Vehicle Excise Duty (VED), or road tax as it's more commonly known, has undergone significant changes recently. From updating the tax on electric cars to adding a surcharge on 'luxury' models over a certain price range, the amount you'll pay will be more focused on when the car was registered, the emissions it produces, the fuel type, and how much the car costs when new.
In 2026, most modern used cars fall into the £200-a-year VED bracket, while those with a car that, when new, costs over £40,000 (or over £50,000 for EVs), will pay up to £640 for the first 5 years, before it drops to £200. This is known as the expensive car supplement, or luxury car tax, which adds an extra £440 to the first 5 years of the car's road tax.
These changes (effective as of 1st April 2026) unfortunately mean that the days of zero road tax are pretty much a thing of yesteryear. However, there are still a number of savvy choices you can make to keep VED costs at a minimum, allowing you to spend more time enjoying your vehicle than worrying about the next hefty bill. We've spotlighted some of the best used cars with low road tax, from efficient superminis to spacious SUVs, helping you save money every year.
- Ford Fiesta
- Dacia Spring
- Renault 5 E-Tech
- Nissan Qashqai
- MG4 EV
- Hyundai Tucson
- Volkswagen Golf
- Dacia Jogger
- Mazda MX-5
- Skoda Kodiaq
- Frequently asked questions
Ford Fiesta
If you're after a low-tax, economical small car, you can't go far wrong with a Ford Fiesta. Great first-time cars for driving newbies and a perfect about-town car, with plenty of trim options available.
To keep costs low, look for pre-2017 models, where you'll pay around £20 per year in road tax for the 1.5-litre TDCi diesel and 1.0-litre EcoBoost petrol engines. The EcoBoost may well be the more favourable one, as it combines everyday performance and impressive fuel economy (60mpg is achievable). Diesel variants remain the most obvious option for those knocking off big miles, though. After 2017, you'll be mostly paying £200 a year on all powertrains, so select the one that suits your needs.
Servicing costs are also very reasonable, since the Fiesta was always pitched as an affordable supermini, so wider running costs should be on the cheaper end. If you are considering an older, pre-2017 model, make sure its service history is up-to-date, to help reduce the risk of expensive maintenance jobs.
Search Used Ford FiestaDacia Spring
For those who want a low-cost car with low running costs and low road tax to boot, you can't really go wrong with a used Dacia Spring. One of the most budget-friendly electric cars on the market, the Dacia Spring is a fuss-free electric option for those who want to go green on a budget.
New, you'll only pay £10 tax in the first year due to its 0g/km CO2 rating, and because it doesn't reach the £50,000 luxury car tax threshold (it's nowhere near), it stays £200 every year after that. Its compact battery will charge from 20 to 80 percent in under 30 minutes and deliver 130 miles, which is perfect for the daily commute and any chores. Its nimble dimensions deliver a zippy driving experience too, which is ideal for those busy inner-city forays.
With a low insurance group, the Dacia Spring's combined costs make it a very economical used car to own, ideal for new drivers and urban dwellers.
Search Used Dacia SpringRenault 5 E-Tech
The Renault 5 E-Tech is a fun, retro-inspired hatchback that draws on its past and makes driving a joy again.
Being electric, it keeps VED low with £10 in the first year as a new car and £200 thereafter, while you'll get a 190-mile range on the entry-level Renault 5 and an improved 250-mile range on the upper trim. Speaking of which, there are two powertrain options to zip you around those country roads. 120bhp and 148bhp are on offer with the latter propelling you from 0 to 62 mph in a slick 7.9 seconds.
With vintage Renault 5 features throughout, it really leans into its heritage roots. But don't fear, it also comes with up-to-date tech, offering a digital display for the driver and a 10.25-inch central touchscreen for controlling all the vehicle's features and functions. The battery will charge from 15 to 80 percent in under 30 minutes, which is ideal for stopping to charge on longer road trips.
If you're after something a little sportier, look at the Alpine A290, the Renault 5’s hot-hatch cousin, which is more performance-oriented, while still landing in the same tax bracket, as it doesn't meet the luxury car tax bracket.
For retro-inspired energy packed into a surprisingly practical electric hot hatch, the Renault 5 keeps tax low and the fun high, making it one to seriously consider for everyday driving.
