Luxury Cars with Low Road Tax

09th Aug 2022

By Kenny Longdon

Low Tax Luxury

Interestingly, it is possible to buy a luxury or premium car which has a low annual road tax cost.

Lately, there has been a premium in road tax for new cars costing over £40,000, however more recently fully-electric cars costing over this are exempt from this extra tax.

You could argue it defeats the point, as buying a car worth more than £40,000 just to save some money in tax seems a little pointless, but with company car and BIK rates taken into account, it makes more sense.

And if you really want to make your money work harder, there are some used cars that were once well over £40,000 which have low tax rates too.

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The best new cars with low road tax

They say one of the best feelings is 'that new car feeling'. The smell, the feel, the fact you are the first owner; getting a brand new car is great. Not to mention you get a comprehensive manufacturer's warranty and do not have to worry about an MOT for three years.

And although these cars featured in our list may be of a premium price, at least with these picks you will not be paying large amounts in road tax, if any at all.

That said, here at Stratstone we have a number of ways to help you finance your brand new car, to make your new car more affordable and manageable.

The best new cars include:

Porsche Taycan

Porsche Taycan

Annual Tax = £0

Electric cars still have a certain stigma around them, especially with making electric cars appeal to 'petrolheads'. However, the Porsche Taycan may we be the first fully-electric car that could tempt those who prefer internal combustion to the world of zero emission driving.

Not only does the Taycan look incredible, it also has the textbook Porsche high performance. The standard Taycan goes from 0 to 62mph in a fairly quick 5.4 seconds, however if you go for the range-topping 'Turbo S' (which does not actually have a Turbo incidentally) you will get from 0 to 62mph in a hypercar beating 2.8 seconds.

And if you need more practicality, Porsche also offers the Sport Turismo and Cross Turismo which also showcase incredible textbook high performance, but also advanced levels of practicality and refinement.

Learn More about the Porsche Taycan


MINI Electric

MINI Electric

Annual Tax = £0

When the new MINI started production in 2000, it was set to be an icon all over again. The new MINI has always nailed the retro and fun vibe whilst still keeping hold of that iconic look and crisp go-kart like handling.

When the MINI Electric was launched in 2020 it only added to the MINI's appeal. The electric nature suiting the MINI perfectly, and with performance seeing the nippy zero emission hatch going from 0 to 62mph in 7.3 seconds, it is not that far off a regular Cooper S with petrol power.

With charging taking around five hours, or up to 80 percent in under half an hour with a rapid charger, a MINI Electric is a fine way to dart about town without having to pay any road tax.

Search New MINI Offers

BMW 530e xDrive Touring

BMW 530e Touring

Annual Tax = £0

If you want a practical car but do not want an SUV then an estate is a superb alternative, and none more so than the BMW 5 Series.

It offers a capacious interior and boot space - 430 litres of the latter to be precise which can swallow up most family things, and then some.

And with just under 300bhp on tap, this large family estate can go from 0 to 62mph in a brisk 6.1 seconds, meaning it will keep up with modern traffic effortlessly.

There is also up to 18 miles available for pure electric driving, which could come in handy for short trips. Interior quality is excellent as you would expect from a luxury family estate and the updated fully-digital interior means spending time behind the wheel is never a chore.

Search New BMW 5 Series Offers

Mercedes EQC

Mercedes EQC

Annual Tax = £0

The Mercedes EQC is a fine looking fully electric SUV that features nothing to pay in terms of road tax.

Being a Mercedes-Benz, it looks great and the interior is as refined and striking as all new Mercedes-Benz models are, with a fully digital instrument cluster and infotainment screen.

And as for performance, despite the EQC's practical size, it will accelerate from 0 to 62mph in just 5.1 seconds, along with being able to travel up to 255 miles on a full charge.

Talking of charging, it can take as little as 40 minutes and can give up to 80 percent in this time with a rapid charger, whilst using a dedicated wallbox will see an overnight charge be more than sufficient.

Search New Mercedes EQC Offers

Hyundai IONIQ 5

Hyundai IONIQ 5

Annual Tax = £0

Hyundai may not be seen as a luxury vehicle to some, but the IONIQ 5 is certainly an impressive state-of-the-art electric car, which has more than enough premium and luxury features, so we thought it was well worth a mention.

The car can be specified new from our partners over at With a 300 mile range and the reassuring five-year warranty, it poses a great prospect for those who may not be fully onboard with a new electric car, and if that was not enough, you will pay nothing when it comes to road tax too.

And then there is the looks. This is a car that will definitely turn a head or two as it is pretty unique in its retro-like vibes, which flows into the interior too. It is simplistic and minimalist which adds to the premium feel.

