New tax to affect car finance

A new tax is on the way in the next six years that will affect the amount of car finance consumers are able to obtain. The green tax being proposed by the Government would result in further fuel increases, as well as thousands of pounds being added to the cost of vehicles. This could in turn impact drivers abilities to secure adequate car finance and manage repayments. Petrol companies could be subject to an allocation of how much carbon can be in their fuels, which could have two possible outcomes: either the companies would have to switch to petrol with lower carbon emissions, or they would simply pass the carbon costs onto motorists. The Department of Transport estimates the tax could come into force within six years. Petrol Retailers Association spokesperson Ray Holloway said: "Petrol prices could soar. It could be anything from a few pence to an unlimited sum. If the government falls short of their environmental targets they simply give another turn of the screw. And it is the industry that will bear the cost of administering this." At the time of writing, a litre of petrol cost approximately 97p, with 70p out of every pound paid out in tax at the pumps.

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