Warning for thousands of drivers with cars made | Tech News

Thousands of drivers with cars bearing particular registration plates have been issued with an pressing warning. The stark alert has been despatched to motorists with cars made between 2001 and 2017.

A car tax warning has been despatched out to drivers and highway customers after a Vehicle Excise Duty (VED) shake-up underneath the Labour Party. For older cars, together with fashionable classics registered between 1 March 2001 and 31 March 2017 the system continues to be based mostly on emissions, and people emitting much less than 100g/km will nonetheless pay nothing, whereas for all people else there’s a £10 increase in comparison with 2024 charges. Car insurance coverage firm Hagerty mentioned: “That means owners of older cars emitting more than 255g/km of CO2 will pay £735 a year for the privilege of driving on Britain’s beautifully-maintained road network. Ahem.”

The firm added: “Cars registered before 1 March 2001, that were still younger than 40 years old on 1 January 2025, are charged based on engine capacity. That’s £210 a year for those under 1,549cc and £345 for anything above.”

It defined: “The Government considers any car older than those to be a “historic vehicle” and is therefore exempt from paying road tax, or, indeed, being required to have an annual MOT test.”

Drivers who’ve automobiles registered afterwards pay underneath a totally different ­system. For the primary yr of registration, they must pay a “showroom tax”, which relies on the vehicle’s CO₂ emissions.

John Cassidy, managing ­director of gross sales at Close Brothers Motor Finance, says some consumers are already put off by a restricted battery charging infrastructure for EVs.

Lorna Macpherson, a motor finance professional at Ocean Finance, which presents car loans, means that whereas the adjustments to the tax regime do make cleaner cars cheaper to run, drivers could also be ­unable to modify due to the escalating price of motoring.

She says: “For petrol and diesel cars, an increase in VED means larger ­working prices for homeowners, ­making newer, more environment friendly cars even more engaging.”

However Lorna notes that “with rising rates of interest on car finance” and Brits across the country feeling the pinch, “many will maintain on to their ­present automobiles for longer moderately than upgrading”.