The new VED rates pose a significant risk to trade values, according to Mark Norman, operational development manager at RV expert CAP.

The residual value experts have warned that dealers should take likely VED bands into account to avoid having large numbers of rapidly depreciating cars for sale.

“We believe that VED rates will become as influential on consumer choice as fuel economy and insurance costs,” Norman continued.

CAP argues that cars emitting more than 180g/km will be hardest hit. The proposed £415 annual cost could account for a significant proportion of the cars value.

CO2 figures will now be included in the next issue of CAP’s Black Book.