Drivers face ‘cost of ownership’ hike as new car | Tech News

Drivers are set to face larger car possession prices as costs are set to rise this spring. New Vehicle Excise Duty (VED) tax bands come into impact from April 1, with nearly all petrol, diesel and electric car house owners hit with price rises.

Siobhan Doyle, Consumer Writer at Carwow, careworn driving was “getting more expensive” in a blow to car house owners and even urged that new rises might even “influence car-buying decisions”.

Speaking solely to Express.co.uk, Siobhan mentioned: “The April 2026 VED changes are relatively small in isolation, but they add to a broader squeeze on motorists. The standard rate rises from £195 to £200 for most cars registered after 2017, in line with inflation.

“While a £5 increase isn’t significant on its own, it comes at a time when drivers are already facing rising fuel, insurance and maintenance costs, so it contributes to a growing total cost of ownership. There are some offsets. EV buyers benefit from the Expensive Car Supplement threshold rising to £50,000, removing a £425 annual charge for many mid-range electric models.

“Overall, it’s not a major shock, but it reinforces a clear trend: driving is gradually getting more expensive, and even modest tax changes can influence car-buying decisions and household budgets.”

The charges don’t finish there, with vehicles registered between 2001 and 2017 going through a sliding scale of tax prices primarily based on vehicle emission charges. The highest polluting fashions emitting over 255g/km can pay £30 more in 2026, with payments up from £760 to £790.

This 12 months’s VED charges are inflationary rises, with the annual street tax charges rising yearly in keeping with Retail Price Index (RPI).

However, it comes simply a 12 months after a main tax overhaul by Labour, which noticed 1000’s of kilos added to payments. HM Revenue and Customs (HMRC) confirmed the newest tax replace after Rachel Reeves’ Autumn Budget final 12 months.

HMRC mentioned: “As announced at Budget 2025, the Government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.”