Band E

With road tax Band E covering everything from a Proton Gen2 (166g/km) all the way up to a Mercedes SLK 200K (182g/km), this is another bracket where it pays to keep an eye on what you buy.

For starters, Ford has two people carriers which just fail to sneak into the band below, both giving out CO2 emissions of 166g/km. However, if carrying capacity is a high priority, you would be better off selecting the Galaxy 1.8 TDCi than the C-MAX 1.6 petrol, as it can take seven rather than five.

The Galaxy is not the only seven-seater MPV at this level, though. Volkswagen has recently unveiled its Caddy Maxi, with a CO2 output of 166g/km for the 1.9 TDI. However, opting for the smoother and punchier 2.0 TDI raises emissions by only 3g/km to 169g/km, so the cost of the tax disc remains the same.

If practicality isn’t such an issue, then there are plenty of family hatchbacks to choose from, all of which combine reasonable economy with strong performance. Take the Peugeot 308 GT THP, which uses the firm’s excellent 150bhp 1.6-litre turbocharged petrol engine. Financially it makes perfect sense, as at 167g/km it puts out only 1g/km more than its 207 supermini stablemate with the same powerplant.

In Band E the market starts to diversify, too, with SUVs beginning to feature more prominently. Step forward the Ford Kuga at 169g/km, BMW X3 2.0d at 172g/km and Honda CR-V and Toyota RAV4 diesels, both at 173g/km. By contrast, if you want a Hyundai Santa Fe or Volkswagen Tiguan, you’ll be shelling out an extra £40. And we’d suggest you steer well clear of petrol 4x4s: the Nissan X-Trail 2.5, Vauxhall Antara 2.4 and Santa Fe 2.7 all fall into the top £400 tax bracket.

If you are looking to maximise performance while minimising payments to the DVLA, the first sports cars are within reach. Road tax discs for both the 1.8 and 2.0-litre versions of the Mazda MX-5 – which produce 174g/km and 183g/km respectively – cost £170, and the Audi TT 2.0T FSI also falls into this band, at 183g/km.

However, for real performance at this level, you need to look to diesel power – and oil-burners don’t come any more potent than the 282bhp BMW 635d, which incredibly boasts the same 183g/km CO2 emissions as a Chevrolet Lacetti 1.8 petrol!

Another car that sticks out like a sore thumb here is the Lexus GS450h, which pumps out only 185g/km. If you want a hybrid, it’s worth knowing that it sits a bracket lower than the RX400h SUV and larger LS600h.