Vehicle Excise Duty changes could be about to cost you hundreds, if not over a thousand, pounds, if you plan to buy a new car in 2020, and wait until after 1st April.
The UK road tax system has seen a lot of changes over the years (hardly surprising – when you consider it generates around £5 billion a year for the Treasury, it follows that small changes can result in significant gains in revenue), so it can be tricky to get a handle on what you’ll have to pay when you buy a new car.
We’ve already seen the majority of vehicles cost more in tax when the system was last significantly altered in April 2017 (and again after inflationary rises pushed costs up in April 2019), but the impending Vehicle Excise Duty changes – coming in April 2020 – will mean that some vehicles will cost a lot more to tax in the first year. For example, we’ve discovered that a new large SUV could cost you up to £960 more (thanks to the VED changes) if it’s registered after 1st April this year.
What will happen to road tax rates on 1st April 2020?
It’s definitely not an April Fool’s joke. Most vehicles will cost you more to tax after 1st April 2020 as a result of the updated official emissions as a result of WLTP (Worldwide Harmonised Light Vehicle Test Procedure) – because of this new testing standard most vehicles are now declaring higher emissions, and will move up a group or two in terms of VED bands.
What does this mean for me if I’m buying a new car?
You might want to have a think about when you want to take delivery of your new vehicle – the easiest way to avoid the increase is to order sooner rather than later, so that your new car is taxed under the existing system rather than the amended one.
How can I save money on road tax?
If you are flexible on the vehicle you are buying, then you’ll be able to cut your VED bill by choosing a car which has lower emissions under WLTP than the one you had intended. However, if you’re already set on a particular model, you’ll most likely save money if you buy before the change comes in. Vehicles registered before 1st April 2020 will be taxed under the system that came in on 1st April 2019, which will generally cost less.
Here are a few examples of popular vehicles, giving an idea of how much more VED you’ll pay after April 1st 2020 (on top of the previous amount of VED payable):
- Audi Q5 TDI Quattro S-Tronic, +£1,285
- Land Rover Discovery Sport diesel auto, +£960
- Nissan X-Trail 4WD auto, £960
- Range Rover Evoque D180 auto, +£750
- Audi Q7 TDI Quattro S-Tronic, +£535
- Volvo XC60 diesel Geartronic, +£425
- Jaguar F-Pace diesel auto, +£425
- Volvo XC90 diesel Geartronic, +£425
To beat the VED price rise and save yourself a lot of money, call us on 01473 372020 or contact us, to find out which makes and models we’re able to supply before the 1st April cut-off date.