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At Lookers Honda, we like to take care of our customers, which is why we wanted to inform you of a big change coming soon that may impact your future vehicle ownership.

The government is restructuring road tax bands or Vehicle Excise Duty (VED), which will impact anyone buying a new car from 1st April 2017, and it may prove to be a good move for you to buy a new car before this date.

What are the changes?

The new road tax regulations will mean higher tax prices for all new cars in the first year of registration, based on emissions. From the second year onwards, the CO2 scale becomes irrelevant, as two flat rates will then be applied – a £0 VED rate for zero-emissions vehicles, and a flat annual rate of £140 for all other cars.

Cars costing over £40,000 will also be liable for the £140 rate from year two, they will also be forced to pay an additional annual ‘supplement’ of £310 for the first five years.

As an example, for a vehicle that costs less than £40,000 and emits just 120g/km CO2, tax will cost £860 over five years of ownership on the new structure, compared to £150 on the current structure.

Why is this happening?

With more and more vehicles falling into VED band A with CO2 emissions of less than 100g/km, most new cars are paying little to no tax, so the government is making the changes to try and recoup some of that lost revenue.

Lookers Honda, here to help

Don’t worry as it’s not all bad news – vehicles registered before 31st March 2017 will adhere to the current and arguably more favourable tax structure.

Below, we have outlined the changes so you can see when would be most cost-effective for you to find your ideal Honda – we don’t want you to miss out or have to incur extra costs as a result of buying just a few days later.

Register before the rise and get in touch with Lookers Honda today! Click Here for your nearest Lookers Honda Dealership details

CO2 Emissions (g/km)First Year RateStandard Rate




1 - 50



51 - 75



76 - 90



91 - 100



101 - 110



111 - 130



131 - 150



151 - 170



171 - 190



191 - 225



226 - 255



Over 255