Petrol and diesel owners may have to 'reconsider' having cars as April 1 change approaches

Vehicle owners will see increased costs (stock image)

Motorists with petrol and diesel cars may have to ‘reconsider’ owning a vehicle as car tax rates rise from the spring. New Vehicle Excise Duty (VED) rates are set to come in from April 1, 2024.

The costs will rise in line with Retail Price Index (RPI) inflation. Some owners will see hundreds of pounds added to the cost of owning a car, according to The Express.

Paul Daly, director of InsureDaily.co.uk, said motorists needed to consider the “value of owning a car” due to increased running costs. Annual car insurance premiums have risen by more than 50 per cent, while fuel costs remain higher than figures from two years ago.

Mr Daly 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.”

Finance experts at Pete Barden said VED fees will rise by around six per cent this year. Most owners will only see a small increase but those with petrol and diesel models that are more polluting will be heavily affected.

Those who own cars registered on or after April 1, 2017, will see their standard rates rise from £180 to £190 per annum. Cars registered before 2017 but after 2001 will see increases that vary based on their overall emissions.

Vehicles that emit more than 255 g/km of CO2 will be hit with the biggest increase of £40 with charges up from £695 per year to £735. Models producing between 226 and 255 g/km of CO2 will also increase by £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 more than 255 g/km of CO2 registered after April 1, 2023, will have to pay a first-year tax charge of £2,745 – an increase of £140 from than the £2,605 fee for new owners last year.

Those who own vehicles valued at over £40,000 will have to pay the Expensive Car Supplement charge for five years since registration. This fee is also increasing with the charge set at £410, up from £390 back in 2023, meaning some owners of new vehicles will pay £160 more than if they had secured the model 12 months ago.