A research study by automobile data professional CAP has exposed that the expense of taxing some seven-year-old vehicles is now around a third of their overall value.
CAP stated that it believes that the issue stemmed from modifications to automobile exercise task (VED) bands, which were introduced in 2006 to penalise higher CO2 vehicles.
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This indicates that vehicles registered considering that March 23 2006, with emissions between 226 as well as 255g/km now expense £475 to tax.
A 2006 Renault Laguna 3.0 Initiale automobile with 237g/km now costs £475 to tax – nearly 35 per cent of its value – while a 2006 Citroen C5 3.0 special automobile likewise costs £475 to tax, which is a lot more than 33 per cent of its value.
According to CAP, the risk is that such vehicles would swiftly ended up being worthless, in spite of creating fairly low emissions, since older, less cost-effective automobiles tend to be driven less.
CAP has called on the government to lower VED rates for vehicles that autumn into the brackets L as well as M after a specific age in buy to stop a squander of automobiles that do fairly bit damage to the environment. 
A spokesperson for CAP stated that scrapping serviceable vehicles for the benefit of a tax disc “makes a mockery” of environmental taxes, since owners already tend to limit their mileage since the vehicles are fairly uneconomical.
He said: “We are now in the crazy circumstance where completely great vehicles have ended up being uneconomical to own since the expense of taxing them might soon technique half their car’s value.
“This indicates a lot more as well as a lot more vehicles will ended up being unsalable as well as will have to be scrapped long before the end of their beneficial life.”