Vehicle Excise Duty (VED), better known as road tax has been used as a way of encouraging beneficial driver behaviours – smaller engines, lower emissions or paying more for more expensive or powerful cars. With a better understanding of pollution, a free road tax bracket was introduced in March 2001 – though in 2017, it was revised so only electric cars could benefit and in 2025, those cars will no longer be road tax exempt.
Buyers of used cars can still find a road tax exempt vehicle, however, and there’s a surprising number of cars for sale that fall into band A for March 2001 to April 2017 VED rates. Not all of them are small, slow eco-cars either – there’s a surprising variety of brands, shapes and sizes to choose from if you don’t want to pay for you car being parked on the road.
The challenge to be road tax exempt seemed difficult at the time – bring tailpipe CO2 below 100g/km. Manufacturers managed to make low emission cars rather too easily for the treasury’s budgets, and that’s why there are so many cars on the road that don’t pay road tax now. The system changed in 2017 as a result of this shift in buyer habits, leaving only fully electric cars exempt from road tax – and that changes again in April 2025.
Why buy a car with free road tax?
It’s not a big cost in the grand scheme of things, but if you do a low annual mileage and can’t make a SORN for a car that’s not being used for months at a time, VED is just another expense with little reward. For higher mileage drivers, the amount paid through VED is just a percentage of motoring taxes, on top of fuel tax and VAT on parts and servicing.
Which used cars are exempt from road tax?
Cars sold new and first registered in the UK between March 2001 and April 2017 that produce less than 100g/km of CO2 fall into band A for emissions, and that means they are zero-rated for vehicle excise duty. Or, to be less technical, a few models sold between 2001 and 2006, and a remarkable number of vehicles offered in the UK between 2006 and 2017.
Personal imports registered new in the UK may not have type approval or emissions data. They are placed into the pre-March 2001 tax bands.
Low CO2 also means these are usually the most economical cars, with low running costs and great fuel economy. Don’t think you’ll be limited to just the smallest city cars or the very slowest diesels – there’s a fantastic variety of cars on this list. Read on for our pick of the best sub-100g/km cars.
Skoda Octavia Estate (2013-2020)
Opt for the right version of the Octavia Estate – the ultra-eco models badged ‘Greeline’ and you’ll own one of the most truly Swiss Army-like cars on the market – with running costs to shame a pushbike. Skoda claims an amazing 88.3mpg.
The Octavia’s 1.6-litre diesel engine isn’t exactly rapid, but it has plenty of low-down pulling power to make light work of whatever you can load in the utterly cavernous, 640-litre boot. There’s oodles of rear space too, and prices undercut the much smaller Volkswagen Golf. A great buy when new and an even better one now.
Find a used Skoda Octavia Estate for sale here
Suzuki Swift (2010-2017)
The Suzuki Swift in 1.2-litre Dualjet petrol form is a great example of a well-engineered small car that could double up as an all-rounder for most people. Starting with the engine, which was available from 2015 on, it delivered impressive fuel economy and CO2 emissions. But it’s also nippy to drive thanks to 90hp of power, meaning you’ll get from 0-62mph in 11.9 seconds.
Another major attraction is the Suzuki’s rugged build quality, an enviable – and justified – reputation for building strong, reliable cars, and a friendly and well-regarded dealer network. The Dualjet model isn’t the cheapest option in the Swift range – you could go for the diesel if you’re after the maximum possible mpg – but it is easily the best. And free to tax.
Find a used Suzuki Swift for sale here
Citroen Grand C4 Picasso (2014-2018)
This is one of very few seven-seaters that’s free to tax – and for that reason alone it’s well worth considering, especially if you’ve got a big family or simply want a car with lots of space. The Picasso’s avant-garde styling conceals a very comfortable, spacious and practical vehicle.
For free road tax you’ll need the leanest version of the 1.6-litre BlueHDI diesel, which while it’s not exactly speedy is nonetheless smooth and quiet for a diesel, with claimed fuel economy up to 74.3mpg. And the Grand C4 Picasso is best enjoyed at a more sedate pace anyway.
Find a used Citroen C4 Picasso for sale here
Skoda Citigo (2012-2019)
The best-value offering in a trio of near-identical city cars, before 2017 every version of the Skoda Citigo – apart from those with the automatic gearbox – were eligible for free road tax thanks to their 99g/km emissions. With fuel economy of close to 70mpg for most models, they’re cheap to run too.
These city cars broke the mould when they were introduced in 2012 as small cars that didn’t feel small – though with just 60hp they weren’t rapid, they rode and handled with a fluency that’s impressive even a decade on. Add in a spacious interior capable of seating four six-foot adults (at a bit of a squeeze, admittedly) and a high-quality, easy to use dashboard and it’s easy to see why these cars make such good sense even today.
Find a used Skoda Citigo for sale here
Jaguar XE
An amazingly stylish saloon with a plush interior, comfortable leather seats and fantastic driving dynamics. The XE is Jaguar’s rival to the BMW 3 Series but it’s actually even better than that car to drive, with great handling and a comfortable ride on even the largest wheels.
To get hold of a tax-exempt XE you will have to seek out one of the rare manual models, which can be tricky to find. And it’s worth noting that the infotainment offering on pre-facelift cars was a little poor – but upgraded systems can be purchased and might be a worthwhile investment.
Find a used Jaguar XE for sale here
Nissan Qashqai (2014-2021)
One of the UK’s most popular crossover SUVs for good reason – the Qashqai is a dependable and practical form of family transport, comfortable to drive and with a big boot and lots of room in the back seats.
Opt for the 1.5 dCi diesel engine to get that low tax rate and you’ll enjoy a smooth and quiet engine that’s still got plenty of performance for a car of this size.
Find a used Nissan Qashqai for sale here
Ford Focus (2011-2018)
Ford’s award-winning EcoBoost petrol engines were a gamechanger when they first appeared in 2013. These days, a 1.0-litre three-cylinder engine is commonplace in a family-sized car, but back then, this was cutting-edge stuff. As a tax saver, it’s brilliant, with its 99g/km CO2 rating, but fuel consumption can suffer if you drive it enthusiastically.
The 1.0-litre EcoBoost engine develops 100hp and although the 0-62mph time of 12.1 seconds looks relatively slow, it rarely feels underpowered on the road. The only downside is to keep the car tax free, you can only opt for Style trim (above) which is down at the bottom end of the range and is pretty limited in terms of equipment – and there have been one or two EcoBoost issues in service.
Find a used Ford Focus for sale here
Do old cars get free road tax?
Yes. There’s a historic tax class that applies to classic cars over 40 years old. It isn’t applied automatically, owners need to send the documents to the DVLA to change the tax class. If a car has been modified or off the road for a long time, it may need an identity check or inspection – so we would only buy used cars already in this class. You still need to renew it or make a SORN every year.
Of course, if you’re on the cusp of a used car purchase and want to know how much it’ll cost you to tax, you can use our tool here. And you can always use our car valuation tool to see if you’re paying the right price in the first place.
