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4x4 values unaffected by tax hike

20 July 2007

Higher taxes on 4x4s haven't harmed their resale values, according to research by British Car Auctions (BCA).

This year, road tax was raised from £210 to £300 a year for VED band G cars (cars registered as new after March 23 2006 and which emit 226g/km of carbon dioxide or more). The charge will increase to £400 in the tax year 2008/2009.

However, continuing strong sales have kept used prices high, suggesting that raising road tax has done little to put buyers off more polluting cars.

'While the tax rise sounded substantial, it is a minor factor in the overall value of most premium 4x4 models,' said Tony Gannon, a BCA spokesman.

'Price movements in the sector are very much in line with prevailing market conditions, and average values are actually ahead year-on-year.

'The reality is that the used market for 4x4s is generally far less fashion-driven than the new sector.

'If you need the pulling power or sure-footedness of a proper off-roader, then you have to invest in a Land Rover, Landcruiser or Shogun according to your budget.'

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