Reports now suggest that 4x4’s are going to be the biggest losers due to the Government proposals to hit drivers with backdated car tax increases of up to £245 and the continuing rise in the price of fuel. Dealers are refusing to take 4x4’s in part exchange as there is no demand for petrol off roaders.
A typical 4x4 is now costing over £100 to fill up and will become liable for more than £450 a year in vehicle excise duty by 2010 for models that are now two years old. It has been predicted there will be a 12 percent drop in used prices between now and Christmas.
The BMW X5 4.4i V8 SE 5d Auto was priced new in 2005 at £48,087 the used value today is £17,825 and it is set to drop to £15,686 by the end of the year. The Range Rover 4.4ltr V8 petrol was priced new in 2005 at £54,477 the used value today is £19,630 and again by Christmas this will have dropped 12% to £17,247.
The new road tax system which has been based on the amount of polluting carbon dioxide a car emits has been brought in to encourage drivers to switch to greener cars, this could be the death of the ‘Chelsea Tractor’ but owners will lose out financially whether they decide to change or not.