Whether you’re after a small city car, a spacious family SUV, or something a bit more luxurious, there are plenty of second-hand options on the market that offer super-low tax rates.
If your car was registered after April 1, 2017, its car tax, officially called Vehicle Excise Duty (VED), is calculated based on its CO2 emissions measured during official tests.
During your first year of owning a new car, the tax you pay is based on its emissions figure, and after that, you’ll pay a flat rate of £195 per year.
An additional ‘Expensive Car Supplement’ will also apply to those who have purchased cars costing more than £40,000.
For cars registered before April 1, 2017, the yearly tax is based on CO2 emissions.
Therefore, if you are looking to minimise your car tax expenses, driving an older, low-emissions car is the best option.
There are different tax bands for older cars as vehicles that fall under bands A and B cost £20 a year, while those in band C cost £35 a year.
To fit into those categories, cars need to emit less than 120g/km of CO2 based on official stats. If they emit more, the cost jumps to £150 a year or higher.
If you’re looking to potentially save hundreds of pounds in the long term, then Harry Waring, Motoring Specialist at Cazoo, has shared the top 10 cars you could buy to make the most of low road taxes.
Top 10 cars to buy with the lowest road taxes
BMW 2 Series
If you opt for the 218d or 220d diesel models of the BMW 2 Series registered before April 1, 2017, you’ll only pay £20 or £35 per year.
This sort of car can offer “premium quality” and “sporty performance” without having to worry about a “hefty tax bill”.
Hyundai i10
The 1.0 SE Blue model of the Hyundai i10 from early 2017 offers a £20 tax cost.
Other pre-2017 models, such as the 1.2-litre SE and Premium models with manual gearboxes cost less than £35 a year.
Waring adds: “This car is not only affordable to tax but also cheap to run, with excellent fuel economy and a surprising amount of interior space for its size.”
Ford Fiesta
Previous-generation diesel models of the Ford Fiesta with 1.5 TDCi, 1.4 TDCi or 1.6 TDCi engines cost as little as £20 a year in tax.
Waring adds: “The 1.0 EcoBoost petrol engines also qualify for low tax rates while delivering impressive fuel efficiency.”
Mazda 3
The 1.5d and SkyActiv D 105 models of the Mazda 3 are completely tax-free, while the 2.2 diesel will only cost you £20 a year if you choose a manual transmission.
Waring says: “Even petrol options like the 1.5 and 2.0-litre models are budget-friendly, costing just £35 a year in tax. Just be sure to look for models registered before 1st April 2017.”
Mercedes-Benz GLA
If you’re looking for a luxurious SUV with low running costs, then the 2014-2017 Mercedes-Benz GLA could work for you.
Waring explains: “Some diesel models such as the 200d (registered before 1st April 2017) can cost as little as £35 a year in tax. Plus, you’ll enjoy the prestige of a Mercedes badge and the practicality of an SUV.”
Mini Hatch
The Mini Hatch has been on sale since 2014, meaning there are plenty of examples that fall before the April 2017 registration date.
This includes the 1.5 Cooper D model which could have as low a rate as £20 a year.
Waring adds: “Some combinations of that particular engine with certain options push the CO2 emissions up into the next tax bracket, but they will still cost just £35 a year.
“Other models to look out for in the £35 bracket are the diesel-powered 2.0 Cooper SD and anything with the 1.2-litre Mini One petrol engine.”
Nissan Qashqai
A Nissan Qashqai from 2014-2017 with a 1.5 dCi or 1.6 dCi diesel engine will cost between £20 and £35 a year in road tax.
Waring adds: “It’s practical, well-equipped and incredibly economical, making it a great fit for those looking for cheap running costs without compromises.”
Peugeot 3008
Diesel models of the Peugeot 3008, such as the 1.6 BlueHDi, produce such low emissions that they qualify for £20 annual tax.
Meanwhile, petrol engines such as the 1.2 PureTech 130 cost just £35 a year.
Renault Kadjar
If you’re hoping to pay £20 a year in road tax then pre-2017 models of the Renault Kadjar can work.
These need to be equipped with the 1.5 DCi diesel engine, specifically in Expression + or Dynamique Nav trim level.
Waring adds: “Similar models with the Dynamique S Nav, Signature and Signature S Nav trim levels also come with the attractive £20 a year annual tax fees, while the later 1.6 diesel models cost just £35 a year to tax.”
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Volkswagen Golf
Diesel models of the Volkswagen Golf built between 2013 and 2017, such as the 1.6 TDI 105 and 110 diesel, along with the 1.0 TSI petrol, often cost as little as £20 a year in road tax.
Waring adds: “Other models, depending on their power and release date, cost either £20 or £35 a year to tax— including the 2.0 TDI diesel and 1.4 TSI petrol models.”
