Drivers in the dark about rising VED rates
Fewer than 50% of drivers are aware that first-year rates for Vehicle Excise Duty (VED) are rising on 1 April.
VED is the yearly tax on all vehicles that use public roads, with buyers of new cars paying an additional ‘first-year rate’ for the first 12 months they own the vehicle.
In some tax bands, these rates will double from the start of April.
This could mean up to 200,000 new car buyers will be hit by unexpected tax hikes of an estimated £83.5m.
According to Go.Compare, the average tax increase on new cars will be £418 between now and September.
Less than a quarter (24%) of drivers under 25 said they knew about the rises, compared to roughly a third (34%) of 25 to 34-year-olds, and half (49%) of 40 to 59-year-olds. Older motorists had the highest awareness, with nearly two-thirds (62%) of over 60s stating they knew about them.
“The increases apply to new cars and are based on CO2 output, so if you want to avoid them altogether, buy a ‘nearly new’ car that’s just a few years old instead. Or consider a low-emissions car, as that will place you in the cheaper tax bands.”
