New car tax bands and VED rates mean 'one in three drivers will struggle'

New car tax bands and VED rates in 2025 will leave "one in three petrol and diesel drivers struggling" . 30 per cent of drivers were worried about upcoming tax hikes which will make it more expensive to travel in the UK. With households up and down the country facing a cost-of-living crisis, the research found that six in ten (60%) drivers are worried about rising costs.

Many are having to look at ways to cut back when it comes to saving money on their vehicle. Lisa Watson, Director of Sales at Close Brothers Motor Finance, said : “As a motorist it can often feel like you’re being financially hit from all angles. And with soaring costs, drivers all over the country are looking at ways to make cutbacks.

Although inflation is slowing, costs are still rising whether that’s insurance hikes, the price at the pumps of the cost of purchasing a vehicle. READ MORE Spain drafts strict new alcohol laws affecting UK tourists 'aged 18 or over' "This, combined with new schemes such as ULEZ – simply driving your vehicle from A to B feels like an added luxury rather than an essential part of life. To cut costs, many are now having to explore other measures to stretch their finances further – including shopping around for cheaper fuel, car sharing or even charging loved ones for fuel.

“As drivers look to make cutbacks this could have a knock-on effect on their next car purchase and in turn, change the type of vehicle they want to purchase. For motor dealers it’s essential they e.