Petrol and diesel owners ‘feeling the pinch’ as car tax VED fees rise today

Petrol and diesel owners are “feeling the pinch” as new Vehicle Excise Duty (VED) car tax charges come into effect from today.

Experts warn that “most motorists” will now have to “face another cost” to keep their cars on the road with fees rising for almost all combustion owners.

VED rates rise with Retail Price Index (RPI) inflation with fees rising from as little as £10 to a staggering £140.

Matthew Walters, Head of Consultancy and Customer Value at ALD Automotive|LeasePlan (UK), said the move could create a new “financial challenge” for road users already struggling to pay for their vehicles.

Speaking to, Matthew explained: “Most motorists will be facing a price hike in VED, with drivers of the newest vehicles set to pay up to £190.

“As of 1 April, drivers will be facing new financial challenges as the Government raises VED in line with inflation while trying to encourage the transition to electrical vehicles.

“Petrol and diesel owners are already feeling the pinch with ULEZ charges in areas like London, and now face another cost to factor into their situations.”

The standard rate for new models registered after 2017 will rise from £180 to £190 per year under the changes.

However, it’s owners of brand new models who are most affected with the first year rate for the most polluting models over 255g/km of CO2 up from £2,605 to £2,745.

Cars registered between 2001 and 2017 will pay different rates based on their overall emissions.

This means total charges will vary depending on each vehicle with the highest increase around £40.

Finally, models produced before 2001 are also affected with charges set to rise by up to £20 for those with larger engines over 1,549cc.

But, not all petrol and diesel models are affected with classic cars over 40 years old totally exempt from paying any road tax fees.

Those with electric vehicles will continue to benefit from a further one-year exemption but owners will be hit with charges from April 2025.

Richard Evans, head of technical services at webuyanycar, said drivers “need to be aware of how much they should be paying” to avoid being caught out.

He added: “The rise in vehicle excise duty by up to £140 in April will mean drivers face even higher motoring costs during an already expensive time.

“Our research shows that 9 in 10 (92 percent) drivers have seen motoring costs increase over the last 12 months with over one in ten (12 percent) considering selling their car as a result of these rising costs.”

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