Buy a new car in 2018 and your annual car tax bill could rocket from £0 to as much as £450, even if you go for the same car, just a newer version! So there has never been a better time to opt for USED over NEW and here’s why…
The Government has ditched the previous set of car tax bands for new cars. Previously, charges were directly linked to CO2 emissions but the Government has now opted in favour of a three-band set-up. This is in addition to first-year tax rates split into 13 bands depending upon the vehicle’s CO2 emissions.
What will I have to pay? 2018 car tax bands:
Any car with a list price below £40,000 with zero-emissions will cost you zero tax, so no changes to the previous car tax system, however, those over £40k will have to pay a £310 surcharge for the first five years. That means a total bill of £1550 before dropping to £0 from year six onwards.
Petrol and diesel models will be charged £140 per year (with the exception of bar hybrids and alternative fuel models, which are charged at £130), with a first-year charge based on the car’s CO2 emissions. As with electric cars, there’s a £310-per-year surcharge for models that break through the £40,000 mark for the first five years.
Models that come in under 50g/km will cost just £10 in the first year, rising to £2000 for cars pumping out more than 255g/km. As with the standard car tax charge, £10 is cut from the annual bill for alternative fuel models, including hybrids, bioethanol, and LPG-powered machines.
However, vehicles built and purchased before 1 April 2017 will not be affected by these rates.
Adding too many options could really increase your car tax charge
When buying new, it is the list price that’s considered when adding on the £310 surcharge, so if you add lots of optional extras pushing the list over the £40,000 mark, you will be liable for higher car tax costs.
However, choose a USED CAR and you could save yourself a fortune in car tax!
For more information on what rates of car tax you can expect to pay – see the government website!
To find your next used car, visit our website to browse over 5,000 quality used cars!
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