The calculation of vehicle tax rates is based on engine size, fuel type and carbon dioxide (CO2 emissions), depending on when the vehicle was first registered. For cars registered on or after 1 March 2001, the rates are split into bands – the lower the emissions, the lower the vehicle tax.
Recently, the way emissions are measured has changed and this is now having a knock on effect to the pricing of the road tax on vehicles.
The NEDC system has given way to the new WLTP system, introduced at the end of 2019. It is designed to more accurately reflect vehicle emissions and fuel economy in real driving conditions.
Because the WLTP test is more stringent, the revised measurement figures mean that Vehicle Road Tax (Vehicle Excise Duty - VED) is changing for new vehicles registered on or after 1st April 2020. If you are thinking of changing your car or van this year, then buying before 1st April could save you up to £960 in tax. Benefit in Kind on Company Cars is affected too, but from 6th April 2020. WLTP CO2 values are typically showing up to 20% higher than the current NEDC CO2 values.
Although the new values should give drivers a much clearer idea as to which vehicles are more economical to run and which are better for the environment, the change in tax cost could be up to £960 more expensive.
So, if you are thinking of buying a new car or van this year, test drive sooner rather than later and check out our great deals and offers today!*
*Cars and smaller LCVs are affected, however commercial vehicles will not be affected until 2021.
Here are some examples of some of our brands, with the new tax rate changes in April 2020.
|Model Description||Increase In VED Rate||Increase in BIK Rate|
|ŠKODA KAROQ SE Technology 1.6 TDI 115PS DSG SR||+£645||+4%|
|SEAT Ibiza XCELLENCE Lux 1.0 TSI 115PS||+£60||+4%|
|ŠKODA KODIAQ vRS 7 seater 2.0 BiTDI 239PS DSG 4x4||+£960||0%|
|ŠKODA SCALA SE L 1.6 TDI 115PS DSG SCR||+£360||+5%|
|SEAT Leon Estate XCELLENCE 2.0 TDI NR 150PS||+£320||+3%|
|SEAT Ateca XCELLENCE Lux 2.0 TDI NR DSG Auto 4Drive 150PS||+£750||+2%|
BIK rates are used for company cars only.