Drivers of these vehicles hit with £1,732 rise due to 2025 car tax hike

Buying a new van will cost an average of £1,732 more due to car tax updates, according to analysis from Go Compare. Earlier this year, first-year Vehicle Excise Duty (VED) rates were increased, adding hundreds to bills.

Prices are calculated based on emissions, and van owners are among those affected, with most running on petrol and diesel fuel. Previous estimates from Go Compare suggested that van drivers will pay an additional £15.5 million over the first six months of the new tax year. This would mean road users would pay around £1,732 extra on Vehicle Excise Duty (VED) from April 2025.

Earlier this year, Tom said: “The increased VED rates will result in a big hit if you buy a brand-new van later this year, but there are things you can do to absorb the blow.

“The tax rates are based on CO2 emissions, so if you’re able to, this is a good time to switch to a van using cleaner fuels in the cheaper tax bands.”

Emissions from diesel vans often place them in the top bands for VED and owners of these vehicles are most affected again.

As a result, Go Compare warns owners could see a sharp average increase of £1,807 per vehicle in the first half of the 2025/26 financial year.

The study finds that an extra £1.2 million will come from new petrol van purchases, equating to an average of £1,354 more per petrol van.

Under the changes, buyers who opt for a hybrid van will only have to pay an extra £252 in tax to use the roads.

These bills would be an eye-watering £1,500 less than diesel van drivers but upfront costs for hybrid models are likely to be a lot higher.

Meanwhile, those who choose an electric van will spend just £10 more per year to use the roads, a major boost for those who can afford one.

Experts at Go Compare stressed that second-hand hybrid or electric vans could be a simple solution with lower prices and all the tax benefits.

Tom added: “If you can’t buy a suitable hybrid or electric van, you could go for a ‘nearly new’ one instead.

“This lets you enjoy a vehicle that’s pretty much as good as new without breaking the bank, and means you can dodge the increased tax.”