DRIVERS are facing a £410 "stealth tax" that turns their mainstream motors into "luxury" vehicles. Inflation has resulted in almost half of all cars being dragged into the premium bracket, leading to extra charges for owners. Introduced in 2017, the Expensive Car Supplement (ECS) requires owners of "luxury" cars to pay more road tax .
When it first came in, the majority of vehicles on UK roads sat well below the £40,000 threshold. However, according to Auto Trader , the average price of a new car was £39,308 as of last year - up around £12,000 from five years before. Despite the significant increase in car prices , the threshold has remained frozen and doesn't look set to change.
READ MORE MOTORS NEWS If it was adjusted for inflation, the threshold would sit at £51,000 today. As such, the platform estimates that around 45% of new petrol and diesel models and 67% of new EVs surpass the £40,000 barrier. In practice, this means thousands of what were previously considered standard models being swept into the upper tax rate.
Owners of cars subject to the ECS have to pay £410 on top of their normal road tax for each of the first five years of registration. Most read in Motors The exact amount paid in total depends on when you car was registered, but for those from after 2017 will see a petrol or diesel motor cost £600 a year. If your car is registered before 2017, the amount changes based on emissions but, as an example, something like a standard Ford Focus would total aro.