Search Used Renault 5 E-TechNissan Qashqai
If you're in the market for a family SUV, then a used Nissan Qashqai is an excellent place to start your search. With lots of models to choose from, you'll get a practical car with enough tech and interior space for comfort on long journeys.
Pre-2017 models benefit from the lowest road tax rates, starting from £20 per annum dependent on factors such as emissions. These options still make for brilliant everyday vehicles, but are becoming a touch outdated compared to today's standards. Opting for a newer model will see you pay the flat £200 per annum fee, but benefit from the latest technology, sharp new looks, and improved economy.
The Qashqai has been a strong seller in the UK for some time now, meaning there's a wide selection of them on the used car market at any given time, so finding one that meets your requirements won't be an issue.
Search Used Nissan QashqaiMG4 EV
The MG4 EV is an all-electric vehicle that sits between a small and mid-sized family car, with a striking performance option.
Offering a sporty profile, the it's ideal for transporting the family, with a trim called Extended Range offering a fantastic 338 miles and a long-range option offering 280 miles. Combined with a low £200-a-year road tax, it's pretty economical for those who love a long road trip and want to keep it green. And if you're after a car that's sure to surprise any performance driver, there is also a 429bhp XPower model which sprints from 0 to 62mph in 3.8 seconds. However, you will lose range, dropping to a still-decent 250 miles.
The MG4 EV sits under the EV luxury car threshold, so there is no extra road tax costs per year, and it comes with lots of tech and a comfortable interior. Plus, the charge times for 10 to 80 percent are 30 minutes for the long and 40 minutes for the Extended version, making it pretty quick to get you back on the road.
If you're after a functional all-electric family car that doesn't have the bulk of an SUV, can engage on the road, and keeps road tax costs in a reasonable range, then turn your attention to a used MG4 EV.
Search Used MG4 EVHyundai Tucson
For those looking for a medium-sized family SUV with good road tax options (if you select the right powertrain), you can't go far wrong with a Hyundai Tucson.
Its size makes it attractive for the family driver, with a pair of 12.3-inch screens across the top of the dash in later generations and plenty of space for four adults and five with a little squeeze.
If the lowest road tax is the ultimate priority, then opting for a pre-April 2017 model, will see you save a bit of money. A particular highlight is the 1.7-litre CRDi Diesel powertrain, which keeps road tax to £35 a year and has a generous fuel economy of 61mpg. Not only that, but it's EURO 6-compliant, meaning you won't pay a surcharge in ULEZ areas.
If you're after something newer, look at a late-model Tucson with the 1.6-litre PHEV petrol-hybrid powertrain, which will give you an average of 50mpg and a long 576-mile combined range. Road tax is £200 a year, but check the trim you're buying, as some higher-spec models have the expensive car supplement added, making it £640 a year.
It also earned a full five-star Euro NCAP safety rating, giving families extra peace of mind, while Hyundai’s strong reputation for reliability helps keep ownership stress-free.
Search Used Hyundai TucsonVolkswagen Golf
The Volkswagen Golf remains a firm favourite among UK motorists, thanks to its performance, handling, and reliability, which means you have plenty of choice when searching for one on the used market.
Most of the choices available to keep road tax to a minimum are pre-2017 and will have a 1.6-litre diesel engine. Just under 75mpg is possible on a combined cycle, so the fuel economy is rather impressive.
However, newer models feature sharper looks and the latest technology, so if your budget will allow, we'd recommend considering one from Volkswagen's latest line-up. Most of the variants available will fall into the flat £200 a year payment, but if your considering a model towards the very top of the range, double-check its price when new to ensure it falls below the luxury car tax threshold.
Typical of a modern Volkswagen, the build quality is exceptional throughout, with high levels of refinement on offer regardless of your engine choice.
Search Used Volkwagen GolfDacia Jogger
Seven-seat SUVs aren't always a low-cost option, so they tend to attract the additional luxury car tax added onto the VED. The Dacia Jogger, however, is a low-cost seven-seat SUV with a hybrid option, delivering excellent fuel economy and enough room to transport the whole family (and a few friends) about.
There are a number of powertrains to choose from, which are likely to cost you £200 a year in car tax. This includes a 1.0-litre three-cylinder petrol engine offering 47mpg, as well as a 1.8-litre full hybrid that delivers 61mpg.
