Graham Hill, Car Finance Expert Gives The Lowdown On The New Showroom Tax

Monday, 5. April 2010

Lease rates will have to increase for some of the larger ‘gas guzzlers’ as a result of the new showroom tax. However, there are some winners. If your new car spits out less than 130 g/km of carbon dioxides then you will pay no showroom tax and low road fund licence (car tax). The highest showroom tax is £950 for vehicles throwing out over 255 g/km of carbon dioxides. Aimed at discouraging large environmentally unfriendly cars the higher cost may put some off but I would suggest not many. The showroom tax also covers the first year’s road fund licence.

Band	CO2 (g/km)	Showroom Tax	Road Fund Licence
A	Up to 100	£0	£0
B	101-110	£0	£20
C	111-120	£0	£30
D	121-130	£0	£90
E	131-140	£110	£110
F	141-150	£125	£125
G	151-165	£155	£155
H	166-175	£250	£180
I	176-185	£300	£200
J	186-200	£425	£235
K	201-225	£550	£245
L	226-255	£750	£425
M	Over 255	£960	£435

Whilst this will all no doubt result in a lot of sneering from those that sneer at people standing outside in the freezing cold having a cigarette and those having a chat with a friend on the phone, pressed against their ear, whilst driving you can’t tell from the look or age of the car if they are good or bad for the environment. I was talking to a couple of neighbours, one of whom drives a rather elderly Rover 75 whilst I drive a year old Mercedes. The sneering was aimed at me until I told them that I paid £175 for my road fund licence whilst the neighbour just paid £245 for his – who’s sneering now? Think I may even have to re-consider my political position given the greenness of the car! Monster raving loonies it is then! By Graham Hill