Running costs are a major factor when buying a car in the UK, and road tax is one of the easiest expenses to reduce. Choosing a used car with low road tax can save hundreds of pounds a year while still providing reliability and practicality.
Some of the best used cars with low road tax are covered in this guide, with an emphasis on less well-known models that are still affordable, dependable, and perfect for commuting or city driving. To help you make the best decision, there is a FAQ section and expert insight.
Why Road Tax Matters
Road tax (Vehicle Excise Duty or VED) in the UK is based on CO₂ emissions and engine size. Cars with lower emissions usually fall into cheaper tax bands. When combined with insurance, fuel, and maintenance, road tax can make a big difference to the total cost of ownership.
Top Used Cars with Low Road Tax
1. Suzuki Celerio
The Suzuki Celerio is a compact city car with tiny engines (1.0L petrol) and very low CO₂ emissions, making it extremely cheap to tax. It’s practical, reliable, and ideal for urban driving.
Why it’s ideal: Ultra-low emissions, compact, easy to park
2. Toyota Aygo
The Toyota Aygo is a small hatchback designed for city commuters. Its small petrol engine keeps road tax low, and it’s surprisingly practical inside for its size.
Why it’s ideal: Reliable, low emissions, low running costs
3. Dacia Sandero
The Dacia Sandero has a low-emission petrol engine in recent used models. It’s budget-friendly to buy, cheap to run, and surprisingly practical for a small family car.
Why it’s ideal: Low emissions, affordable, simple and reliable
4. Kia Picanto
The Kia Picanto small petrol engines are extremely tax-friendly. Modern used Picantos are reliable, have low insurance costs, and very economical to run.
Why it’s ideal: Low emissions, reliable, economical
5. Suzuki Swift (1.2L Petrol)
The Suzuki Swift offers a sporty feel while keeping road tax and running costs low thanks to its efficient 1.2L engine.
Why it’s ideal: Low emissions, fun to drive, reliable
6. Skoda Fabia (1.2 TSI Petrol)
The Skoda Fabia combines practicality and reliability. Small petrol engines fall into low tax bands, making it a sensible alternative to more common hatchbacks.
Why it’s ideal: Low emissions, practical interior, reliable engine
Tips for Buying a Used Low Road Tax Car
- Check the car’s VED band and CO₂ emissions before buying.
- Small engines or hybrid models usually have the lowest tax.
- Compare fuel economy and insurance costs for total affordability.
- Look for cars with a full service history for reliability.
- Consider city cars for low tax if mostly used in urban areas.
Expert Insight
“Many drivers overlook smaller, less popular models when looking for low road tax cars. Vehicles like the Suzuki Celerio or Dacia Sandero can save hundreds each year while offering surprising reliability. Always check emissions and service history before buying.” – James Thornton, Automotive Cost Specialist
Frequently Asked Questions (FAQ)
Q: How is road tax calculated in the UK?
A: It depends on CO₂ emissions for cars registered after 2001 and engine size for older cars. Diesel cars may incur extra charges based on emissions.
Q: Are small cars always cheaper to tax?
A: Generally, yes. Smaller engines and low-emission vehicles usually fall into the lowest tax bands.
Q: Do hybrids have low road tax?
A: Yes. Many hybrids are in the lowest tax bands due to minimal CO₂ emissions.
Q: Is road tax the same for all petrol cars?
A: No. Tax varies depending on engine size and CO₂ emissions. A 1.0L petrol car may pay significantly less than a 1.4L engine.
Q: Can I combine low road tax with low insurance?
A: Absolutely. Choosing a small-engine, low-emission vehicle often results in both lower tax and cheaper insurance premiums.
Final Thoughts
Buying a used car with low road tax doesn’t have to mean compromising on space, reliability, or style. Alternatives like the Suzuki Celerio, Toyota Aygo, Dacia Sandero, Kia Picanto, Suzuki Swift, and Skoda Fabia offer low running costs, low emissions, and practical features.
By focusing on emissions, engine size, and reliability, you can save money every year while still driving a dependable vehicle.
