Skip advert
Advertisement

Cost of tax discs could force cars off the road

Thousands of used cars could be forced off the road, according to CAP

Citroen C5

A study by vehicle data expert CAP has revealed that the cost of taxing some seven-year-old cars is now around a third of their total value.

CAP said that it believes that the problem stemmed from changes to Vehicle Exercise Duty (VED) bands, which were introduced in 2006 to penalise higher CO2 vehicles.

Advertisement - Article continues below

This means that cars registered since March 23 2006, with emissions between 226 and 255g/km now cost £475 to tax.

A 2006 Renault Laguna 3.0 Initiale Auto with 237g/km now costs £475 to tax - almost 35 per cent of its value - while a 2006 Citroen C5 3.0 Exclusive Auto also costs £475 to tax, which is more than 33 per cent of its value.

According to CAP, the danger is that such cars would quickly become worthless, despite producing relatively low emissions, because older, less economical vehicles tend to be driven less.

CAP has called on the Government to lower VED rates for cars that fall into the brackets L and M after a certain age in order to prevent a waste of vehicles that do relatively little harm to the environment. 

A spokesman for CAP said that scrapping serviceable cars for the sake of a tax disc "makes a mockery" of environmental taxes, because owners already tend to limit their mileage because the cars are relatively uneconomical.

He said: “We are now in the crazy situation where perfectly good cars have become uneconomical to own because the cost of taxing them could soon approach half their car’s value.

“This means more and more cars will become unsalable and will have to be scrapped long before the end of their useful life.”

Skip advert
Advertisement
Skip advert
Advertisement

Most Popular

New Xiaomi YU7 2025 review: a world-beating new EV to worry the establishment
Xiaomi YU7 - front cornering

New Xiaomi YU7 2025 review: a world-beating new EV to worry the establishment

BMW or Mercedes would do anything to keep the new Xiaomi YU7 from sale in the UK and Europe, and this is why
Road tests
14 Jul 2025
Electric Car Grant in detail: Which cars will get the UK EV discount?
Auto Express creative director Darren Wilson charging the Lexus RZ

Electric Car Grant in detail: Which cars will get the UK EV discount?

The government has set out its plan to help reduce the cost of affordable EVs by introducing a new £3,750 Electric Car Grant for new EVs sold under £3…
News
18 Jul 2025
Electric Mercedes CLA Shooting Brake will keep going long after rivals need to stop
Mercedes CLA Shooting Brake - front action

Electric Mercedes CLA Shooting Brake will keep going long after rivals need to stop

The second of Merc’s new-era EVs is here in the form of an attractive estate with a huge range
News
14 Jul 2025