Drivers across the UK are concerned about rising motoring costs with a new pay-per-mile car tax bill update likely to escalate the issue.
Drivers are under ‘pressure’ to sell (Image: Getty)
Motorists are under “financial pressure” to ditch their cars amid growing financial worries just as a new pay-per-mile car tax charge could be on the horizon.
Aidan Rushby, founder and CEO of car finance firm Carmoola, found the cost of living crisis was having a “significant impact” on motorists with millions axing vehicles to save money.
According to the analysis, younger road users and motorists under the age of 44 have been most affected with many turning their backs on car ownership.
Many have already reduced the amount of miles they travel in a desperate bid to bring down their bills.
It shows drivers across the UK are already struggling to stay afloat and keep their vehicles on the road with extra charges set to pile more pressure on individuals.
New car tax changes could push struggling drivers over the edge (Image: Getty)
Aidan said: “We discovered that the cost of living crisis is having a significant impact on UK drivers, with eight million cars (20 percent) potentially being sold due to escalating running costs.”
“The results were alarming, with nearly a third (29 percent) of Brits reporting that they have reduced their driving in 2024.
“Gen Z and older Millennial drivers have been hardest hit, with almost a third (30 percent) of 17 to 24-year-olds and a quarter (25 percent) of 35 to 44-year-olds indicating that they are under financial pressure to sell their cars.”
Millions more motorists will pay car tax Vehicle Excise Duty (VED) rates from April 2025 with electric vehicle owners issued fees for the first time.
However, there are rumblings that Labour could introduce a new pay-per-mile system which would charge road users for every journey they make.
This would likely replace a flat annual VED fee meaning those who rely on their cars will pay more than motorists who make fewer trips.
Speculation has risen after Adam Smith, chief of staff under Jeremy Hunt, admitted HM Treasury had requested that the Government “start preparatory work on a road pricing scheme”.
Aidan warned such a scheme would have “serious implications” and would likely “exacerbate” the number of drivers moving away from cars.
He even claimed younger drivers and those living in rural areas would be most affected as they would likely use their cars more to access work and education.
