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Beat the increase in road tax and buy an ex demonstrator car



Have you ever considered buying an ex demonstrator vehicle? Well maybe now is the perfect time to do so. The way in which Vehicle Excise Duty (VED) is calculated changes as of 1st April 2017, and all new cars registered on or after this date will be taxed against a new banding system.

Click here to read DVLA announcement.

The changes will see new cars with CO2 emissions above zero purchased after 1st April cost drivers between £10 and £2,000 in first year road tax and then between £140 and £450 in the years following. This second rate is known as the standard rate, a charge that is based on vehicle valuation not emissions; vehicles with a list price below £40,000 will pay £140 per year, and vehicles with a list above £40,000 will pay £450 for the first five years following and £140 after that.

Therefore, the new VED rules will see the removal of the zero road tax benefit many low emitting vehicles have enjoyed in recent years. Going forward, only new cars emitting no emissions will be exempt from paying road tax.

New car customers that have grown accustom to paying zero road tax on low emission vehicles will be some of the most effected drivers.

For example, the popular Alfa Mito 0.9 TB TwinAir costs nothing to tax on the current VED system due to its low emission levels of just 99g/km. Come 1st April this will change to £100 in the first year and £140 every year after. So if a customer had the car for six years they would be looking at an additional cost of £820.

It is said that the changes to the VED will net the government £1.4 billion over the next four years.

All cars registered before 1st April 2017 however will not be effected by the changes and will continue to use the current VED bands – cars that emit up to 100g/km of CO2 will continue to pay zero road tax.

One way for new car customers to beat the VED changes would be to buy an ex demonstrator. An ex demonstrator (also known as ex demo, pre reg, or pre registered) is a vehicle that is no more than 12 months old that has previously been used as a display or test drive model at a dealership. Ex demo vehicles can offer great value for money and are usually sold at discounted prices when compared to the cost when new. Other benefits of an ex demo include low mileage, no previous private owners, high spec, and are usually in superb condition.

Click here to see our fantastic range of ex demo vehicles.

For more information about the changes to VED read the information provided on the following link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/534511/ved-reform-briefing-for-motor-industry.pdf

Added: 03 March 2017

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