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VED Rate Changes, 1 April 2017
Due to the COVID-19 restrictions, we expect longer lead times for all orders currently and we are not able to offer stock cars for immediate delivery.
Most of our dealers are still able to take orders, subject to the extended lead time. This would ensure you receive the earliest available allocation for your new vehicle.
If you have an existing car on order, delivery may be delayed. The dealer will advise you as soon as a delivery date is possible.
If you have any queries in relation to a new or existing enquiry, please email us - sales@autoebid.com and we will respond as soon as possible.
What it means for new car buyers
As of the 1st April 2017, the Vehicle Exercise Duty CO2 bands are changing for all new cars. In short, low emission cars that would previously have been VED exempt will now have a fee for the first 5 years of ownership. The first year fees are either less or more than the subsequent years depending on the band (see table).
The first year fees can be hefty if you buy a less economical car - anything up to a staggering £2,000 (for cars over 255 g/CO2/km). So, this is serious stuff for new car buyers. The only new cars exempt from VED under the new scheme are 0 emissions cars (totally electric).
The first year rate (£10-£2000), is followed by a yearly fee for the subsequent four years. This is a £140 flat fee, except for cars costing over £40,000, where an additional £310 is added for subsequent years, bringing the total to £450. It's also worth noting that the additional £310 fee (after year 1) applies to all cars over £40,000, irrespective of economy. Cheaper cars with optional extras that tip the price over the £40,000 threshold will be placed on the premium rate.
When the wait time on factory ordering a new vehicle is considered, there are only a couple of months left to order before you can no longer get the current rate. The good news is the VED tax only applies when buying brand new cars, so used car purchases won't carry it.
The numbers table
Here is the official table released by the government:
| New VED system - for cars registered from April 2017 | Current VED system - for cars registered until April 2017 | |||||
| New Emissions bands
(g/CO2/km) |
First year rate | Standard rate* | Current Emissions bands
(g/CO2/km) |
Current 1st year | Current ongoingVED | |
| 0 | £0 | £0 | Up to 100 | £0 | £0 | |
| 1-50 | £10 | £140 | £0 | £0 | ||
| 51-75 | £25 | £140 | £0 | £0 | ||
| 76-90 | £100 | £140 | £0 | £0 | ||
| 91-100 | £120 | £140 | £0 | £0 | ||
| 101-110 | £140 | £140 | 101-110 | £0 | £20 | |
| 111-130 | £160 | £140 | 111-120 | £0 | £30 | |
| 121-130 | £0 | £110 | ||||
| 131-150 | £200 | £140 | 131-140 | £130 | £130 | |
| 141-150 | £145 | £145 | ||||
| 151-170 | £500 | £140 | 151-165 | £185 | £185 | |
| 166-175 | £300 | £210 | ||||
| 171-190 | £800 | £140 | 176-185 | £355 | £230 | |
| 191-225 | £1,200 | £140 | 186-200 | £500 | £270 | |
| 201-225 | £650 | £295 | ||||
| 226-255 | £1,700 | £140 | 226-255 | £885 | £500 | |
| over 255 | £2,000 | £140 | Over 255 | £1120 | £515 | |
| *cars over £40,000 pay £310 supplement for 5 years | alternate fuels get £10 discount on above | |||||
All in all . . .
Purchasing most new vehicles after 1 April 2017 will be a more expensive endeavor than it is now because of the new VED. So, if you're thinking of buying a new car soon, it's worth checking out prices now to benefit from the current VED rate.
