03 June 2011 by Parkers Team

  • Parkers top ten picks of free-to-tax cars
  • All cars are also congestion charge exempt
  • Eco Volvo V50 and smallest Lexus amongst choices

There was a time that to get a car with zero annual road tax you had to compromise on performance and practicality by opting for some of the earliest hybrid models. However, as engine technology has improved, the list of car that fit in to this category has grown.

You can now pick between practical estates, family hatchbacks and interesting city cars to avoid handing over your hard-earned cash to the DVLA. Not only are these cars clean on the emissions front, they also offer excellent fuel economy.

We’ve rounded up a selection of the cars that qualify for zero road tax – which also means you avoid the London Congestion Charge. See our pick of the tax-dodging cars below or if you want to know much you will have to pay for your car, see which road tax band it falls in to.

1. Volvo V50 1.6D DRIVe SE Lux Start/Stop

 

WHAT IS IT?
The V50 may not be the most practical of estates around but the compact load-lugger offers Swedish good looks as well as a decent 362 litres of loadspace. Like the rest of the range it's extremely comfortable and, while the DRIVe models were impressive before, getting a car of this size down to 99g/km is an even bigger feat.

WHAT YOU NEED TO KNOW:

Price (new) - £21,995

Fuel - Diesel

g/km - 99

MPG - 74

2. Lexus CT200h 1.8 SE-I CVT

 

WHAT IS IT?
Aimed at keeping Toyota owners out of BMW and Audi models, the CT200h is the first compact premium hybrid according to the manufacturer. It might not offer the kind of driving experience available from its German rivals, but for running costs it comes out on top for both private and company car drivers.

WHAT YOU NEED TO KNOW:

Price (new) - £23,485

Fuel - Petrol/electric hybrid 

g/km - 94

MPG - 68

3. Fiat 500 0.9 TwinAir Pop Auto

 

WHAT IS IT? 
Fitted with a peppy two-cylinder engine, the 500 TwinAir is the lowest emitting petrol engine in the world - for now, anyway. Despite the small engine, the fun factor of the car remains - in fact it is even boosted. There's just the strange engine note to live with, you'll either love it or hate it.

WHAT YOU NEED TO KNOW:

Price (new) - £10,865

Fuel - Petrol 

g/km - 92

MPG - 68

4. Vauxhall Corsa 1.3 CDTi (95bhp) ecoFLEX S

 

WHAT IS IT?
Vauxhall has given the Corsa a major refresh over the last two years, with cleaner and more efficient engines as well as some aesthetic improvements. These updates mean the Corsa is now back on a par with its competitors and once again one of the best small hatchbacks around.

WHAT YOU NEED TO KNOW:

Price (new) - £14,000

Fuel - Diesel 

g/km - 99

MPG - 76

5. SEAT Ibiza Ecomotive 1.2 TDI CR Ecomotive S (AC) 5d

 

WHAT IS IT?
The Ibiza is a bit of a left-field alternative to cars like the Ford Fiesta and Vauxhall Corsa. The efficient Ecomotive model also offers low-cost motoring. Emissions are some of the lowest around at 92g/km, while the average economy is even more impressive at 80mpg.

WHAT YOU NEED TO KNOW:

Price (new) - £15,995

Fuel - Diesel

g/km - 92

MPG - 80

6. Volkswagen Golf 1.6 TDI (105 bhp) BlueMotion 5d

WHAT IS IT?
Still considered the best car in its class, the BlueMotion model takes all the attributes that make the regular Golf great and makes it even more cost-effective. The strong diesel means it's an excellent motorway cruiser while the handling is still good on the twisty bits.

WHAT YOU NEED TO KNOW:

Price (new) - £22,425

Fuel - Diesel

g/km - 99

MPG - 74

7. Ford Fiesta 1.6 TDCi (95bhp) Econetic (AC) 5d

 

 

WHAT IS IT?
The stylish Fiesta is still the best-selling car in the UK and it’s easy to see why. It’s a stylish looking car and performance is excellent with good handling, plus it’s packed with plenty of innovations from the larger Ford models.

WHAT YOU NEED TO KNOW:

Price (new) - £14,495

Fuel - Diesel

g/km - 98

MPG - 76

8. Toyota Prius 1.8 VVTi T4 Hybrid CVT 5d Auto

 

WHAT IS IT? 
This is the third-generation of the Prius and it was a big step forward in making the car a real-world alternative to economic diesel cars for performance as well as running costs. It also comes with plenty of kit and there’s lots of room to boot.

WHAT YOU NEED TO KNOW:

Price (new) - £22,545

Fuel - Petrol/electric hybrid

g/km - 92

MPG - 70

9. Hyundai i10 1.0 Blue 5d

 

WHAT IS IT?
Already one of the most affordable and low-cost cars currently on sale, Hyundai went one step further by adding the Blue model to the range. This means no road tax and slightly improved emissions. Does everything you want to it to and more, while being surprisingly fun to drive.

WHAT YOU NEED TO KNOW:

Price (new) - £9,195

Fuel - Petrol

g/km - 99

MPG - 67

10. Octavia 1.6 TDI CR GreenLine II 5d

 

WHAT IS IT?
One of the best family cars around, the Octavia is spacious, reliable and well built. It’s no slouch in the performance stakes and offers good handling and refinement. Skoda has further improved the Greenline version with this new upgraded eco model.

WHAT YOU NEED TO KNOW:

Price (new) - £17,705

Fuel - Diesel

g/km - 99

MPG - 74

Parker's Top Tip

You can compare both new and used car running costs by using our Cost of Motoring tool. If you're maybe  thinking about changing your car then find out what it's worth by getting a Used Car Valuation, and you can research the replacement cars that might interest you in our New Car Reviews section.