High-performance sports cars often come with high road tax bills. Understanding how CO2 and list price combine to determine VED for performance vehicles helps buyers factor tax into the total cost of ownership.
High CO2 and First-Year VED
Sports cars typically produce high CO2 emissions — the more powerful the engine, the higher the emissions. A twin-turbo V8 emitting 260g/km pays £2,605 first-year VED. Even a modestly powerful 2.0-litre turbo sports car at 180g/km pays £540 first year. The first-year VED for a sports car is often the highest single-year road tax bill most people will ever pay. This cost is built into the on-the-road price by dealers but is worth understanding.
Standard Rate After Year One
From year two onward, sports cars pay the standard annual VED rate of £190 per year — the same as any other petrol or diesel car. The high CO2 of a sports car matters only for the first-year rate. After year one, a Porsche 911 and a Ford Fiesta cost exactly the same in road tax. This is one of the few advantages of owning a high-performance car from a VED perspective: the annual cost is fixed and predictable.
Premium Rate for Expensive Sports Cars
Sports cars over £40,000 list price pay the premium supplement: £410 per year on top of the standard rate, for years two through six. A new Porsche 911 at £100,000 list price costs £600 per year in VED from year two (£190 standard + £410 premium). Over five years, the premium rate adds £2,050 to the total VED cost. For buyers choosing between similar sports cars, the one under £40,000 is cheaper to tax long-term.
Insurance and Tax Combined
Sports car owners face a double running cost challenge: high VED for high-CO2 models in year one, high insurance premiums due to performance ratings, and premium rate if over £40,000. The annual VED of £600 for a premium sports car is just a fraction of the total running cost. Use the car tax calculator at Cartax.online to compare VED across specific sports car models before buying.
Used Sports Cars: Better Value?
A three-year-old used sports car that has passed its first-year period costs just £190 per year in VED — regardless of its original CO2 or performance. The first-year VED has already been paid by the original owner. Used sports cars offer dramatically better VED value than new purchases. Over a five-year ownership, buying a three-year-old sports car versus new saves the first-year VED — potentially £1,000-£2,605 — while getting essentially the same car with depreciated value.