With the upcoming road tax changes, car buyers will feel the impact on both purchase prices and ongoing costs. These changes, set to take effect in April 2025, will make higher-emission cars more expensive while offering savings for electric and low-emission vehicles. Fortunately, purchasing through car auctions can help buyers take advantage of lower prices, providing significant savings on both vehicle costs and taxes. In this article, learn how UK road tax changes affect car buyers and the opportunities for savings that arise as a result.
What’s Changing with Road Tax?
Starting in 2025, road tax will increase for certain vehicles, particularly those that emit more carbon dioxide. Here’s what you need to know:
- Higher Taxes for High-Emission Cars: If you drive a petrol or diesel vehicle that emits more than 76g/km of CO2, the first-year Vehicle Excise Duty (VED) will double. This means that many drivers will be paying significantly more for their road tax on new cars.
- Hybrid Vehicles: For plug-in hybrids emitting between 1-50g/km of CO2, the first-year road tax will rise to £110. For vehicles emitting between 51-75g/km, it will go up to £130. This could make hybrid cars a less attractive option for those looking to keep costs low.
- Electric Vehicles (EVs): On the other hand, fully electric cars will continue to benefit from much lower road tax. You’ll pay just £10 for the first year of registration, and this rate will remain in place until 2029/30.
How Does This Affect Your Car Buying Decisions?
The good news is that these road tax increases may actually create an opportunity for you to save money, particularly if you’re considering buying a used vehicle. Learn how UK road tax changes affect car buyers and discover the potential for lower prices in the used car market.
- Used Cars Are Set to Get More Affordable: With the rise in road tax for high-emission and hybrid vehicles, many drivers may look to sell their cars before these new taxes kick in. This could lead to a spike in used cars being sold at auction, often at much lower prices than you’d find in showrooms. By purchasing through an auction, you could find a great deal on a used car without the added premium of showroom prices.
- Electric Vehicles (EVs) Will Be More Attractive: As road tax remains low for electric cars, many drivers are looking to switch to EVs to avoid higher costs down the road. Auctions can be a great place to find used EVs at a fraction of the cost of new models. Not only will you save on the purchase price, but you’ll also continue to benefit from the low road tax, making it a smart financial choice in the long term.
- Hybrid Vehicles May Lose Their Appeal: For those considering hybrid cars, the increased road tax rates could make them a less appealing option. With the rise in tax for hybrids, you might find that you can get a better deal on a vehicle that emits fewer CO2 emissions, such as a fully electric car. Auctions often have a wide range of used EVs and low-emission vehicles available, so you’ll have plenty of choices to stay within budget.
Why Choose Auction Buying Services?
By using an auction buying service, you can access vehicles at significantly lower prices than you would pay at a dealership. Car auctions allow you to bypass the markups that come with buying from a showroom, meaning you can get more car for your money. Learn how UK road tax changes affect car buyers and discover how buying through an auction can lead to savings on both purchase price and tax.
With the upcoming tax changes, now could be the perfect time to purchase a car before road tax increases hit. By buying through an auction, you can make sure that your next vehicle is not only affordable upfront but also won’t cost you a fortune in taxes later on.
As these changes unfold, it’s important to be proactive in making informed decisions about your next vehicle purchase. Whether you’re after an electric vehicle or looking to avoid high road taxes on a petrol or hybrid car, buying through an auction could be the smartest way to secure the best deal.
Helping You to Buy Right!
If you would like to explore the benefits of buying a used car from an auction but it all seems very daunting then we can help!
Here at Car Auction Buying Service, we’re dedicated to finding the very best deal at auction for you, attending events
arranged by British Car Auctions, Manheim and Aston Barclay, plus many more. We assist in bidding and provide the support you need to buy successfully from the auction; without the need for you to travel across the country .
Thanks to our multiple trade accounts we pay much lower buyers premiums compared to private buyers. We then pass that saving on to you! We scrutinise the cosmetic reports and mechanical reports that accompany each vehicle. Our team can also provide trade price warranties and deliver your car to any location in the UK. To find out more, or to inquire about buying your next vehicle from a nationwide or local car auctions, please give us a call on 0121 769 1729. Alternatively, you can fill out our online form or visit our website www.carauctionbuyingservice.co.uk
