Sunday 27 July 2008

How to drive down the costs of motoring

The message to drivers is increasingly clear - buy a car that emits low amounts of carbon dioxide and you will save on vehicle excise duty (VED) and running costs. With the price of petrol now averaging up to 119.5p a litre, and the Government determined to hit “dirty” drivers with increasingly high taxes, perhaps the time has come to trade in your car for something that is cheaper to buy, run and insure - and is better for the environment.

New VED bands will be introduced next April to ensure that the most polluting cars pay more tax. While cars produced before 2001 will not be affected by the changes, campaigners say that many newer family cars will be hit by much higher tax bills. For example, the owner of a Citroën C4 Picasso bought after 2001 paid £210 VED this year, but faces bills next year of £300, and £310 in 2010.

Ian Crowder, at AA Insurance, says: “The new bands will undoubtedly make VED more complicated and many drivers may be surprised at how much more tax they will have to pay. If you want to drive down the costs of motoring, your first priority will be to find the greenest car possible.

full article

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