Sales of new cars plummet as vehicle tax increase comes into force – Telegraph.co.uk

Posted: Thursday, May 04, 2017

Under the updated set of rules for Vehicle Excise Duty (VED), which came into effect on April 1, buyers of new cars pay tax based on the car’s emissions for the first year. After that there is a flat fee of £140 for petrol or diesel vehicles, while cars costing more than £40,000 will be subject to an additional £310 surcharge.

Demand for new cars fell among private buyers, businesses and large fleets. The decrease was sharpest among private buyers, where the number of new car registrations fell by 28.4pc to 59,912.

There was a 27.3pc fall in registrations of diesel cars, and a 13.1pc drop in registrations of petrol vehicles.

The best-selling cars of the month were the Ford Fiesta, of which 4,957 units were sold, and the Nissan Qashqai, with 4,430 sales.

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