High Cost Of Road Tax Could Kill Middle-Aged Cars
VED Rates Make High-Carbon Emission Cars Uneconomical
The high cost of road tax could force thousands of middle-aged cars off the road and onto the scrapheap, CAP has reported. But why? According to the vehicle valuation company, the problem is that taxing cars that have high carbon emissions – and were registered on/after March 23rd 2006 - can cost about one-third of their value. After all, Road Tax Band L cars cost £475 per-year to tax and Group M cars cost £490. These high figures theoretically encourage motorists to choose less polluting cars. But putting that to one side, some motorists have been willing to pay these large sums to tax powerful, modern, vehicles that have respectable second-hand values. However, as these cars approach their dotage less people will tolerate the high rates. After all, CAP has revealed that the cost of taxing a Renault Laguna 3.0 V6 24V Initiale Auto 5dr - that was registered in 2006 and has travelled 70,000 miles - is 34.55% of its “clean trade” value. Similar figures apply to the Citroen C5 3.0 V6 Exclusive Auto 5dr and the Fiat Croma 2.2 16V Prestigio Auto 5dr, etc. As such, demand/prices for these - and many other middle-aged vehicles - might soon plummet which could lead to a mass scrapping. CAP is therefore calling for prices in the highest road tax bands to be reduced for older models.
CAP Vehicle Valuation Expert Discuss Road TaxCAP's Mark Norman said: “We are now in the crazy situation where perfectly good cars have become uneconomical. This means more and more cars will become unsalable and will have to be scrapped long before the end of their useful life.” He added: “Scrapping serviceable cars for the sake of a tax disc makes a mockery of environmental taxes as owners already tend to limit their mileage because the (older) cars are relatively uneconomical. Throw in the carbon footprint of building the cars that replace those that are scrapped and the environmental justification for taxing these cars off the road collapses.” Mr Norman concluded: “The Government should now consider lowering VED rates for cars that fall into the brackets L and M after a certain age. This would prevent this potential waste of vehicles that do relatively little harm to the environment but provide cheap and comfortable transport for thousands of hard-pressed motorists in austerity Britain.” Have your say - Should users of older cars have to pay so much for road tax when the reason why they are buying older cars is probably affordability. Or should the government encourage them to buy greener cars with the current high taxation on older, less-efficient models?
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