Why Now is the Best Time to Register Your 25-Plate Car
If you’re thinking about getting a brand-new car with a 25-plate, now is the time to act. With Vehicle Excise Duty (VED) changes coming into effect from 1st April 2025, it’s crucial to understand how these updates could impact you. For the first time, electric vehicles (EVs) will no longer be exempt from road tax, and many drivers—particularly those with higher-emission models—will see increased costs.
What is VED?
Vehicle Excise Duty (VED) is an annual tax paid by vehicle owners for driving or keeping a vehicle on public roads. The amount payable depends on various factors, including vehicle type, registration date, and CO2 emissions. From April 2025, VED changes will affect both new and existing vehicle owners, meaning that even if you already own an EV or a low-emission vehicle, you may start paying road tax for the first time.
What’s Changing in Vehicle Tax?
From 1st April 2025, new car tax rates will reshape the taxation landscape for UK drivers. You’ll need to check how these changes specifically apply to your vehicle. Traditionally, electric cars have been exempt from VED, but this is set to change. As of April 2025, all cars—including EVs—will be subject to road tax, with rates aligned to CO2 emissions. These changes will have a notable impact on vehicles across the range, particularly those with higher emissions. For example:
Range Rover V8 & Defender OCTA Customers
The upcoming VED changes will have a significant impact on high-performance SUVs such as the Range Rover V8 and Defender OCTA. With CO₂ emissions well above 255g/km, these vehicles will see an average tax increase of £2,745 from 1st April 2025. Buyers considering these models should factor in the higher first-year tax costs when making their purchasing decisions.
Defender Customers
The Defender remains a popular choice for those seeking a capable off-roader, but with CO₂ emissions typically ranging between 230-250g/km (depending on the engine variant), owners will face an average increase of £2,340 in VED from April 2025. This rise reflects the new tax bands targeting higher-emission vehicles, making it important for buyers to register before the deadline to avoid the additional cost.
Evoque Diesel Customers
The Range Rover Evoque Diesel, known for its balance of luxury and efficiency, still falls within a taxable CO₂ band, leading to a more moderate increase of £680 in VED from 1st April 2025. With emissions generally between 140-170g/km, Evoque Diesel drivers will experience smaller yet notable changes in road tax costs, reinforcing the importance of early registration to take advantage of current rates.
Audi Customers
The average CO₂ emissions for new Audi models vary depending on the specific model and engine type. For instance, the Audi A4 Diesel Avant 40 TDI 204 Quattro Sport emits approximately 142g/km of CO₂. Similarly, the Audi A6 with a 40 TDI engine has CO₂ emissions around 147g/km. These figures suggest that Audi vehicles typically fall into mid to higher VED bands, leading to moderate increases in road tax under the new system.
Volvo Customers
Volvo offers a range of vehicles with varying CO₂ emissions. For example, the Volvo XC40 with a 1.5-litre T3 petrol engine emits approximately 131g/km of CO₂. However, Volvo’s commitment to electrification means many of their newer models, such as the fully electric EX30 and XC40 Recharge, have zero tailpipe emissions, potentially resulting in different VED implications compared to their internal combustion
How the Changes Affect Electric and Hybrid Vehicles
Currently, electric, zero-emission, and low-emission cars, vans, and motorcycles benefit from a £0 VED rate. This will be a significant shift for many who are used to the current system. Here’s a breakdown of how different vehicles will be affected:
Electric, zero or low-emission cars registered on or after 1st April 2025 • You will need to pay the lowest first-year rate of vehicle tax, set at £10 from 1st April 2025. • From the second tax payment onwards, you will pay the standard rate of £195. Electric, zero or low-emission cars registered between 1st April 2017 and 31st March 2025 • These vehicles will now be subject to the standard tax rate of £195 per year. Electric, zero or low-emission cars registered between 1st March 2001 and 31st March 2017 • These vehicles will move to the first band that has a VED value, expected to be £20 per year.
Expensive Car Supplement
The DVLA has confirmed that new electric and zero-emission cars priced over £40,000 will attract the standard rate, plus the expensive car supplement for the first five years of ownership.
Why Register Before 31st March 2025?
With these upcoming changes, registering your vehicle before 31st March 2025 allows you to take advantage of the current VED system and avoid the immediate impact of rising costs. Waiting until after 1st April means you’ll be paying the increased rates from day one, which could affect your overall budget. With the release of the 25-plate, now is the perfect time to upgrade your vehicle. By securing your new model before 1st April 2025, you can lock in today’s tax rates and avoid the upcoming increases. Cars must be registered by 31st March 2025 to qualify—get in touch today to start your new car journey!