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Your new car will be cheaper: approved the registration tax reduction

The Congress of Deputies approves the lowering of the registration tax what, necessarily, will result in a price drop on many new cars. The Draft Law on measures to prevent and fight tax fraud, in which this reform has been incorporated, will be published tomorrow, July 1 in the BOE, and the new registration tax should begin to be applied a day later, from July 2. In any case, it is important to remember that the new registration tax will apply until December 31, 2021. On January 1, 2022, the registration tax will be applied again in the sections established so far, unless a new, permanent reform of the registration tax is approved.

To understand what happened these days we have to go back to September 2018. The entry into force of the WLTP emissions protocol, replacing the NEDC that to date was used to calculate the registration tax, meant an increase in the tax to be paid for good part of the new cars sold in Spain. The Government opted for a moratorium, which allowed the increase to be delayed until 2021. Without a new moratorium, nor a new registration tax, on January 1, 2021, the registration tax began to be applied under the WLTP protocol, making the increase effective. and also the increase in the registration tax.

After the presentation of different amendments on the Draft Law on measures to prevent and fight tax fraud, and the negotiations and votes that have been carried out, following the legislative channels, both in Congress and in the Senate, a revision has been approved that will lower the registration tax and, therefore, lower the price of many new cars (See chronology of the registration tax reform).

Citroën C3 (from € 12,980).

This is how the registration tax remains

Until now, the registration tax applied to the purchase of a new car, and the one that will be applied again from January 1, 2022 if a new reform is not approved, was based on the following sections:

Registration tax Approved CO2 emissions (WLTP) 0% Up to 120 g / km of CO24.75% Between 121 and 159 g / km of CO29.75% Between 160 and 199 g / km of CO214.75% Above 200 g / km of CO2

To reverse the effect that the application of the WLTP has had, as of July 2, and until December 31, 2021, the following sections of the registration tax will begin to apply:

Registration tax Certified CO2 emissions (WLTP) 0% Up to 144 g / km of CO24.75% Between 145 and 191 g / km of CO29.75% Between 192 and 239 g / km of CO214.75% Above 240 g / km of CO2New Car Registration Tax Seat Ibiza 2021SEAT Ibiza (from € 16,210).

Will your new car be cheaper?

The reform of the sections of the registration tax that, we insist, will apply until December 31, 2021, will not affect all new cars equally. There will be vehicles that now do not pay registration tax and, therefore, will continue without paying it with this reform, or that will remain in the same section. But there will also be many cars that will stop paying registration tax, because now they will be exempt, or will see a lower tax passed on.

The cars that will see their tax lowered They will be those that comply with the following CO2 emissions, homologated according to WLTP:

From 121 g / km to 144 g / km: from paying 4.75% to being exempt From 160 g / km to 191 g / km: from paying 9.75% to 4.75% From 200 g / km to 240 g / km: to pay 14.75% to 9.75%

The cars that will not see their tax lowered They will be those that comply with the following CO2 emissions, homologated according to WLTP:

From 0 to 120 g / km: they are exempt and will continue to be exempt from the registration tax From 145 to 159 g / km: they will continue to pay 4.75% From 192 to 199 g / km: they will continue to pay 9.75% Over 240 g / km: they will continue to pay 14.75%New Car Registration Tax Peugeot 2008 2021Peugeot 2008 (from € 19,800).

Will the prices of new cars go down?

As we said, the registration tax reduction will not affect all new cars equally. But It is to be assumed that those vehicles that receive a reduction in the registration tax will see it affected in their price and, therefore, in a few days they will be cheaper. If we are in the process of deciding to buy a new car, our advice cannot be other than to contrast the current prices with those that we will see in the coming weeks. Analyze the market, check the prices of the different products in which you are interested and also of the multiple alternatives that you can find in the dealerships and request quotes, now, and when the registration tax review begins to be applied.

A good starting point is our What car do I buy? Portal, where you can check current car prices, the best deals, and request information or a quote to buy a new car. In our portal you will be able to check the prices and current offers and also compare them with the offers that we will see in the coming days, with the registration tax reduction already applied.

See new car buying guides

Here are some new car buying guides in What car should I buy ?, with updated prices and offers that, in many cases, should be revised down in the coming days, impacting the registration tax reduction:

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