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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.

Mercedes-Benz-Road-Tax-Prices-2017-01

 

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?

  1. 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.
  1. 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
  1. 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.

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