid the hike in VED. You may find that many dealerships have offers to help drivers secure a car ahead of the changes. If you are keen to buy a car before 1st April 2017, we recommend looking and buying as soon as possible because there could be long waiting lists, pushing the registration date after the all-important date.
For advice on the new changes and what you can do to avoid paying more, contact Furrows by calling us, visiting the showroom or enquiring online. We are more than happy to help you.
EXISTING VED COSTS
VED COSTS FROM 1ST APRIL 2017
1ST 3 YEARS
1ST 3 YEARS
Ford Fiesta 1.0 s Zetec 5 door
Mondeo Titanium 1.5 EcoBoost
New Kuga 1.5 TDCi
|Kia Picanto 'SE' 1.0 ISG||102g/km||Free||£20||£20||£120||£140||£400||£380|
|Kia Niro '2' 1.6 GDi 1.56kWh||88g/km||Free||Free||Free||£100||£140||£380||£380|
|All-New Kia Sportage '1' 1.7 CRDi||119g/km||Free||£30||£60||£160||£140||£440||£380|
|Mazda2 105ps Diesel||89g/km||Free||Free||Free||£100||£140||£380||£380|
|Mazda3 Fastback 105ps Diesel||99g/km||Free||Free||Free||£120||£140||£400||£400|
|Mazda CX-5 150ps SKYACTIV-D Diesel||119g/km||Free||£30||£60||£160||£140||£440||£380|
|ŠKODA Fabia 1.2 TSI||110g/km||Free||£20||£40||£140||£140||£420||£380|
|ŠKODA Octavia 1.6 TDI 110PS Greenline||90g/km||Free||Free||Free||£100||£140||£380||£380|
|ŠKODA Yeti 2.0 TDI 110PS SCR||118g/km||Free||£30||£60||£160||£140||£440||£380|
*cars over £40,000 pay £310 supplement for 5 years
Click here to view Government site for VED changes