From 1 April 2025, Vehicle Excise Duty (VED) rates are changing – and for many drivers in Lancashire, that means higher costs. Whether you drive petrol, diesel, hybrid, or electric, these changes could impact you.
But here’s the thing – with the right approach, you can stay ahead of the tax rise and even save money. At Bowker BMW, we’re here to help you make the best choice before the new rates arrive.
WHAT'S CHANGING?
The big news is that electric vehicles (EVs) will no longer be tax-free. If you own a petrol or diesel car, you’ll likely see an increase too – especially if your car has high CO2 emissions. Here’s what you need to know:
- EVs will start paying VED from April 2025 – £10 in the first year, then £195 annually.
- Older, high-emission petrol and diesel cars will face bigger tax bills.
If you drive a company car, the Benefit-in-Kind (BiK) tax rules are also shifting. BiK for EVs is rising from 2% to 3% in April – and will continue to rise to 9% in 2029/30. This rate is flat for all EVs.
So, what can you do about it? Here are some smart moves to avoid paying more than you need to.
1. THINKING ABOUT AN EV? NOW'S THE TIME TO BUY.
Right now, EVs are still exempt from VED – but that ends in April 2025. If you’ve been considering making the switch, this could be your last chance to buy tax-free and save money in the long run.
Why act now?
- Buy before April 2025, and you’ll enjoy a tax-free period before the charges start.
- Lower running costs still make EVs a great choice.
How can Bowker BMW help?
We have a range of EVs in stock, available for immediate delivery.
Our electric cars combine modern driving with efficient technologies. From elegant saloons to high-performance SUVs – find the car that suits your lifestyle. Find out more about modern charging technologies within a convenient charging infrastructure. Make the most of purely electric range that will get you closer to your destinations in day-to-day life and on longer trips.
2. UPGRADE YOUR OLD CAR AND BEAT THE TAX INCREASE.
Own an older petrol or diesel car? VED rates are going up, especially for high-emission models.
Why upgrade now?
- Hybrid and low-emission petrol/diesel cars will cost less in tax – and less to run.
- A new car might actually be cheaper month-to-month than keeping your current one.
- Selling it back to the experts will make parting stress-free – giving you the confidence in our years of experience.
How can Bowker BMW help?
- Our valuations are quick, accurate, and reflect the condition of your car at the time of inspection.
- No fees.
- We check our prices daily against all the popular online valuation tools.
- We will ensure you receive the best price possible for your car.
3. COMPANY CAR? GO LOW-EMISSION AND SAVE ON TAX.
If you drive a company car, the Benefit-in-Kind (BiK) tax rules are also shifting. Low-emission vehicles, including EVs and plug-in hybrids, will still benefit from lower tax rates.
Why this matters:
- Switching to a low-emission company car could save you thousands in tax.
- EV salary sacrifice schemes can make leasing an electric car cheaper than a petrol model.
- Your employer may offer incentives for greener choices.
How can Bowker BMW help?
We have a range of EVs and low-emission company cars with compelling finance options for sole traders and businesses with a fleet of up to 50 cars. Why not speak to our team of experts?
4. NOT READY FOR AN EV? GO HYBRID INSTEAD.
We understand switching to an EV can feel like a big step. If you’re not quite ready, a plug-in hybrid could be a smart move.
Why hybrids make sense:
- Lower CO2 emissions = lower VED.
- Better fuel economy means long-term savings.
- Great choice if you’re not ready to rely on charging infrastructure.
How can Bowker BMW help?
We can help you compare running costs, so you can see the savings over time.
5. TAKE ADVANTAGE OF OUR ENHANCED OFFERS.
✔ Enhanced deposit contributions
✔ BMW Service Plans
✔ Order a new BMW Electric between 3 January and 31 March 2025 and receive a complimentary home charger with standard installation, or £500 discount on the cash price of the vehicle from BMW.*
6. GET THE RIGHT ADVICE AND PLAN AHEAD.
With all these changes, it’s important to know exactly how much tax you’ll pay on your next car.
What you can do:
- Check your current VED costs – use the DVLA website or ask us for help.
- Use a tax calculator to compare how much different cars will cost you in tax.
- Visit your local Bowker BMW Centre or contact us online – our team is here to help you make the best decision for your budget.
WHAT'S YOUR NEXT MOVE?
The upcoming tax changes might mean higher costs – but they also present an opportunity to upgrade smartly and save money.
✔ Thinking about an EV? Now’s the best time to buy before tax applies.
✔ Driving an older petrol/diesel car? Trade it in for something more efficient.
✔ Need a company car? Go low-emission to save on tax.
✔ Not sure what to do? Let’s chat – we’ll help you make the right choice.
CONTACT US TODAY!
*Enjoy the benefits of our latest all-electric range, which includes a complimentary home charger with standard installation, or £500 discount on the cash price of the vehicle from BMW.
Home charger or £500 discount for Retail and “BMW for Business” customers who order a new all-electric BMW vehicle between 3 January and 31 March 2025 (subject to availability).
Vehicles must be registered and delivered by 30 June 2025.
Subject to availability. Bowker BMW Preston and Blackburn will be able to advise you on lead times for our all-electric vehicles.
7kW Universal Solo 3S Smart Home Charger will be supplied and installed by Pod Point (BMW is not the supplier of the Home Charger). Typically 90% of customers are eligible for standard installation. Pod Point will charge for any additional work required. The Home Charger warranty and installation is subject to Pod Point’s terms and conditions.
Home Charger and installation can be arranged between the customer and Pod Point. Home Chargers must be installed by 30 June 2025.
Any installation costs beyond the cost of a standard installation of a home charger must be paid to Pod Point directly.
Customers requesting a Tethered Wallbox must pay Pod Point the incremental cost above the standard offer.
In the event that a customer cancels their vehicle order between Home Charger installation and vehicle delivery, the customer will be charged the cost of the Home Charger and installation.
The £500 discount or complimentary home charger with standard installation must be claimed at time of order and cannot be claimed retrospectively.
£500 discount cannot be combined with the complimentary home charger and free standard installation.