If you want an outside of the box premium car, the IONIQ 5 could be worth a look.

Search New Hyundai IONIQ 5 Offers at Evans Halshaw

The best used cars with low road tax

A major plus when buying a used car is that it may well have depreciated a significant amount. And with the used market there are plenty of cars to choose from with some featuring low mileage and many still with their original manufacturer warranties.

All the used cars sold at Stratstone have undergone a thorough inspection to ensure quality, so you can rest assured knowing you are getting a good deal.

That said, here at Stratstone we have a number of ways to help you finance your used car, to make your new car more affordable and manageable.

The best used cars include:

BMW i8

BMW i8

Annual Tax = £0*

Despite still looking very much like a car from the future, the BMW i8 has been on sale since 2014. It looks very much like a bedroom wall supercar thanks to its trick butterfly doors, futuristic styling and head-turning supercar looks.

Despite its somewhat supercar presence, the engine is 1.5-litre unit usually found in the MINI. But with electric technology added to proceedings, the i8 packs more poke than any 1.5-litre MINI could, with 0 to 62mph happening in just 4.2 seconds.

There is a slight catch if you do not want to pay any road tax though, as only cars registered from 2014 to 31st March 2017 will be eligible.

But with this futuristic 'supercar' now retailing for half the price of the original selling price, the zero road tax is the cherry on top of this fantastic used deal.

Search Used BMW i8 Offers

Jaguar XE

Jaguar XE

Annual Tax = £0 to 30*

Like the BMW i8 mentioned previous, if you can find a used Jaguar XE registered before 31st March 2017, then an inexpensive up to £30 annual road tax is all you will have to pay, when choosing select models. Not bad for a luxurious, refined Jaguar.

It will also have to be the 2.0-litre Portfolio, R Sport, Prestige or SE which are all diesel. These range from zero to £30 depending on specification, so it is worth looking out for if you want a used Jaguar XE with low road tax.

For this era of XE, you will still have an analogue instrument cluster and an older infotainment set-up, but it still feels every bit as luxurious as you would expect a Jaguar to be. The XE is a looker too, with some specifications offering upgraded wheels, coloured leather and sharper styling.

Search Used Jaguar XE Offers

Volvo XC90

Volvo XC90

Annual Tax = £0

Volvo are renowned for their safety, and their boxy estates are pretty legendary too. However, in recent times it is their SUVs that are impressing in all the right areas. Their cars are perhaps some of the most stylish yet seemingly understated too, which is a strong appeal to certain buyers.

The XC90 is the flagship Volvo family SUV, and it is perhaps an outside the box choice, when considering the plethora of SUVs from many popular German manufacturers out there.

Again, to take advantage of zero road tax, you will have to find a the 2.0-litre T8 Hybrid Momentum and make sure it was registered before 31st March 2017. With over 400bhp on tap, this large family SUV does not hang about with 0 to 62mph taking just 5.6 seconds.

Inside there is masses of space and also the ability to seat seven too.

Search Used Volvo Offers

Tesla Model X

Tesla Model X

Annual Tax = £0

Tesla have gone from strength to strength with their models in recent years. All fully electric, no matter the Tesla you want, you will not have to pay anything in terms of road tax.

Here we have chosen the Model X, because it offers loads of room, sought-after SUV styling and if you opt for the range-topping Plaid models with 'Ludicrous' mode - you will even be able to out accelerate supercars and even some hypercars. This is because this practical SUV can go from 0 to 62mph in an unbelievable 2.6 seconds.

And with Tesla being essentially like a smart phone, updates are available to download, meaning you can essentially make a used Tesla feel new again.

Search Used Tesla Offers

Audi e-Tron

Audi e-Tron

Annual Tax = £0

Like many fully-electric vehicles, the Audi E-Tron is available in a number of different versions, which essentially give more range or performance the further you go up in price.

Power ranges from 308bhp all the way up to 495bhp. For the former, 0 to 62mph happens in a respectable 6.6 seconds - not bad a large and fully electric SUV. However, if you go for the range topper you will go from 0 to 62mph in just 4.4 seconds.

The E-Tron is also easy on the eye, thanks to sleek design which is repeated on the interior too with the striking Audi virtual cockpit, along with the premium and refinement you would expect from the Audi brand.

Search Used Audi Offers

Find your perfect car with Stratstone

Premium and luxury cars tend to feature road tax which can be quite costly, but we hope this blog has shown that in some cases when looking at new or used cars, there is still the potential to pay little or no road tax at all.

No matter what premium or luxury car you are looking for, here at Stratstone we have a comprehensive selection. Browse our new car offers or used car offers, or contact your preferred Stratstone retailer to book a test drive today.