Car tax changes as certain drivers face rise of nearly £2,000
Tax changes mean buying a certain type of vehicle will cost an average of nearly £2,000 more, experts say. Go Compare's analysis forecasts that van purchases will see an average hike of £1,732 due to increased Vehicle Excise Duty (VED) rates brought in this year.
Calculated with emissions in mind, van owners, predominantly utilising petrol and diesel, are set to be affected. Prior estimates by Go Compare indicated an additional £15.5 million in VED charges within half a year post-update, suggesting road users could face about £1,732 extra from April 2025.
Motoring expert Tom Banks has warned: "The increased VED rates will result in a big hit if you buy a brand-new van later this year, but there are things you can do to absorb the blow.
"The tax rates are based on CO2 emissions, so if you're able to, this is a good time to switch to a van using cleaner fuels in the cheaper tax bands."
Due to their emission levels, diesel vans often fall into the highest VED brackets, leaving their owners most exposed to tax hikes, reports the Express. Go Compare also says that in the first half of the 2025/26 financial period, owners may experience a stark rise averaging £1,807 per vehicle.
Research finds new petrol van purchases will generate an extra £1.2 million, amounting to £1,354 more on average for each petrol van.
However, those opting for a hybrid van under the incoming rules would need to shell out merely an additional £252 in tax for road use.
Hybrid van owners could save a staggering £1,500 annually compared to diesel van drivers, though they may face steeper initial costs.
Meanwhile, opting for an electric van incurs only £10 more each year in road usage fees, presenting a significant advantage for those with the means to invest.
The team at Go Compare have suggested that purchasing second-hand hybrid or electric vans could be a smart option, offering lower prices along with the same tax perks.
Tom said: "If you can't buy a suitable hybrid or electric van, you could go for a 'nearly new' one instead. This lets you enjoy a vehicle that's pretty much as good as new without breaking the bank, and means you can dodge the increased tax."
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