VED rates are likely to become as influential on consumer used car choice as fuel economy and insurance costs according to the trade values guide firm CAP, which has announced the introduction of CO2 figures and related car tax bands from the May edition of the Black Book guide to current used car values.
CAP believes consumer awareness of the mounting cost of VED will lead to many older cars losing value more rapidly as buyers take into account the cost of taxing the vehicle. And the threat is not limited to large engine vehicles. CAP believes even some 1.6-litre cars will be significantly affected, though Mark Norman, CAPs operational development manager, argues that cars emitting above 180 g/km of CO2 will be hardest hit, with the annual cost of a tax disc representing half or more of the car's trade value in some cases. Norman said, "This risk will increase dramatically when the new VED rates are introduced in 2009."
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