10 February 2024 , 05:33
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Car owners may need to rethink having a vehicle as car tax rates are set to increase from spring.
Paul Daly, director of InsureDaily.co.uk, suggested that the rising costs of owning a car might make it less worthwhile, especially with the new Vehicle Excise Duty (VED) rates coming into effect from April 1, 2024.
Most car owners will see just a slight rise but those with the most polluting petrol and diesel models will be heavily affected. Motorists whose cars are registered on or after April 1, 2017, will see standard rates rise from £180 to £190 per annum.
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All cars pay the same flat rate from the second year onwards. Cars with a list price over £40,000 pay an 'expensive car supplement' from the second to sixth year of registration.
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It comes while annual car insurance premiums are up by more than 50 per cent. Paul said: “For some vehicle owners, it could be time to reconsider the value of owning your own car compared to the costs of running the vehicle.
“There are alternative options, including temporary insurance cover for drivers borrowing a car.” According to finance experts at Pete Barden, VED fees will rise by around six per cent this year.