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Road tax
£245. Ugh. It hurts every time.

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A seven-year-old BMW 530d. An estate car with a 3-litre diesel engine; not worth much now, but well-looked after it will have years of use ahead.

We are currently doing around 4,000 miles per year. I can’t see it making any sense to scrap a working car in order to upgrade to a newer, more efficient model.

I don’t like the taxation system penalising me for being frugal.

But it is a large car. I have a 11-year-old (as of March 2011) VW Lupo, which is older than your car, but it's smaller in terms of overall size and engine size as well. It gets good mileage, holds more than many people think and accelerates pretty quickly for a one-litre engine. She also performs quite well in snow, ice and potholes. I like her. :)

I can't afford to replace her yet with anything newer, so I guess I'm fortunate that the tax rate is relatively low for me.

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