VED Changes 2025: How Motor Finance and Leasing Will Be Impacted
2025-03-31
Yahoo Finance
The 2025 VED changes will significantly impact motor finance and leasing, with petrol and diesel cars emitting over 255g/km CO2 facing a first-year tax hike from £2,745 to £5,490. Meanwhile, new electric vehicles (EVs) will no longer be exempt, incurring a £10 'showroom tax' in their first year, and those priced above £40,000 will attract additional taxes. These changes will affect car buyers, especially those considering luxury EVs, and may influence the demand for eco-friendly vehicles and alternative fuel cars. Motor finance and leasing companies must adapt to these changes to remain competitive in the market, considering the rising costs of vehicle excise duty and the growing popularity of electric vehicles.
