Mercedes-Benz Road Tax Prices 2017
If you’re planning to buy a new Mercedes-Benz and register it with the DVLA after April 1, be aware that the way road tax or Vehicle Excise Duty (VED) is calculated is changing and creates some clear motoring winners and losers with increases of more than 1000% over 3 years in some cases.
Some winners and losers from the April Vehicle Excise Duty change
The change, from the Summer Budget 2015, created a shock increase and will hit many car buyers hard. Bizarrely, it appears those most hit hard will be owners of low emission but expensive cars. The change does not affect any vehicles registered with DVLA before April 2017.
How is the new rate of VED / Road Tax calculated?
- VED for the 1st year is based on the CO2 emissions of the vehicle and most new cars will be subjected to higher VED in their first year.
- After the 1st year, the amount of VED to be paid is based on the type of fuel the vehicle uses.
- A flat rate of £140 per year will apply for petrol and diesel engine models
- A rate of £130 per year for hybrids, bio-ethanol and LPG engine models
- Vehicles with zero CO2 emissions will not have to pay VED.
For vehicles costing more than £40,000, after the first 12 months, VED is based on the fuel the vehicle uses and an additional payment of £310 per year for the next five years. After 5 years, a standard rate of VED is payable depending upon the type of fuel.
What’s the effect on some Mercedes cars?
The effect on new Mercedes cars is wide ranging with owners of some having to find an extra £1,020 over three years. Worst hit are more expensive hybrids which ironically have been engineered to help meet the global agenda for CO2 emissions.
Set out below is a selection of cars ranked by CO2 emissions and the impact of the new VED over 3 years compared to the previous VED.
| List price | CO2 g/km | Over 3years
with previous VED |
Over 3 years
with new VED |
|
| MercedesC220d
AMG Line Premium Convertible Auto |
£42,970 | 123 | £330 | £1,060 (increase £730) |
| MercedesC220d
AMG Line Premium Convertible Auto |
£41,245 | 122 | £330 | £1,060 (increase £730) |
| Mercedes S300h L
AMG Line 4 door Auto |
£73,375 | 121 | £330 | £1,060 (increase £730) |
| Mercedes C250d
AMG Line Premium Plus 4 door Auto |
£40,195 | 117 | £90 | £1,060 (increase £970) |
| Mercedes E200d
AMG Line Premium 4 door Auto |
£39,730 | 112 | 90 | £440 (increase £350) |
| Mercedes c300
Blue Tec Hybrid AMG Line Premium Auto |
£41,330 | 99 | £0 | £1,020 (increase £1,020) |
| Mercedes GLE 500e Hybrid AMG line Auto 4 Matic |
£64,995 | 84 | £0 | £1,000 (increase £1,000) |
These VED changes are sure to generate lots more revenue for the UK Government and as a car buyers we will need to factor in the VED more carefully into running costs. Car experts, Parkers, actually state that their research suggests over 90% of extra revenue to the Government will be generated from owners of low CO2 vehicles. It seems very unfair that many of the cleanest models such as Hybrids will see an astonishing the VED cost rise while many models emitting more CO2 may actually enjoy reductions.
