Best used cars with free car tax

Car tax - which is often known as vehicle excise duty or VED - is a motoring-related cost that many people forget about until it comes to the time that you’re required to pay it. Higher rates of tax accompany the most polluting vehicles, so drivers of these types of cars could be hit with costs of over £500 for a full year of car tax - making getting from A to B in these models quite expensive.

However, there are a number of vehicles which are completely exempt from car tax too. Pick one of these cars that we’re looking at in this article and you’re taking away one of those motoring-associated bills to help drive down the cost of motoring overall. Cars exempt from VED fall into these categories.

• Vehicles made before January 1, 1984
• Zero-emission vehicles (essentially all electric vehicles)
• Cars registered between March 1, 2001 and March 31, 2017 that produce less than 100g/km CO2. Hybrids registered during this time which emit under this threshold are also exempt
• Cars used by someone with a disability. Certain exemptions apply, so check out the government’s official guidance.

The car tax rules are due to change in April 2025, however, with all vehicles mentioned above now qualifying for some rate of tax. For instance, cars registered before April 2017 - and emitting under 100g/km CO2 - will now have to pay £20 a year. Meanwhile, electric vehicles will be liable for road tax with those registered between April 1, 2017 and March 31, 2025 attracting a £165 annual rate. EVs, registered between March 1, 2001 and March 30, 2017 will pay £20 per year.

However, there’s still a decent amount of time to enjoy a used car with zero road tax - so let’s check out some of the best options around today.

Peugeot 107

Peugeot’s nippy little 107 is a fine choice if you want to drive down bills to the minimum. Why? Well, it’s a compact city car with a small and frugal 1.0-litre petrol engine that can return up to 60mpg, meaning that trips to the pump will be few and far between. While it may not be the best choice for space-hungry families, new drivers and urban motorists will love the 107’s handling and peppy performance.

There is a caveat, however. In order to get free car tax, you need to be checking out 107 models registered from late 2012 onwards. These versions were equipped with a new, cleaner engine which allowed them to emit just 99g/km CO2. Used examples start from around £3,250.

Audi A3

Want a car that can do it all? Audi’s A3 could be the ideal vehicle for the job. This third-generation model - built from 2012 onwards - is a fine example of the A3 in its stride as it brings loads of technology as well as a refined and comfortable driving experience.

While you may not think of diesel as the cleanest fuel type, it’s actually the diesel-powered A3 of this generation which is exempt from vehicle tax. Find an example registered before 2017 with a 1.6-litre diesel engine and it just nips in under that 100g/km CO2 threshold, while a claimed consumption figure of 70mpg means it’s impressively efficient. High-mileage examples start from around £2,000.

Nissan Leaf

Nissan’s Leaf has been one of the most popular electric cars of all time and because of this there are plenty to choose from in the used market. It also represents one of the easiest ways to get a car without VED as with its battery-powered setup, the Leaf is completely exempt. First-generation Leafs start from just a few thousand pounds, but if you can stretch to the second-generation model we’d recommend it. Introduced in 2018, this age of Leaf brings more range and a far classier interior than its predecessor.

Examples of this age should be able to manage around 168 miles between trips to the plug while if you’re able to take advantage of low home charging rates it’ll cost very little to run. Expect to pay around £11,000 for a decent example.

BMW i8

Cars which are exempt from VED needn’t be boring, as the BMW i8 proves. It’s a futuristic-looking sports car which combines a super-efficient 1.5-litre engine (originally found in the Mini Cooper) and an electric motor to create a very exciting car to drive. Plus, this plug-in hybrid setup means you can get up to 15 miles of electric-only power while BMW claims an impressive 100mpg overall.

The i8’s low emissions of just 49g/km CO2 mean it comes well within that 100g/km threshold, though you’ll need to buy an example registered before April 2017 in order to qualify. Prices for the i8 have sunk as low as they can, so expect to pay around £30,000 for an early example.

Toyota Yaris Hybrid

If there’s a brand which knows a thing or two about hybrid powertrains, it’s Toyota. The Japanese firm has finessed the technology over the years and it has been put to great work in the Yaris Hybrid. You’ll need to find an example which has been registered before the end of March 2017, but do so and you’ll get a car which emits just 79g/km CO2 and easily qualifies for free VED.

The Yaris feels happiest around the town, though it’s still well refined over those longer trips too. Small dimensions make it an absolute doddle to park, too. Expect to pay around £5,000 for a clean, low-mileage version.

Nissan Qashqai

The true all-rounder, Nissan’s Qashqai has been a go-to for families over many, many years. Despite it being a relatively large, high-riding model, it’s also a car that - in certain trims - qualifies for free car tax. You’ll need to look for a model equipped with the 1.5-litre dCi diesel engine which is accompanied by CO2 emissions of under 100g/km, alongside fuel economy of more than 70mpg combined.

Inside, the Qashqai is practical and spacious with loads of clever cubbies and stowaway points to help keep the cabin as tidy as possible. There are some good deals to be had, too, with low-mileage examples available for around £10,000.

Citroen Grand C4 Picasso

Big, practical MPVs may have fallen out of favour with buyers over recent years, but cars like the Citroen Grand C4 Picasso will still make a lot of sense for all types of drivers. Comfortable and packed with user-friendly features, it’s a car which will take the aches and strains away from even the longest of road trips.

To get a model which qualifies for zero car tax, you’ll need to look out for models equipped with the 90bhp 1.6-litre diesel engine. Pricing is competitive, too, with good examples starting from around £6,495.

Jaguar XE

If you’re doing long distances then there’s nothing quite like a comfortable executive saloon and the XE is one of the best out there. Packed with loads of classic Jaguar styling touches - including rear lights which mimic those fitted to the F-Type sports car - the XE is dynamic to drive when you want it to be, or comfortable and refined when you’re at a cruise.

Opt for the entry-level 161bhp 2.0-litre diesel engine and you’ll get free car tax, too, alongside a claimed fuel consumption figure of 75mpg - which is impressive for this type of car. Prices for the XE have crept up in recent years, so you’ll pay around £8,200 for a clean example.

Ford Fiesta

The Fiesta has always been a popular model with the UK’s drivers and now that it has been axed from Ford’s current line-up, your only option is the used market. Fortunately, the Fiesta is a common sight in the second-hand segment, so you’re spoilt for choice when it comes to trims and colours.

If you get a version with a 1.0-litre turbocharged EcoBoost petrol engine with 99bhp, it’ll qualify for zero road tax, too. Ford claims up to 65mpg, too, though with this engine’s high-strung nature expect to get slightly less than these claimed figures. Prices have crept up recently, too, so you’ll pay around £6,995 for a later Fiesta model with low miles.

Renault Zoe

We finish with yet another popular electric vehicle - the Renault Zoe. Small and easy to drive, the Zoe is great around town where its nippy performance makes it a great way of darting in and out of traffic. Because it first went on sale in 2013, there are plenty of examples available on the used market, too.

However, a small battery on early models means a real-world range of around 80 miles, though this is still enough for drivers doing shorter trips. Bear in mind that earlier Zoe models were covered by a battery leasing scheme, which around £50 a month to pay - though it covers the battery for any defects. Used Zoe prices start at just over £6,000.

Prices correct at time of publication [06/2024].