This change, largely increases the amount of tax you will pay during ownership of a new car. In some cases, the VED you will pay the government on certain models in the SKODA range will increase by as much as 700%.
All new cars will be subject to a CO2 New Car charge for the first year, then default back to a standard charge of £140 per year - regardless of how efficient your new car is. Certain cars (not in the current SKODA range) fall outside of these guidelines, such as 0 emission CO2 cars which will continue to have a £0 cost VED banding. While the first-year tax rate will vary based on a car’s CO2 emissions, the annual fee will be a flat rate of £140 for all cars, with an extra £310 annual surcharge applying to all new cars costing over £40,000 new.
Don’t wait! Take advantage of the current savings by buying your car before April 1st to ensure that your car is registered under current VED banding system. You could save hundreds of pounds on the ownership of your car. As an example, we looked at the Superb Hatchback SE L Executive 190ps, a very popular car that is also incredibly efficient for its size and performance. It is currently only in VED Band B - the same as a Citigo or Fabia, and costs only £20 per year to tax due to its low emissions. The new blanket taxation system means this car will cost £120 to tax at purchase, and then £140 per year, every year after. Meaning in just three years of owning this car, you will pay £440 in road tax, as opposed to the £60 it would cost you if you buy this car before April 2017. That’s a staggering £420 rise.
If you are considering upgrading, please contact us to ensure you save not only an incredible amount of money with our great offers, but also to avoid the extra tax levy you would pay in the first 3 years of owning the car.