Nearly half a million drivers pay Expensive Car Supplement
More than 426,000 cars have been subject to the government’s Expensive Car Supplement in the past year, according to new analysis from by Marshall Motor Group.
This is a 42% increase on the 299,553 cars that paid the luxury car tax two years ago.
The increase has been attributed to the amount of technology fitted in cars now, which has pushed many beyond the £40,000 barrier in the last two years.
Numbers are expected to rise again next year after electric vehicles became subject to Vehicle Excise Duty in April, with a Freedom of Information request to the DVLA finding that 119,203 EVs costing £40,000 or more were registered between April and September 2025.
Modern cars
Ben Welham, motoring expert at Marshall Motor Group, said: “The FOI data shows just how many modern cars have ended up above the £40,000 threshold. These are vehicles that many drivers wouldn’t consider expensive by today’s standards.”
However, the government’s decision to raise the threshold for electric cars to £50,000 in its Autumn Budget could offer some relief.
Welham continued: “The threshold rise to £50,000 for EVs is a sensible update and reflects how pricing has evolved since 2017. Removing this supplement for mid-range models will make the transition to electric more accessible for drivers who’ve been put off by the tax implications.
“It also recognises that electric vehicle pricing is different. Battery costs mean a mid-spec electric family SUV will naturally sit slightly higher than its petrol equivalent, but that doesn’t make it a luxury purchase.”
