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**Taxing decision
I'm thinking of buying a Y-reg (Aug 2001) Mercedes-Benz E320 CDI Estate, but can't find out which VED band it's in, and therefore how much it will cost me in road tax. Can you help?

Richard Guassardo**

Cars registered after March 1, 2001 are taxed on how much CO2 they emit.

This particular Mercedes-Benz E-Class officially pumped out 209 grams of CO2 every kilometre, which means as of April 1 this year you'll be paying 215 for a 12-month tax disc. The duty will rise to 245 in April 2010.

It might be worth looking for a slightly older model (X-reg or earlier), as cars registered before March 1, 2001 are taxed according to engine capacity. Those with an engine larger than 1549cc will pay 190 a year from April rising to 205 in 2010.

A pre-March 2001 E-Class would save you 65 in car tax during the first couple of years of ownership, and you'll probably pay a bit less to buy the car in the first place.