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Did you know, the fear of the number 17 is called “heptadecaphobia”. Let’s hope that our customers who are taking delivery of their shiny new cars today with the new 17 plate on them, don’t have an aversion to the number!   There’s nothing like the excitement of buying a brand new car and congratulations to all of our customers who are having new vehicles, with the new 17 plate.

Supposedly, it takes 17 muscles to make a smile – we’re sure they will be using every one and more when they drive those new cars.

New Road Tax (VED /Vehicle Excise Duty) Rates – From 1^st April 2017

Looming on the horizon is HMRC’s new road tax system. Vehicles registered after 1^st April 2017 will be subject to the new rules.  Any vehicle registered before this date will not be affected in any way.

The original tax system benefitted low CO2 emissions vehicles, but as there are more and more of these on the road, the Chancellor has received less and less money into the coffers. The new road tax system aims to redress this.

From 1^st April, all vehicles will be subject to an initial 12 month tax rate according to their CO2 emissions.  This will range from zero for vehicles rated under 50g per km, to £2,000 for vehicles rated at over 255g.  In subsequent years tax will be a flat rate of £140 in the majority of cases, with an additional £310 supplement for vehicles that have a list price over £40,000.

So, is it better to wait to buy your new car? In these cases, it will certainly pay to get your new car registered before the end of March.

If the car you’re looking at buying has a CO2 rating of 100g or lower, under the old system you would pay no road fund for life. Under the new road tax system, it will cost £400 over the first 3 years, £680 over the first 5 years, and £1,380 over 10 years.

If the list price of the car is over £40,000 and has a CO2 of 135g, the EXTRA costs (over & above the current system) will be £710 over 3 years, £1,350 over 5 years and £2,950 over 10 years.

Our advice; there’s still time to order your new car for delivery before 1^st April.

New Road Tax Prices

For vehicles first registered on or after 1 April 2017, the amount you pay for the first 12 months is based on CO2 emissions.

CO2 Emissions (g/km)	Petrol & Diesel Cars	Alternative Fuel Cars
0	£0	£0
1-50	£10	£0
51-75	£25	£15
76-90	£100	£90
91-100	£120	£110
101-110	£140	£130
111-130	£160	£150
131-150	£200	£190
151-170	£500	£490
171-190	£800	£790
191-225	£1,200	£1,190
226-255	£1,700	£1,690
Over 255	£2,000	£1,990

The amount you pay each year after that depends on the type of fuel the vehicle uses.

Fuel Type	Standard Annual Rate
Electric	£0
Alternative Fuel	£130
Petrol & Diesel	£140

New vehicles that cost more than £40,000 The first time you tax a vehicle on or after 1 April 2017 with a list price of more than £40,000, you’ll pay the rate based on CO2 emissions.

After the first 12 months, you’ll pay a rate based on the fuel the vehicle uses and an additional rate of £310 a year for the next 5 years.

Fuel Type	Standard Annual Rate	Additional Rate	TOTAL Annual Payment
Electric	£0	£310	£310
Alternative Fuel	£130	£310	£440
Petrol & Diesel	£140	£310	£450

After 5 years, you’ll pay the standard annual rate depending on what fuel your vehicle uses.

• Alternative fuel vehicles include hybrids, bi-ethanol and liquid petroleum gas.
• The £40,000 list price is the published price before any discounts & includes all options/extras that are fitted by the manufacturer.

 

For advice on any aspect of your next new car purchase, please give us a call at HV Motor Finance.