Buying a Used Diesel Car Has Never Been So Attractive!

Only last year, the Vehicle Excise Duty system saw the biggest shake up in a long time and now the UK Government is revising diesel car tax again! But don’t worry, buying a used diesel car has never been so attractive!

Although this latest change will add further charges to anyone purchasing a brand new diesel motor, if you’re looking for a used diesel car, you’ll still get the same benefits as if you were buying petrol.

You see, the new diesel car tax only applies to brand new diesel cars in the first year of registration, with owners of 18-plates bought after April 2018 being the first to have to pay the extra costs.

As always, when buying a used car, you’ll get the same spec as a much more expensive new car, often with much of the manufacturer’s warranty included, at a fraction of the RRP. And if you buy a car that’s at least a year old, you won’t even have to think about the extra diesel car tax.

While we at Motor Range can’t do anything about the charges imposed on the region’s hardworking car owners, we can provide some guidance on the new, new system so you know which extra costs you’ll have to apply to a new car purchase and which you’ll be able to avoid if you head for a quality used car from our Liverpool showroom instead.

What Do We Know About the New Diesel Tax Bands?

Owners of brand new cars (diesel or petrol) all pay different amounts of car tax for the first year which depends on how much CO2 the car gives off. After this, all cars pay the same rate, no matter what the emissions. New diesels will be liable for an even bigger payment in the first year:

 

CO2 emissions (g/km)

1st year tax (VED) payable for BRAND NEW cars from April 2017

1st year tax (VED) payable for BRAND NEW diesel cars from April 2018*

Tax payable from 2nd year onwards**

Petrol/Diesel

Alternative Fuel

Petrol/Diesel

Alternative Fuel

0

£0

£0

£0

£0

£0

1 - 50

£10

£0

£25

£140

£130

51 - 75

£25

£15

£105

£140

£130

76 - 90

£105

£95

£125

£140

£130

91 - 100

£125

£115

£145

£140

£130

101 - 110

£145

£135

£165

£140

£130

111 - 130

£165

£155

£205

£140

£130

131 - 150

£205

£195

£515

£140

£130

151 - 170

£515

£505

£830

£140

£130

171 - 190

£830

£820

£1,240

£140

£130

191 - 225

£1,240

£1,230

£1,760

£140

£130

226 - 255

£1,760

£1,750

£2,070

£140

£130

Over 255

£2,070

£2,060

£2,070

£140

£130

 

The 1st tax year payment covers a vehicle for the 12 months following first registration, i.e. brand new cars only.

* Only for cars not meeting Euro 6 emission standards

**Cars costing more than £40,000 at first purchase must pay another £310 each year from year 2 to year 6.

From the rules introduced in April 2017, after the first year’s payment on a brand new car, all diesel and petrol car drivers will pay a flat rate of £140 each year, while alternative fuel cars (such as LPG and hybrid) pay £130. Owners of electric cars with zero emissions won’t pay anything.

What Does the New Diesel Car Tax Mean for Me?

Unless you’re buying a brand new diesel car, these latest changes won’t make any difference to you. But if you’re biting the bullet and you are buying a new diesel car, you’ll have to pay one band higher tax than if you were buying petrol, for the first year.

Basically, the changes in April 2018 mean that it’s even more attractive to buy a used diesel car! On top of the reduced retail price, you‘ll also make savings on the diesel car tax rate when you buy a car over one year old. And don’t forget that on longer journeys, a diesel car will give you more miles per gallon of fuel than a petrol will and often provides more pulling power (or torque).

Take a look at three of our examples:

From April 2018, a brand new Kia Sportage 1.6 GDi with CO2 emissions of 147 g/km will cost £515 in diesel car tax for the first year, while a 17-plate will cost you just £140 to tax and a 16-plate will cost £150. Add this to a purchase price of a used Kia Sportage that’s nearly £5,000 cheaper than a brand new model, and you can make a massive saving by simply choosing a used car!

Even a Citroën C4 Grand Picasso 1.6 BlueHDi, hot off the production line at low CO2 emissions of 99g/km will cost £125 to tax in the first year yet absolutely nothing if you buy the same Citroën C4 Grand Picasso registered before April 2017. Not to mention the savings of around £12,500 in price on a new versus used model!

For a little bit more power, go for a brand new VW Golf 2.0 GT TDI at 119g/km and you’ll have to fork out £165 for road tax in the first year. However, if you’re clever, you could pick up a 17-plate model that’ll cost you only £140 a year in road tax or a 16-plate version that will cost you just £30 a year in road tax. By going for a used VW Golf, you’ll also be saving yourself around £11,000 on the purchase price.

How Do I Know How Much Road Tax I Owe?

That’s easy, just ask any Motor Range advisor! They’ll be able to let you know the CO2 emissions on any of our hundreds of cars in stock and give you an idea of what you can expect to pay in road tax each year.

With the new 18-plate cars fast approaching, there’ll be plenty of 17-plates appearing on the used car market soon, so you’ll only have to factor in the £140 that all car owners must pay once the car is a year old - petrol or diesel (£130 for alternative fuel).

The great thing about buying a used car is that your road tax payment will be the same every year without the initial (often higher) rate imposed on brand new cars during the first year of registration. Unless your car cost more than £40,000, that tax payment will stay the same throughout the life of the car so you can budget easier for your motoring expenses.

Remember that the new diesel car tax rules only apply to brand new diesel cars and once they are a year old, they are charged the same rate as petrol cars, ie £140. 

As we said, buying a used diesel car has never been so attractive so head down to the Motor Range showroom to take your pick of our wide range of quality used cars. Diesel, petrol or hybrid, you’re sure to find a great buy!