Drivers will be hit with staggering car tax price rises in months – with petrol, diesel and electric car owners all affected.
Britons are set to face hefty car tax rises next spring (Image: Getty)
Motorists are set to pay a staggering £418 more in car tax bills from April with major updates just months away.
According to experts at Go Compare, drivers will be paying “significantly more” Vehicle Excise Duty (VED) from the spring.
Petrol and diesel owners face a staggering hike in first-year VED fees from next April.
Meanwhile, electric car owners do not escape the firing line with years of exemptions coming to an end.
Based on motorists’ buying habits in the first six months of this year, experts from the motoring group suggest an extra £162.9million in VED will be paid during the same period in 2025.
Buying a car with lower emissions could help motorists save on tax (Image: Getty)
When calculated among cars on UK roads, it means drivers will pay around £418 more to drive a new vehicle.
Tom Banks, a car insurance specialist at Go Compare, stressed motorists will likely notice the increase in rates within months.
He said: “The increased VED rates mean most new car buyers will be paying a lot more than they were expecting in 2025, but there are ways you can minimise the impact this will have on your finances.
“For instance, consider purchasing a low-emissions car that will place your vehicle in the cheaper tax bands.”
Although fees will rise for almost all vehicles from April, rates will still vary depending on emission rates.
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Brand new electric car owners will only pay £10 in their first year on the roads before switching to the standard rate.
Meanwhile, brand new diesel owners will be hardest hit with models likely to have much higher emissions.
Analysis from Go Compare has found an extra £26.1million in tax will be paid next year if the same number of diesel vehicles are purchased.
This is an average increase of £1,113 per car in what is a hefty four-figure rise.
More petrol cars are sold in the UK than any other fuel type with analysis predicting owners could pay out an extra £89.4 million in tax.
It means drivers would pay an average of £503 extra per vehicle next year which would be the second-largest tax hike on the roads.
Tom added: “If you can’t purchase a suitable hybrid or EV, consider opting for a nearly new vehicle instead. This gives you that new car feeling for a fraction of the price, and will allow you to dodge the increased tax.”
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