Two tax hikes to hit car finance customers

Car finance customers could see a huge increase in their motoring costs, if a proposed double whammy in road and fuel tax increases goes ahead. Treasury proposals, due to be instated in the Autumn, could mean car finance customers paying hundreds of pounds more each year, after Chancellor Alistair Darling announced there would be a 2p increase on fuel tax costs. Additionally, many motorists will see their road tax increase, with many models due to see an increase of more than double, from £210 to over £430. These tax increases will incur further costs to car finance customers, making it even more essential for them to budget and shop around carefully to make sure theyre getting the best possible deal on their initial purchase. Unsurprisingly, the proposals to increase road and fuel taxes have been met with national outcry and backbench rebellion. The general consensus is that the government must revoke these moves, or lose the faith of motorists and car finance customers everywhere. There is a widespread feeling that these moves to further tax motorists could prove even more disastrous to Gordon Browns premiership than the scrapping of the 10p tax band. Junior Labour MP Rob Marris said: "I shall be urging Alistair Darling to have a rethink. There is still time to have discussions and I hope they will be fruitful."