Direct Line: New car tax has the intended effect

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Direct Line: New car tax has the intended effect

New research from Direct Line has revealed that Chancellor Alistair Darling's decision to charge high-emission vehicles a £2,000 levy has had a "significant" effect on the cars people choose to drive.

It found that around 50 per cent of those considering buying a new car would be much less likely to opt for a high-emission vehicle, such as a 4x4 or people carrier, while a further 14 per cent said they would be a little less likely to go for a gas-guzzler.

That makes a change from last month, before the measure was introduced, when 16 per cent of drivers reported they were planning to buy a high-emission vehicle this year.

Motorists aged 55 and over were the most likely to be put off by the tax, while men were more likely to let the levy affect their car-buying decisions than women.

Jennifer Culley, a spokesperson for Direct Line, said: "By hitting people's wallets, Darling has succeeded in making people think twice before they head for the forecourt."

Last week, Tesco called on the chancellor to go further and abolish the insurance premium tax for eco-friendly cars to make them more economically viable.
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