Petrol and diesel owners may have to “reconsider” owning a vehicle altogether as car tax rates rise from the spring.
Paul Daly, director of InsureDaily.co.uk, said motorists needed to look at the “value of owning a car” due to the increased costs of running one.
It comes as new Vehicle Excise Duty (VED) rates are set to hit road users from April 1, 2024.
Costs will increase in line with Retail Price Index (RPI) inflation but some owners will still have hundreds of pounds added to their bill.
It comes while annual car insurance premiums are up by more than 50 percent while petrol and diesel prices remain well above figures recorded two years ago.
Speaking to Express.co.uk, Paul said: “For some vehicle owners, it could be time to reconsider the value of owning your own car compared to the costs of running the vehicle.
“There are alternative options, including temporary insurance cover for drivers borrowing a car.” According to finance experts at Pete Barden, VED fees will rise by around six percent this year.
Most owners will see just a slight rise but those with the most polluting petrol and diesel models will be heavily affected.
Those owning cars registered on or after April 1, 2017, will see standard rates rise from £180 to £190 per annum.
Cars registered before 2017 but after 2001 will see varying increases based on their overall emissions.
Vehicles emitting over 255 g/km of CO2 will be hit with the biggest £40 increase with charges up from £695 per year to £735.
Models producing between 226 and 255 g/km of CO2 will also jump £35 from £675 to £710.
The largest single price rise from April will affect owners buying a completely brand-new highly polluting vehicle.
Cars producing over 255 g/km of CO2 registered after April 1, 2023, will have to pay a first-year tax charge of £2,745.
This is a staggering £140 more than the £2,605 fee slapped on new owners just last year.
Alongside this, those owning expensive vehicles valued at over £40,000 will be forced to pay the Expensive Car Supplement charge for five years since registration.
This fee is also on the up with the charge set at £410 instead of £390 back in 2023. It means some owners of new vehicles will pay £160 more than if they had secured the model 12 months ago.
