Volkswagen has the creditable distinction of selling the only new car boasting a traditional internal combustion engine which produces carbon dioxide (CO2) emissions below the magic 100g/km mark.

 

The Polo BlueMotion is powered by a 1.4 TDI engine boasting a diesel particulate filter and produces CO2 emissions of only 99g/km. And that means it’s exempt from road tax licence. The Polo BlueMotion 1 is priced at £11,995 and will cover 74.2 miles on a single gallon of fuel.

 

Vehicles constructed before January 1, 1973 are exempt from vehicle excise duty but must still display a “free” tax disc supplied by the DVLA.

You’ll pay between £6,000 and £10,000 for a decent classic car, but maintenance and reliability is going to be questionable.

 

Vehicles run using electricity are exempt from car tax, but not that easy to find.

The G-Wiz automatic electric vehicle will travel 48 miles per charge and manages a top speed of 50mph. It is available from £8,995.

A scooter with an engine less than 150cc will only pay £15 road tax per year which may be worth considering if you travel mainly in a congested city.