What makes a used car cheap to tax?

How is vehicle tax worked out on a used car?

Vehicle tax is worked out from the date the car was first registered, not from the day you buy it. A car first registered between 1 March 2001 and 31 March 2017 is taxed by its CO2 emissions band, so two cars of the same age and size can cost very different amounts to tax. A car first registered from 1 April 2017 is taxed at a standard yearly rate instead, with an extra charge for five years if its list price when new was over the threshold.

That one rule explains most of the confusion. The registration date decides which system the car sits in, and nothing you do later changes it. GOV.UK publishes the rate tables, so you can look up a band before you commit to anything.

Which used cars are cheapest to tax?

The cheapest used cars to tax are usually small petrol cars from the emissions-band years, because the band follows the CO2 figure recorded for that car. A small engine in a light body puts out less CO2, which puts the car in a lower band, which is why a supermini from 2010 can be one of the cheapest things on a forecourt to keep taxed.

A fair example on our forecourt is the 2010 Volkswagen Polo 1.2 at £2,995. It is the shape of car that tends to sit in a low band: small engine, light, nothing exotic. Look at the car's own figures rather than assuming — two cars of the same model and year can sit in different bands depending on the engine and trim.

Why can a newer car cost more to tax than an older one?

Because from 1 April 2017 the emissions band stopped setting the yearly rate. Cars registered from that date pay a standard yearly rate whatever their CO2 figure, and if the car's list price when new was over the threshold there is an extra charge for five years. So a frugal small car registered after the change can cost more each year to tax than an older, thirstier one in a low band. It feels wrong, but that is how the two systems sit side by side.

Does the tax come with the car when I buy it?

No. Vehicle tax does not transfer with a car. The new keeper must tax it before it is driven on a public road, and that can be done straight away online using the reference from the V5C. We cover this in more detail on do you need to tax a used car before driving it home. The same goes for insurance: a car must be insured before it is driven on a public road, including the drive home.

What paperwork do I need to tax it?

You need the reference number from the V5C paperwork for that car. When a car changes hands the seller tells the DVLA, and the new keeper is sent a new V5C log book in the post. There is more on what should come with the car on what paperwork should come with a used car.

What else makes a used car cheap or dear to run?

Tax is one line on the yearly bill, and rarely the biggest. The rest comes from fuel, insurance, tyres, servicing and whatever the car has been putting off. A car needs its first MOT by the third anniversary of its registration and then every year after that, so there is an annual check on the calendar whatever you buy.

A quick checklist before you decide a car is cheap:

• Check the CO2 band or the registration date, so you know which tax system it is in.
• Check the MOT history free on GOV.UK with the registration number — every test result, the advisories and failures, and the mileage recorded at each test.
• Read the advisories, not just the passes. Advisories are the bill that has not arrived yet.
• Look at tyre sizes and how recently belts or fluids were done.
• Ask what the car will cost to insure for you, before you fall for it.

How does ONECARS help with this?

Every car we sell is checked on 34 points by ONEFIX, our own workshop on the same site at Plas Acton, Wrexham, and the list is published at how we check our cars. Every car page carries the car's photographs, its full spec and, where the car is old enough to have been tested, its MOT history from the DVSA test by test, so the numbers that decide the running costs are in front of you before you ask us anything.

There is no admin fee: the price shown is the price paid. If you want a car held while you work out insurance and tax, a reservation holds it for fourteen days, and within those fourteen days it can be cancelled for any reason and the fee refunded in full. If you buy online and have the car delivered, that is a distance sale: you have fourteen days from delivery to change your mind and return it. Delivery is free within 20 miles of Plas Acton on weekdays, in hourly slots, with the car checked, valeted and fuelled before it leaves.

And after the sale, ONEFIX next door services, repairs and MOTs it, so the yearly bill stays with people who already know the car. Browse used cars or get in touch if you want us to talk you through a particular car's figures.