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Used Car Dealers Beware: VED Road Tax 2017 Changes

30th January 2017

Dealer Management System provider Dragon2000 explains the new Vehicle Excise Duty (VED) changes which come into force for new vehicles first registered from 1st of April 2017, telling motor dealers everything they need to know about the restructure, and the introduction of an additional tax on cars with a list price of over £40,000.

“But I sell used cars, what has new car tax rates got to do with me?” we hear you cry.

The new rules regarding additional tax, which lasts for five years, will clearly have implications for used car dealers both in the short term and in the future, and is explained in detail in our guide for used car dealers.

Still commonly referred to in the motor trade and by the public as “Road Tax” the current VED bands and rates were first introduced back in 2001, with cars producing under 100gCO2/km paying no tax at all.

However with more and more cars falling under the 100gC02/km band as car manufactures’ strive to meet the EU target of ensuring their vehicles produce no more than 95gC02/km by 2020, it was announced during the 2015 Summer Budget that there would be an overhaul of the current VED system, with only zero-emission electric cars with a list price of under £40,000 now set to be tax-free.

You can read the full article here: VED Road Tax Changes Guide for Car Dealers



Dragon2000 have been helping dealers and garages drive their businesses forward since 1995. Talk to our team today on 01327 222 333 or email sales@dragon2000.co.uk to find out how our dealer management system, car dealer websites and mobile apps can help your business increase profits and reduce costs.

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