According to Cap Black Book's operational development manager Mark Norman, the new VED bandings will seriously dent some used car values. “The risk will increase dramatically when the new VED rates are introduced in 2009,” he said.

“It is therefore important to begin routinely including tax bands in the trade valuation process today to become fully prepared for new market conditions for older cars next year,” said Norman. Cap's Black Book now includes VED rates and CO2 outputs for the first time. Y-plate cars registered after 2001 will be included as part of the revised taxation rules which will see massive rises in the annual VED of some vehicles.

Although such cars will generally be traded out by franchised dealers, the value of certain models aged over three years old favoured by independent used car trader could also be hit. Norman identified 2.0 litre petrol Rover 75s as possible victims of the tax rises. He suggested that mainstream makes with big fleet sales such as Ford, Vauxhall and French manufacturers with large ranges of diesel models, were prepared for tighter, emissions-based taxation, but makes aimed at private buyers had been slower to adapt. “Cars emitting above 180g/km will be hardest hit, with the annual cost of a tax disc representing half or more of the car's trade value in some cases,” said Norman. “It's a harbinger of things to come,” said Norman, who suggested that some “perfectly serviceable” vehicles could be scrapped because VED rates outstripped their market values. However, he did not think the proposed £300 annual B and D rates would be “deal stoppers” for used cars worth £2,000 plus.