Car tax changes: The cost of owning petrol and diesel cars ‘will get more expensive’

Martin Lewis gives money-saving advice on VED car tax

Car tax updates will mean highly polluting petrol and diesel cars become more expensive to run” which will see overall car values plummet. Tom Leathes, spokesman for has urged drivers to consider upgrading their current car to meet new emissions-standards or prepare to be hit by fresh charges.

Speaking to, he said: “What is clear though as a general theme is if you drive an old car that is not Euro 6 compliant, that’s a high polluter, it’s only going to get more expensive wherever you live.

“Now is probably a very good time to think about upgrading to either a petrol and diesel car that does meet these low-emissions standards or making the shift to EV.

“Now is a good time to shift onto the used car market, get a good price for your current car before it loses all its value and shift onto something cleaner.

“That’s one way to avoid these things hitting you at all.”

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New Clean Air Zone charges are being introduced in Bath and Birmingham in 2021 which see residents and commuters hit with daily road charges.

Birmingham’s charge will see residents forced to pay up to £8 per day to use the city centre which could see commuters pay up to £40 every week.

Meanwhile, London Mayor Sadiq Khan is set to expand the capital’s Ultra Low Emissions Zone (ULEZ) in October 2021.

A new Outer London Borough Charge is also being considered which would charge drivers £3.50 a day to enter the capital.

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Proposals from the UK Energy Research Centre (UKERC) would see a new purchase tax introduced specifically targeting new petrol and diesel owners.

The proposals would see those who purchase cars emitting more than 225gCO2/km pay a 50 percent purchase tax from 2021.

This would then increase in instalments each year until only fully-electric models were exempt by 2030.

Speaking exclusively to, Tom Leathes has warned overall car values could be affected as charges increase.

He said the only way drivers could “protect” themselves from the added costs would be to sell their current vehicles as soon as possible.

Mr Leathes added: “This is the point. The writing’s on the wall. You have to look at the car you’ve got.

“It’s not going to get cheaper if you’ve got a high polluter it’s going to get more expensive.

“The value of your car as it becomes more expensive to run it will drop even further.

“Now is a great time to think about switching and focus on getting something as clean as possible.

“That way you protect yourself from all these charges hitting you in the future.”

Under the current Vehicle Excise Duty (VED) system, petrol and diesel owners still face heavier charges.

New owners of the most polluting cars are set to face charges of over £2,100 in their first year before falling to a £150 fixed fee.

However, electric car owners are completely exempt from VED and Clean Air Zone charges which is saving drivers hundreds of pounds each year.

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