New regulations on car tax

The first of July is an important date to keep in mind for those who are thinking of buying a new car. That date is because of major changes in the rules on vehicle tax. Buying a certain type of model on the “wrong page” this date can entail large unnecessary costs. Instead, buying on the “right side” can have good effects on the wallet. Important to note is that only new cars are included in the system!

The new vehicle tax – what the rules look like

The new vehicle tax - what the rules look like

The idea from politicians is to support a faster transition to a more modern and low-carbon vehicle fleet. The method you have chosen is a bonus malus system. The term is Latin and it is usually used to describe rules that reward desirable behaviors while penalizing the opposite. In this case, it is the people who buy (and drive) cars with low carbon dioxide that receive the rewards of the system.

The Malus part of the system is about increased taxes for new cars that emit a lot of carbon dioxide. In addition, the breakpoints are lowered significantly compared to previously in principle corresponding rules. The following applies from 1 July 2018:
Less than 95 grams CO2 per km = 0 USD / gram
Between 95-140 grams CO2 per km = USD 82 / gram
Over 140 grams CO2 per km = USD 107 / gram.

The increased taxes are valid for three years. When 36 months have passed since registration, the tax becomes USD 22 per gram of CO2 over 111 grams.

The bonus part of the system is that those who buy a new car with low or non-existent CO2 emissions can receive a bonus in cash. In short, the state can go in and sponsor a new car purchase, provided the car’s carbon dioxide emissions are very low. With this “sponsorship” there are good opportunities to bring down the monthly cost of the car. It is also quite likely that many finance companies will produce good deals on car loans during the summer.

The maximum bonus is USD 60,000. A bonus of this magnitude will be obtained for those who buy a car that emits 0 grams of CO2 per kilometer. In practice, it’s all about clean electric cars.

The bonus is progressively diminishing and it is carbon dioxide emissions that are design. The minimum bonus according to the system is USD 10,000. This bonus is given to those who buy a car that emits 60 grams of carbon dioxide per kilometer.

When is the right location to buy a new car?

When is the right location to buy a new car?

If you want to get the maximum benefit from the new rules or reduce the negative effects for tax purposes, you can advantageously do as follows.

If you want to buy a more environmentally friendly car, and are interested in getting a discount on the price, you should wait for the purchase until after the end of June / July. It is at midnight on July 1st that the rules come into force and if the car is registered for example on June 30th you will not receive any bonus at all.

If you care less about the environmental aspect, or just need a car that does not exist, for example, as an electric car, you should instead buy and register it by 30 June at the latest. Your vehicle tax is then calculated according to the old rules.

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