Is it all Black and White?

CAR SHOWROOM TAX - THE FORGOTTEN TAX?

From April 1st this year (and sadly it's no April Fool's joke) a new 'Showroom Tax' will be introduced that could add a one-off payment of up to a grand on top of the purchase price of your new car.

This new charge for vehicle excise duty was announced way back in Chancellor Alistair Darling's 2008 budget but its ramifications will finally start to hit home next month.

new or used new car

CAR SHOWROOM TAX - THE FORGOTTEN TAX?

Based on the government's car tax bands which focus on a particular motor's CO2 emissions, the aim of the one-off payment is to make punters (and their wallets) think harder about their potential new car's carbon footprint.

Sounds fair enough in principle but for the average driver who has to drive round a couple of kids every day (and their assorted wares) and needs a suitable car to do it in, the new tax could cause quite a financial sting - buying something as seemingly innocuous as a 2.0-litre diesel Ford Mondeo will see you facing a first-year duty of ?425 on top of the car's asking price, because of its Band J position (187g/km CO2 emissions for the Duratorq TDCi 140PS) - see below for a breakdown of the tax bands).

Those aiming higher and going for prestige brands such as a Land Rover or a Merc could see themselves paying the top rate of ?950 because of the cars's higher emissions. There is good news though - for the carbon-conscious among us, cars that fall into bands A through D will pay no car tax at all for the first year.

While here at Buyacar, we are advocates of greener motoring, we do have to wonder at the wisdom of piling on extra taxes when both the consumer and the car industry is still very much feeling the pinch thanks to the recession - which we are not even close to emerging from yet. More than ever then, it's imperative to source yourself a bargain by dropping Buyacar a line for the very best deals on that new set of wheels.



TAX BANDS BREAKDOWN:

Here's a breakdown of the Showroom Tax one-off payments on the purchase of new car from April 1st. You may be surprised how high up the list some everyday models place...



Band A-Band D (up to 130g/km CO2):

Cars in these bands are exempt from the Showroom Tax.

Example cars: Seat Ibiza 1.4 TDI Ecomotive, Totyota iQ, Fiat 500 1.3 Multijet, VW Polo 1.6 Tdi, Suzuki Swift 1.3 (Diesel)



Band E (131-140g/km CO2): £110

Example cars: Mercedes A 180 CDI (2010), New Renault Megane 2.0 dCi





Band F (141- 150g/km CO2): £125


Example cars: Ford Ka 1.3 Duratic (no air con), Peugeot 207 1.6 VTi



Band G (151 to 165g/km CO2): £155

Example cars: Audi A4 2.0 Tdi, Mazda6 1.8

Band H (166 to 175g/km CO2): £250



Example cars: Subaru Outback 2.0D SE, Saab 9-5 1.9 TiD





Band I (176 to 185g/km CO2): £300


Example cars: Vauxhall Insignia 2.0 CDTi, Nissan Qashqai 2.0 4x2



Band J (186 to 200g/km CO2): £425


Example cars: Freelander 2 2.2 TD4, Renault Clio Renaultsport 200



Band K (201 to 225g/km CO2): £550


Example cars: Alfa Romeo GT 1.8 TS, Porsche Cayman 2.9 PDK





Band L (226 to 255g/km CO2): £750


Example cars: Skoda Superb 1.8 150bhp Tiptronic, Kia Sorento 2.5 CRDi



Band M (Over 255g/km CO2): £950
Example cars: Lexus LS460, Volvo XC90 V9 Geartronic







 

Adam Phillips, 25th March 2010

TOP 5 NEW CAR DEALS

The results below show the top NEW CAR deals on buyacar

Kia Sportage 1.7 CRDi 2 5dr Diesel Estate
Price £17,527 Save £3,063 Kia Sportage 1.7 CRDi 2 5dr  Diesel Estate
Kia Sportage 1.6 GDi 1 5dr Estate
Price £14,857 Save £2,433 Kia Sportage 1.6 GDi 1 5dr  Estate
Ford Kuga 2.0 TDCi 163 Titanium 5dr Diesel Estate
Price £21,282 Save £4,353 Ford Kuga 2.0 TDCi 163 Titanium 5dr  Diesel Estate
Volkswagen Passat 2.0 TDI Bluemotion Tech S 5dr Diesel Estate
Price £19,956 Save £2,794 Volkswagen Passat 2.0 TDI Bluemotion Tech S 5dr  Diesel Estate
Kia Sportage 2.0 CRDi KX-3 5dr [Sat Nav] Diesel Estate
Price £21,602 Save £4,008 Kia Sportage 2.0 CRDi KX-3 5dr [Sat Nav]  Diesel Estate
VIEW MORE DISCOUNT NEW CAR DEALS
get quote

VIEW DISCOUNT NEW CAR

Let our car quote assistant help you configure your ideal new new car - it's 100% free and easy to use...

EDITOR'S REVIEWS

THINGS TO DO WITH THIS PAGE

SiteNav

NEW CAR

new or used:

Search Cars for Sale

Search by car: Or by budget: Advanced Search

Find a Car Review

7.9%
APR

@ buyacar.co.uk

  • Finance rates of 7.9% APR
  • Huge discount off list price
  • All cars are UK dealer supplied
  • FREE used car valuation
  • FREE delivery to your door