In years gone by, Dacia models may not have been everyone's cup of tea. However, in recent years, the brand has made serious progress and now delivers an almost luxury car-feel for a fraction of the price of many of its competitors. The Jogger is a great example of this, offering big family mobility, for a small price tag.
Search Used Dacia JoggerMazda MX-5
If you're looking for a two-seater convertible with plenty of punch and driver engagement, while keeping costs at bay, a used Mazda MX-5 is an obvious choice.
The little roadster has been around for years, and although not a practical family car, it's designed for those who want a nimble drive with performance to match.
The MX-5's running costs can be kept down if you're savvy about the engine choice; going for the 1.5-litre keeps annual road tax at £200, while fuel economy is 45mpg. You still get good performance, thanks to the punchy powertrain, which delivers 132bhp and a sprint to 0 to 62mph in 8.3 secs. Going for the 2.0-litre gives you more performance with an output of 182bhp; however, it drops the fuel economy, and in some cases, the vehicle tax may rise above £200.
Engaging on the road thanks to its rear-wheel drive setup and manual gearbox, which really help you get the most out of the MX-5’s engine, this option is for those who want a sporty driving experience without higher running costs.
Search Used Mazda MX-5Skoda Kodiaq
It's possible to get a luxury 7-seater SUV that doesn't incur the expensive car supplement in the form of the Skoda Kodiaq.
The Kodiaq is a 5- or 7-seat large SUV that's perfect for growing families, being comfortable and spacious inside, with lots of eco-conscious features such as fabrics made from recycled plastic bottles and leather tanned with coffee bean waste. Plus plenty of tech throughout.
To get the lowest road tax, you'll be looking at entry level options, as any other trim incurs the expensive car supplement. However, it feels anything but entry-level. delivering tonnes of tech and a highly efficient powertrain.
Safe, spacious and surprisingly cost-effective to run, the Skoda Kodiaq backs up its premium feel with a five-star Euro NCAP rating and plenty of advanced tech.
Search Used Skoda KodiaqFrequently asked questions
Following recent changes to vehicle excise duty, the amount of car tax you will pay will depend on a number of factors such as emissions and cost price when new. Most owners of cars registered after 1st April 2017 will pay a flat £200 per year fee, while some may also be subject to an expensive car supplement of £440, for more premium vehicles.
To find your car’s tax band (VED), you need its fuel type, CO₂ emissions, and registration date, all of which are on your V5C logbook. You can then use the 11-digit reference number to check rates through the Vehicle Enquiry Service on GOV.UK.
Yes. Since April 2025, electric cars are no longer exempt from road tax (VED). New electric vehicles pay £10 in the first year, then £200 per year from year two onwards. Those costing over £50,000 will also be subject to the expensive car supplement.
The expensive car supplement, also known as the luxury car tax, is an extra charge added to the standard VED rate for petrol, diesel, and hybrid cars with a list price above £40,000. The supplement costs £440 per year and applies from years two to six of the vehicle’s life. For electric vehicles, the threshold is higher at £50,000, reflecting the typically higher purchase price of EVs.
Not taxing your car in the UK can result in a Late Licensing Penalty (LLP) of £80 (reduced to £40 if paid within 33 days). More serious cases involving no SORN may lead to an Out of Court Settlement (OCS) of £30 plus 1.5 times the unpaid tax, or court fines up to £1,000 (or £2,500 if a SORN vehicle is used on the road). Your vehicle may also be seized, which will incur additional storage costs until you prove it is correctly taxed.
From April 2028, electric and plug-in hybrid cars (PHEVs) will pay more tax. The government is introducing a new pay-per-mile eVED (Electric Vehicle Excise Duty) system. Electric car drivers will pay 3p per mile, while PHEV drivers will pay 1.5p per mile.
Discover your next car with Evans Halshaw
Choosing a low-tax option is not always the cheapest option when buying a used car. For example, a newer car with higher tax might have more economical running costs than an older car with lower tax.
The best way to keep an eye on car ownership costs is to be informed. As road tax rules change, and they will, you'll get an advantage by keeping up and checking how Vehicle Excise Duty (VED) changes over the years and where the thresholds lie.
Ready to get you the next used car? At Evans Halshaw, we keep a large selection of used models from popular brands at our dealerships across the country. Browse our latest stock online, or speak to one of our friendly brand experts at your nearest Evans Halshaw retailer, and they’ll help you find the right vehicle from a wide range of quality options.
