2025 Reg New Car Buying Guide
For car buyers, March 1 is an important date, as that is when they can get their shiny new model with the latest registration.
This March it’s ‘25’, a number that will be current until 1 September. More pressure exists to buy a new car this March because from 1 April it will become more expensive. Below, we explain why - plus suggest what to buy and how to protect it.
Why will new cars be more expensive from 1 April?
Starting from that date, the higher road tax on new cars (often called the ‘showroom tax’) will increase. In some cases, it will be introduced for the first time.
What’s happening to petrol and diesel car tax rates?
They are doubling - For example, a petrol car that emits 110g/km of CO2, which currently attracts a charge of £195, will attract a new rate of £390 in its first year. From their second year, petrol and diesel cars will pay the standard rate of £195, an increase of £5.
New, low-emission hybrid cars will also see their rates rise.
Are electric cars affected?
From 1 April, new electric cars will, for the first time, attract first-year road tax of £10. It's not much, but in their second year, they’ll face the same annual road tax charge of £195 as petrol and diesel cars.
Is the ‘expensive car supplement’ changing?
Starting on 1 April, the extra road tax for cars priced over £40,000 will increase from £410 to £425. This tax applies from the vehicle's second year to its sixth year. Including the standard £195 second-year rate, the car’s annual road tax will be £620 in total.
For the first time, electric cars registered from 1 April 2025 which cost more than £40,000 will also attract this supplementary charge.
How can I avoid some of these rises in road taxes and the introduction of them on electric cars?
Buy your new car and have it registered before 1 April. For EVs, from 1 April the second-year charge is being backdated on cars registered between 1 April 2017 and 31 March 2025. Buying your new EV in March before the rule kicks in, means you’ll enjoy one year’s tax-free motoring.
Should I buy a new EV?
EVs are clean, quiet, and powerful. They come with the latest technology. However, starting on April 1, road tax will make them a bit more expensive to own. What’s more, they’re often more expensive to buy, although you should be able to get a large discount.
A number of low-cost EVs will arrive in the next few months. One of them is the Chinese-built Leapmotor T03. However, the cheapest EVs usually have the shortest ranges. If you don’t have a driveway to charge your new EV, you’ll be paying higher rates at public chargers.
What’s best: a petrol, hybrid or diesel?
For many people, a petrol car is a great choice. Although prices have gone up in recent years, there are still some good, affordable new models available. Small one-litre turbo petrol engines can have trouble when fully loaded. Consider a mid-size engine like the VW Golf 1.5 TSI, which is both powerful and economical.
Hybrids are expensive, but a compact model such as the Toyota Corolla 1.8 Hybrid priced from £30,505 can manage up to 64mpg.
Diesel cars are becoming less popular. However, if you need one for towing a heavy boat or caravan, it will serve you well.
What body style should I choose?
Mid-size SUVs like the Kia Sportage and Nissan Qashqai are popular in the UK. They offer good visibility, comfort, and are practica. This is why they often rank in the top 10 new car sales.
Larger models can be hard to park. Smaller ones, like the Ford Puma and Nissan Juke, feel more like big hatchbacks, and can be less intimidating to drive. Speaking of hatchbacks - big sellers including the VW Golf and Vauxhall Corsa are easier to live with, more fun to drive and more economical than SUVs.
Automatic or manual?
Except on small cars, manual gearboxes are being phased out in favour of automatics. All electric cars are automatic. However, petrol and diesel cars offer better fuel economy and easier driving. Beware CVT (constantly variable transmission) automatic gearboxes which can be noisy and feel ‘breathless’.
How do I pay less for my new car?
Check all the new offers online. When you are in the showroom, tell the salesperson that these are just a starting point for negotiation. The cost to change from your old car to the new one is an important factor in the deal, so research the value of your old car, too. The dealer will want to give you as little as possible for it but it’s your most valuable asset, so be firm.
How should I finance it?
With hire purchase you’re financing the entire balance minus the deposit, so monthly payments can be high.
Personal contract purchase (PCP) is a popular choice for many people as you only pay for part of the car’s total price. Manufacturers often help with good deposit offers, low-interest financing, and affordable servicing. However, deposits can still be large and those tempting monthly payments may be based on a low annual mileage, so check excess mileage charges.
Personal leasing is a bit like hiring since you pay a monthly rental. Unlike a PCP, you can’t buy the car at the end of the term. However, the initial rental is typically worth as little as three-monthly payments. Like a PCP, there are early termination and excess mileage and condition penalties.
What should I be aware of at delivery?
Check your new car thoroughly before driving it away. Make sure to pay special attention to paintwork and make sure that all the features work. You have a right to demand your money back within 30 days if the car is faulty. Make notes, keep all correspondence and if necessary, involve the Motor Ombudsman.
How can I protect my new car?
If you're financing your car through a PCP or lease, it's worth considering GAP insurance. This coverage helps bridge the gap between your insurer’s payout and the amount needed to replace your car or settle your outstanding finance if the vehicle is written off or stolen. Motoreasy offers competitive quotes for GAP insurance.
Additionally, to avoid penalties at the end of your PCP or lease term, keep your car in good condition. Getting alloy wheel and cosmetic insurance can keep your car looking good and protect its value.
