New figures show a sharp rise in the scrapping of older cars as owners face annual road tax bills approaching £800 from April 2026. The Vehicle Excise Duty (VED) increases are hitting vehicles more than 20 years old but not yet eligible for classic car tax exemption at 40 years, leaving many owners with charges equivalent to a quarter or even half of their car’s value.
Data from car sales and purchase company Car.co.uk reveals that certain models from the early 2000s are now being sent to scrapyards in growing numbers. Cars emitting over 225g/km of CO2 are particularly affected, with the 226-255g/km band rising from £735 to £760, and the over-255g/km band expected to jump from £750 to £790. For vehicles often worth under £1,500, these charges make keeping them on the road financially unviable.
The Land Rover Freelander saw scrappage increase by 550% between 2024 and 2025, while comparing Q4 2025 with Q1 2026 shows scrap quotes for the VW Golf up 323% and the Freelander up 233%. Models such as the Ford Galaxy, Vauxhall Zafira and Volkswagen Golf R32 are among those affected, according to Car.co.uk’s internal data.
William Fletcher MBE, CEO of Car.co.uk, said: “Many of these cars, from family staples like the Ford Galaxy and Vauxhall Zafira to sportier models like the Volkswagen Golf R32, are now worth less than their annual tax bill. For many households that require affordable and family-sized cars like the Galaxy, April’s road tax changes present a massive problem.” He added that scrappage is expected to increase further in Q2 and Q3 as more owners receive their new tax bills.
However, experts note that scrapping an older car may not be environmentally beneficial. Producing a medium-sized new car can generate more than 17 tonnes of CO2, and extending the life of an existing vehicle significantly reduces its lifetime emissions per mile. As Mike Berners-Lee and Duncan Clark wrote in The Guardian, it generally makes sense to keep a reliable old car rather than replace it.
