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VED rate change and what it means for new car buyers

As of April 1, 2017, the Vehicle Exercise Duty CO2 bands are changing for all new cars. In short, low emission cars that would previously have been VED exempt will now have a fee for the first five years of ownership. The first year fees are either less or more than the subsequent years depending on the band. The first year fees can be hefty if you buy a less economical car – anything up to a staggering £2,000 (for cars over 255 g/CO2/ km). So, this is serious stuff for new car buyers. The only new cars exempt from VED under the new scheme are zero emissions cars (totally electric).

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