Reduce Road Tax Expenditure
Purchasing an environmentally friendly new vehicle can reduce your annual road tax
Purchasing an environmentally friendly new vehicle can reduce your annual road tax expenditure to between £0-£30. This is because cars registered from March 2001 are taxed on carbon emissions, rather than engine size as for older models. The trick therefore is to buy a vehicle with emissions no higher than 120g/km.The good news is that environmentally friendly cost cutters can choose from a wide variety of capable vehicles. These include the Toyota IQ 1.0 VVT-I manual which is free to tax as its emissions are only 99g/km. Higher specified models are also very efficient so the 1.33-litre Multidrive can be taxed for only £30. Motoring.co.uk's new car database reveals the Toyota IQ is listed with 'buy safe' sellers from £9,940. Alternatively, motorists who fancy a modern hybrid can slip behind the wheel of the Toyota Prius. The latest third generation variant is available with a 1.8-litre diesel/electric motor combination which returns an average of 72mpg. This means annual road tax costs precisely zero as its emissions are only 89g/km. Toyota's environmental champion is listed in the new car database for £19,450 - £26,635. Further cheap to tax vehicles include the frequently overlooked Kia Picanto, the stylish Citroen C1, and eternally popular Ford Ka. These toy-sized urban dwellers all proudly wave the low emissions flag so basic models can be taxed for either £20 or £30.