Best road-tax exempt cars
Road tax is becoming increasingly expensive, and many cars that were previously considered clean are now being hit with big bills. Manufacturers are therefore putting serious consideration into CO2 emissions, consistently striving to reduce the environmental impact of their cars.
But if you’re in the market for a tax-busting car, you needn’t find yourself restricted to spartan superminis with manual windows, steel wheels and a gruff diesel engine. Current Vehicle Excise Duty (VED) banding means anything that emits less than 100g/km of CO2 qualifies for free road tax. BMW, Audi and even Mercedes now build cars that escape the tax man, while Toyota offers a seven-seater MPV exempt from the London Congestion Charge.
So if you’re in the market for a tax-free new car, look no further than our comprehensive top 10.
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1
BMW 1 Series hatchback
£17,630 - £31,085
The BMW 1 Series is the best handling family hatchback on sale in the UK. Although it loses out to its rivals in terms of practicality, it’s a relaxing motorway cruiser and great fun on a twisty back road. Even the super-frugal 116d EfficientDynamics is responsive yet composed and, given it costs about the same as a similarly equipped Volkswagen Golf BlueMotion, it’s remarkable value, too.
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2
Audi A1 hatchback
£13,965 - £22,805
The Audi A1 was presented with our small luxury car award in 2012, thanks to its sleek looks and upmarket appeal. It’s even more attractive in its 1.6 TDI guise, where emissions dip below 100g/km, qualifying for free road tax. So although it’s expensive to buy, running costs should be minimal, while resale values are typically strong.
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3
Ford Fiesta hatchback
£9,995 - £17,545
Our supermini of the year ticks all the boxes. Not only is it great to drive, it mixes sharp styling with an economical set of engines – the most frugal of which qualify for free road tax. The 1.6 TDCi EcoNetic returns 76mpg and emits only 87g/km of CO2.
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4
Renault Clio hatchback
£10,595 - £15,345
The revised Renault Clio’s bold styling is a big improvement over the old model, while the technology inside rivals that of far more expensive executives saloons. There are loads of personalisation options and the 1.5 dCi Clio will manage almost 80mpg. Make sure you plump for the special Eco2 model for tax-free motoring.
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5
Toyota Prius+ mini MPV
£26,495 - £29,795
The Toyota Prius+ is the only seven-seater on sale in the UK to feature sub-100g/km CO2 emissions. This means it's the only seven-seater that's road tax exempt, thereby winning itself a place in our list. Standard equipment is good, but practicality is exemplary, with a spacious interior and plenty of adjustment in the seating arrangements.
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6
Dacia Sandero hatchback
£5,995 - £9,795
Being part of Renault means that budget brand Dacia can benefit from a wide range of economical petrol and diesel engines. The bargain Sandero can be specified with the brilliant 1.5 dCi engine from the Clio, capable of returning 74mpg. And all this is available from only £8,395.
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7
Volkswagen Golf hatchback
£16,495 - £24,375
Our tax-busting list wouldn’t be complete without a BlueMotion badged VW. The fuel-sipping technology is now available across the range but the standout model is the forthcoming Golf Mk7. Emissions of 85g/km and fuel economy of 88mpg rockets it straight to the top of it’s class when it goes on sale in early 2013.
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8
Skoda Citigo hatchback
£7,630 - £10,640
Auto Express’ Car of the Year 2012 is only available with a 1.0-litre engine, but that doesn’t limit its appeal. Models labelled with a GreenTech badge all emit less than 100g/km of CO2 while costing less than the equivalent VW up! to buy. If you spend a lot of time in town, the Citigo’s lively character and light steering won’t disappoint.
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9
Vauxhall Ampera hatchback
£34,995 - £38,995
Claimed economy and emissions of 235mpg and 27g/km mean living with an Ampera will soon pay dividends when it comes to running costs. The range-extending hybrid runs on electric power alone, switching to the petrol engine only to recharge the batteries. If your daily commute is less than 30 miles, you could theoretically run this car for next to nothing.
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10
Kia Cee'd hatchback
£15,695 - £23,795
It's clear that Kia had premium rivals like Volkswagen in mind when it designed the latest Cee’d. It's much more upmarket than the car it replaces, while economy and emissions are improved across the board. The cleanest is the 1.6 CRDi ISG, which now dips below 100g/km of CO2.

