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Road Tax Surge Crushes Older Cars
31 Mar
Summary
- Older cars face high taxes, some nearly their value.
- Scrappage rises sharply for specific models like Freelander.
- Environmental concerns weigh against new car production.
Owners are increasingly scrapping vehicles over 20 years old due to a substantial tax increase, a situation described as a 'tax trap'.
Annual Vehicle Excise Duty (VED) rises mean some car owners face charges approaching their vehicle's market value, which is often less than £1,500. This disproportionate tax burden, especially for cars emitting over 225g/km of CO2, is driving owners to scrap these vehicles rather than pay taxes that could reach £790 by April 2026.
Internal data reveals significant spikes in scrappage for certain models. The Land Rover Freelander experienced a 550% increase in scrappage between 2024 and 2025. More recent data shows a 323% rise in scrap quotes for the VW Golf since the last quarter of 2025, with the Freelander close behind.
Experts note that many family cars are now worth less than their annual tax bill, making them unviable for households struggling with affordability. This is occurring despite scientific calculations suggesting it is more environmentally friendly to keep older cars on the road than to produce new ones.
A petition on the UK parliament website has garnered nearly 50,000 signatures, calling for a 50% reduction in VED for vehicles aged 20 to 39. However, the Treasury has stated it has no plans to reduce these VED liabilities, emphasizing that motoring tax revenue funds vital public services and infrastructure.
