Best Cars with Low Car Tax

Owning and driving a car isn’t a cheap business. On top of the initial cost of the car, MOTs, fuel and insurance, you also have to take car tax into consideration when looking for your next car. To legally drive your car on the road in the UK, you need to have it taxed. 

But before we start, what factors affect a vehicle’s tax amount? If your car was registered between 1st March 2001 and 31st March 2017, then the amount you pay in road tax (or car tax) is normally dependent on the car’s CO2 emissions. These days, while it is still heavily impacted by your car’s emissions, there are other factors that impact the overall tax cost. 

Fact: The more CO2 your car pollutes, the higher your tax bill will be. However, there is more. If the price of your car is above £40,000 then you will have to pay an extra £335 per year for the first five years of ownership. Electric cars, which emit 0 g/km of CO2, are generally exempt from paying any road tax.

As motoring technology evolves and the pressure to reduce the impact the automotive industry has on our environment, car manufacturers are being forced to produce cars that won’t cost a driver extra in taxes. 

So what options do drivers have when they’re looking to reduce their car tax? Take a look at our top picks. 

Toyota Yaris Hybrid

The Toyota Yaris Hybrid is a huge seller across the UK and it’s quite clear why. The Yaris, along with its low car tax, of course, has a sporty design and is fun to drive across the UK countryside and cities alike. 

The Yaris Hybrid is a prime example of a car that you don’t need to pay a fortune for to reduce your road tax. This latest model of the popular Toyota looks sporty, is great to drive and offers fuel economy that’s pretty much as good as you get. While it may not be the quietest of cars to drive when you accelerate and it doesn’t come with the plushest cabin materials on the market, it does give you plenty of equipment as standard plus an efficient hybrid engine. 

While the emissions are a bit too high to get free tax for the first year, it is low in comparison to other vehicles on the market. The CO2 figure of just 79g/km delivers real running cost benefits for drivers. 

On the road, it is smooth and fun to drive. Like so many Toyota models before it, the Yaris Hybrid performs beautifully in the county and cities alike. Yaris Hybrid owners can expect fuel economy of more than 55mpg with a normal driving style and its CVT automatic gearbox and electric motor provide smooth and quiet acceleration up to 80% of the time.

Audi A3

This list wouldn’t be complete without including an Audi. The Audi A3, one of the UK’s favourites, is a striking-looking hatchback that comes with a classy interior and plenty of modern technology on board. 

The Audi A3 is just one vehicle that uses the Volkswagen Group’s range of turbocharged petrol engines. If you opt for the 1.4-litre plug-in hybrid, it’ll be cheap to run as well as sound powerful as you accelerate. Along with this powerful yet efficient engine, you can guarantee that it is filled with lots of quality materials that make it as luxurious as it is cost-efficient. 

This sporty A3 has a sleek Lamborghini-inspired design as well as super-advanced driver-assisted technology, and a luxury interior. Step inside the A3 and you will find a beautifully compiled interior with a standard Virtual Cockpit instrument display replacing the original analogue dials and every A3 coming with a 10.1-inch infotainment screen. 

Jaguar E-Pace

Jaguar, not exactly a brand that is seen as the most affordable to the average driver. But the 2022 Jaguar E-Pace is Jag’s pretty successful attempt to seduce younger buyers seeking a small crossover with a big luxury label.

Jaguar is a brand that seems to have it all. Powerful engines, plush interiors, futuristic technology and now they’re even fuel-efficient and have low road tax? Is there anything they cannot do? Even the most basic E-Pace package comes with 17in alloy wheels, rain-sensing windscreen wipers, dual-zone climate control and a driver assist technology.

In the impressive E-Pace lineup, you will find the electric I-Pace and the larger F-Pace. While this might be the smaller of the bunch, it doesn’t mean it’s tiny. The small but mighty E-Pace is roughly the same size as competitors such as the Audi Q3 and BMW X1.

Leasing a Car with Low Road Tax

As you can see, there are some incredible cars that offer a smooth driving experience along with low tax benefits. If you are looking for a great lease deal on your next car then you have come to the right place. Simply select your make and model then watch our list of trusted dealers deliver their best deals.