Cost of ownership

Car tax changes: three quarters of new car buyers to pay more

Road tax will rise for the majority of drivers, from April 2017

Next month, the government introduces new charges for car tax. It will mean most people buying a new, efficient car will have to pay more in tax than they would have done under outgoing rules.

The proposals were outlined by former chancellor George Osborne in 2015. They are aimed at earning more revenue for the treasury, after the outgoing rules rewarded clean, efficient cars with low or no road tax. This resulted in buyers voting with their wallets and snapping up models that pumped out low levels of carbon dioxide (CO2).

Now only cars with no exhaust emissions, which means all-electric cars, will be exempt from paying car tax. Continue reading

Owning some new cars cheaper than used

New cars cheaper than used

Audi A1 is one of the new cars that can be cheaper to own from new than buy used. (Picture © Audi)

New cars cheaper than used? Surely it flies in the face of popular wisdom that suggests you’ll save money owning a used car compared to a new model. This is because from the moment you start owning a car its value starts tumbling. It’s called depreciation and it beats the cost of fuel, insurance and servicing to be the largest contributor towards the amount we pay to go motoring. Depreciation is at its steepest – and therefore costliest – in year one of the life of most new cars. That’s why it’s generally regarded as being cheaper to own a used car.  Continue reading