Older drivers above the age of 80 will be impacted by new car tax changes which came into effect from today. Analysis from Go.Compare car insurance looked at the extra cost of first-year Vehicle Excise Duty (VED) rates for new car buyers based on each generation on the roads.
If buying habits remain the same, the so-called ‘silent generation’ could be asked to splash out almost £3million in extra costs. The term ‘silent generation’ traditionally covers those born in the years 1928 to 1945, meaning road users between 80 and 97 years old. Motorists in this demographic could end up paying £2,924,456 in first-year VED fees due to the changes.
Go.Compare car insurance reviewed Department for Transport figures on the number of new private vehicles registered in the first half of the 2024 tax year.
Analysts applied the old and new first-year rates of VED to these vehicles to estimate how much more new car buyers will have to pay if buying habits remained exactly the same.
Tom Banks, car insurance expert at Go.Compare, said: “Unfortunately, some groups will be worse impacted by the rising VED rates than others, which is mainly down to the type of cars they tend to buy.”
Older drivers tend to be more sceptical of electric vehicles and will usually verge towards buying traditional petrol and diesel models.
Likewise, vehicles emitting between 226 and 255g/km of CO2 will be hit with a £4,680 annual rate, up from the £2,340 charge formerly applied.
Tom added: “The increased rates mean all new car buyers will pay more this year. To cut these costs, go for a low-emissions car at the showroom if you can, as that will place you in the cheaper tax bands.
“Or, consider getting a ‘nearly new’ vehicle instead. This will give you that new car feeling for a fraction of the price, and allow you to dodge the increased tax.”
