Outsmart the Chancellor and make huge tax savings with an older car.
Due to road tax changes in March 2001, cars registered before the cut-off date can be cheaper to tax than newer equivalent models. You could save almost £400 over three years on selected people carriers, 4x4s and luxury cars.
So if you’re looking for an older car, be clever and take advantage of cheaper road tax.
Here’s how to do it…
Whereas road tax on all models registered on or after 1st March 2001 is based on CO2 emissions, cars registered before then are taxed according to the size of their engines.
For older cars, there’s one rate for engines 1549cc and smaller and another for larger engines.
Road tax pre-2001
With newer models, annual road tax rates are based on cars’ emissions and currently there are seven tax bands, ranging from A to G.
Road tax March 2001- April 2009
The road tax system is set to change in April 2009. Read all about the upcoming changes.
As road tax is calculated differently depending on when the car was first registered, costs vary hugely too. So you could save £££s by owning a car registered before the 1st March 2001 cut-off date.
Let’s take the popular Ford Galaxy (00-06) people carrier as an example.
We’ll use two top-trim Ghia models with 2.8-litre engines and automatic transmission, registered either side of the tax changes. One registered in February 2001 on a 2000/X plate, with the 2001/Y model registered two months later in April.
Ford Galaxy (00-06) 2.8 Ghia 5d Auto
So the difference between two identical models registered two months apart adds up to £395 over three years. And there are plenty of further examples where buyers can make huge savings.
BMW X5 (00-07) 3.0i Sport 5d (01)
Jaguar S-Type (99-08) 3.0 V6 4d
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