The government is changing the rates of road tax (officially titled Vehicle Excise Duty – VED) and this will affect any new vehicle registered on or after 1sT April 2017. If you’re currently thinking about purchasing a new car or trading your current car in for a new model it’s important you understand what the road tax changes will mean for you.
So what’s changing?
From the 1st April 2017 the road tax system is undergoing a major change which will see all cars registered on or after this date affected. For the first 12 months the amount of road tax you will pay is variable, based on the CO2 emissions of your car. After the first year you will pay a standard rate based on the type of vehicle you drive, will petrol and diesel vehicles will have a standard rate of £140 per year and alternative vehicles (hybrid, bioethanol and LPG) a standard rate of £130 per year.
This crucial change to the road tax system means you could end up paying hundreds of pounds more. However, there’s still time to beat the tax increase if you register your new vehicle at a RMB dealership before the 31st March 2017.
So how will this affect me?
To give you an example, if you purchase and register a new Toyota Yaris with free satellite navigation before the 31st March 2017 you will pay zero road tax.
From the 1st April when the road tax increases are in place you will pay £120 for the first year, followed by a standard rate of £140 per year. Meaning over the three year period you will have paid £400 more than the current rates.
What shall I do next?
A wide range of car models across our brands Toyota, Lexus, Renault, Dacia and Ford currently have low tax levels, with a number of models with zero tax rates due to the low CO2 emissions they produce.
The changes only affect vehicles registered on or after 1st April 2017, so if you visit your local RMB dealership sooner rather than later you’ll save yourself a fortune.
If you are looking to buy a new car, now’s the time to do so! Call into your nearest RMB dealership today to avoid the road tax increases and discuss our latest outstanding offers. If you have any queries about the car tax changes our friendly sales team will also be available to talk you through them.