The Cost of Tax Discs could force cars off the roads
June 18, 2013
 There could be thousands of used cars forced off the roads, according to a new study by CAP, the vehicle data expert. It has been unveilved that apparently, the cost of taxing some seven year old vehicles, actually comes to a third of their total value.  

CAP has said that the problem is likely to have started from changed to the VED, Vehicle Exercise Duty bands, which were introduced in 2006 to penalise vehicles that produced higher levels of CO2. This means that vehicles that were registered from March 23 2006, with emissions between 226 and 255 g now cost around £475 to tax.
A Renault Laguna 2006 3.0 Initiale Auto model with 237 g costs around 35% of it's value, whilst a Citroen C5 3.0 Exclusive Auto also costs around 33% of it.

CAP has explained that the danger is that such vehicles would very quickly become worthless, regardless of producing low emissions, due to the vehicles being older, less economical vehicles are usually driven a lot less.

The Government have been called on by CAP to lower Vehicle Exercise Duty rates for vehicles that fall into the L and M brackets after a certain age, to try and prevent the wastage of vehicles that do not actually do much harm to the environment.

A spokesperson for CAP explained that scrapping serviceable cars just because of a tax disc makes a joke of environmental taxes, due to the fact that owners already limit their mileage due to their cars being rather uneconomical. He went on to say that there is now a strange situation where cars that are perfectly good have become too uneconomical to own due to the cost of taxing them, which could very soon approach half of the car's value. This means that more and more vehicles will become unsalable and will have to be scrapped way before they should be. 
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