CAP has warned "thousands of good cars" could be scrapped as changing CO2 emissions limits could raise the cost of their tax disc to an unsustainable proportion of their worth.
The vehicle valuation firm claims research it has conducted demonstrates the cost of taxing some seven-year-old cars could now amount to a third of the vehicle’s value.
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Cars registered since 23 March 2006 with CO2 emissions between 226 and 255g/km will now cost £475 to tax. Those emitting more than 225g/km will cost £490 to tax.
CAP believes the costs risk making such cars worthless in the second-hand market despite being able to run for many years. Instead, the company believes Vehicle Excise Duty rates for cars in these brackets should be lowered after a set amount of years, as owners tend to minimise the amount they drive less-efficient cars.
richard.brown@timetric.com
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