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2017 road tax changes will increase car prices

New road tax (or VED) rates come into effect in the UK from 1 April and could increase the price of your new car by up to £500, even if you order it before then.

Why does road tax affect car prices?

Your first year of road tax is included in the ‘on-the-road’ price of your new car. When the tax rate changes, so too will the overall price of the car.

Read our 2017 road tax rates guide for more about the price of road tax from 1 April. Find out how much your next car will cost to tax over three years after the tax changes by reading our guide to 2017 car-specific tax changes.

Will 2017 road tax changes make my car more expensive to buy?

If your brand-new car is registered on or after 1 April 2017 you have no choice but to pay the new rates. Registration of a new vehicle usually happens when you pick-up it up from the dealership and pay off the remaining balance or sign the finance agreement. Be sure to check when this will be with your dealer as it is crucial to the tax rate you will pay.

How to avoid paying more for your car in early 2017

You can still buy a brand-new car and pay the current rates so long as it is ordered, delivered and registered before 1 April 2017.

Here’s how the tax change will affect new-cars, depending on where the car is being sourced from:

Factory orders – Because there’s a delay between ordering a car and it being built (a so-called lead time), you will need to move fast to make this deadline and it will already be too late to order many cars and avoid the price rise.

In-stock cars – Order a car from a dealer’s stock and it can often be delivered and registered in just a few days. Stock changes fast however, and we expect demand to rise as 1 April approaches. Contact your chosen dealer now to avoid disappointment.

Pre-registered, nearly new or used cars – Because these cars have already been registered, the tax rate and overall price of the car remains the same, even after 1 April.

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