Thankfully rates drop in their second year for bands H to M. There are 13 tax bands with costs ranging from £0 for a brand new car to £1,090 for band M. Vehicle excise duty (VED), commonly known as road tax or car tax, is based on how environmentally-friendly a vehicle is. Paying less tax is one way to drive down the cost of your next car, and you don’t have to buy an electric or diesel car to do it.
Could how much you pay in tax be the answer? Motoring might be cheap right now, but any extra saving you make can help.
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