What's the best SUV under £40,000?

Which SUV for under £40,000 has the lowest emissions for the lowest VED upfront cost and annual cost? We are looking for a Hybrid SUV and the shortlist is Hyundai Tucson or Mitsubishi Outlander PHEV. We will be keeping it for the next six years. Can you suggest anything better? We are worried about Mitsubishi pulling out of the UK though and the impact on parts and service availability within this time. Many thanks.

Asked on 17 September 2020 by Lesley Moore

Answered by Andrew Brady
The first year's VED is based on emissions and included in the 'on the road' price (the figure quoted by manufacturers). After this, you'll pay a flat rate of £150 a year. The exceptions are alternative vehicles (such as hybrids), which qualify for a £10/year discount. Electric vehicles are free to tax. Cars with a list of price of more than £40,000 are taxed an extra £325 a year for five years (after the first year). So, it's worth hunting out an SUV with a list price below £40,000, but other than that don't let the cost of VED influence your search too much. There are better alternatives to both the Outlander and the Tucson. We'd recommend a Skoda Karoq or Peugeot 3008. If you need more space, consider a Ford Kuga or Honda CR-V.
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