Drivers have been warned to brace for a sharp tax rises that could make new cars more expensive (Image: Getty)
A motoring expert has urged drivers to set to take place in 2025 that could cause the cost of a new car to rise by thousands.
Whilst factors such as global conflicts and rising labour costs have caused new car prices to rise significantly over recent years, a change to the amount drivers will need to pay in (VED) could drive up the charge even more.
Andy Wood, International Tax Advisor at , highlighted that the could to the cost of buying a new model.
He warned: “If you drive a high-emission vehicle, brace yourself for a big hit to your wallet. Starting in 2028/29, VED rates for vehicles emitting over 76g/km of CO2 will double. The worst offenders – cars with emissions over 255g/km – will see their annual tax bill to a staggering £5,490.
“This isn’t just a money issue; it’s a clear push from the Government to encourage drivers to switch to greener alternatives. For families or small businesses relying on older, high-emission vehicles, this could mean tough decisions ahead.”
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The change could see VED rise by as much as £2,745 on some new petrol and diesel cars (Image: Getty)
The VED change, which was introduced in the Labour Government’s first budget, will affect the amount of tax paid on new vehicles.
With the tax exemption on electric vehicles also set to end in April 2025, the rates paid on new petrol and diesel models will double in many cases.
This is in order to encourage motorists buying new vehicles to choose a more environmentally friendly model that produces less carbon dioxide.
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Vehicles in the highest tax band include a number of SUVs, like the Toyota Land Cruiser 2.8D (Image: Getty)
The drivers set to be the worst affected by the change will be those thinking of buying a new car that makes more than 255g/km of carbon dioxide, with the tax doubling from £2,745 to £5,490.
Many of the models within this tax band are high-performance supercars and luxury models such as the Ford Mustang 5.0 V8 and the Mercedes-Benz AMG GT 4.0.
However, there are a number of large off-roaders and SUVs that will also be affected by the sharp increase, such as the Toyota Land Cruiser 2.8D and Range Rover 4.4 P530 V8.
Andy also warned drivers thinking of buying a new electric vehicle that they will also need to pay tax from 2025, albeit a much lower figure.
He added: “There’s still good news for electric vehicle (EV) drivers. Zero-emission cars will continue to get favourable tax rates, with a first-year VED fee of just £10 until 2029-30. If you’ve been thinking about going electric, this is a great reason to take the plunge.
“But hybrid owners beware: starting in 2028/29, your VED tax rates will jump to 18%, signalling a clear push toward fully electric options. If you’re planning to invest in a new car, make sure you’re factoring in these tax changes.”