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Established Member
6 Nov 2023
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Just been out for a meal with a mate and he was telling me about Vehicle Excise Duty rates. Cars with a list price of over £40K sold after 2017 currently incur an extra £390 on top of the standard rate of VED on years 2 to 6. VED rates are due to go up in April this year and again in 2025. He’s now looking to do a deal on a new car under the £40K threshold …
I was planning on keeping my car for a few more years anyway but now I’m definitely keeping it a bit longer.
Yeah but it's old news.

My car was subject to that when I bought it in 2017 though at the slightly lower rate of £355 applicable at the time and is one of the reasons I've hung on to it as the replacement cost is horrific. Currently mild and plug in hybrids are also affected though EVs are not but that is about to change with EVs also due to pay VED from 2025 and that includes the "luxury" car tax /over £40k on EVs registered after 31st March 2025.

Just as an aside, my daughter wrote her car off 3 weeks ago and needed to replace it with a simiolar but newer spec model. I trawled around the local garaged and searched on line and decent small cars are being sold almost as soon as advertised, luckily I found one that had just come in that morning, wasn't prepared or listed or we would have missed it. Some of the dealers I visited are desperate for good low milegage ICE cars and not interested in s/h EVs form what they told me. I have a little Skoda Citigo I bought for £5k in 2018 3 years old then with very low mileage specifically to tow behind our motorhome and I was offered my money back at the same dealer last week as they only had one in stock already reserved and no more are being manufactured.
I bought my current car at the end of 2016 so I’d not heard of this before.
Yes you just missed it as it came in from April 2017 if I remember. Worth hanging on to if it's in good nick and low mileage, Mine has only covered 30k and is immaculate, Mercedes are desperate to buy it back off me even as a straight sale and not buying a replacement from them. The local guy who does our servicing also has made me promise him first refusal.

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