Class of 1985 – Five Cars Becoming Tax & MOT Exempt in 2025

“Where we’re going, we don’t need roads!” prophesied time-travelling DeLorean driver Doc Brown in the final frames of the 1985 film ‘Back to the Future’. Forty years on, we’re pleased to report that we very much do still need roads, and cars in which to travel them, although we wouldn’t say no to a hoverboard…  1985 was also the year that gave us Live Aid, the first internet domain name, the Lithium-Ion battery and “Money for Nothing” by Dire Straits. But as ever, we’re here for the cars, and 1985 was a belter of a year to be a petrolhead.

The UK operates a rolling forty-year exemption rule for ‘Historic’ vehicles, excusing them from Vehicle Excise Duty (road tax) or undergoing mandatory MOT testing. While the latter, or at least some form of regular vehicle check, is to be recommended, the forty-year rule makes classic ownership a whole lot easier for many. Insurance typically becomes cheaper, and event organisers often exclude non-historic vehicles from priority parking and participation in parades or rallies.

The legislation states that if your vehicle was built or registered before 1 January 1985, you can stop paying your vehicle tax from 1st April 2025. And so long as it hasn’t been “substantially changed”, it also automatically qualifies for MOT exemption. N.B. While there’s no Road Fund Licence to pay, you still need to go through the process of taxing your car. And to declare your car MOT exempt, you’ll need to submit a V112 form.

Car & Classic runs through the 1985 models set to become MOT and tax exempt by January 1st 2026. Unsurprisingly, the myriad benefits of a forty-plus-year-old vehicle also drive up desirability. So, the time is now to buy these five cars from the class of ‘85.

1. Alfa Romeo 75

Alfa’s would-be BMW 3 Series rival celebrates its fortieth birthday this year. Some say it’s “the last proper Alfa”, as the 75 was the final model to be released by the Milanese firm before the Fiat takeover in 1986. Its name commemorated 75 years of the marque, and what a 75 years they had been! Indeed, this capable saloon, with a near-perfect front-rear weight distribution thanks to its transaxle gearbox, proved a fitting tribute to Alfa’s illustrious history. The 75’s ever-so-’80s rectilinear styling has proved divisive at times, but has certainly aged well in our eyes. It was light too, weighing between 1,100 and 1,300 kilograms, dependent on engine and specifications.

A range of lovely engines were offered throughout the 75’s seven-year production run, starting with the venerable Nord twin-cam, evolving to the equally fizzy Twin Spark unit, and also offering the sonorous Busso V6.

2. BMW M5 (E28)

Staying on the fast saloon theme, BMW launched a high-performance version of its Claus Luthe-designed E28 5 Series in February 1985. Thanks to the 3.5-litre DOHC M88 straight-six, Non-Cat European versions made a very healthy 282 horsepower, posting a six-second 0-60 mph time. Here was a luxury German four-door saloon that could outperform the very hottest Italian supercars; a seriously quick car in its day. In fact it’s the fastest car to make this list. All E28 M5s came with a five-speed manual gearbox – a precise and engaging Getrag unit which continues to endear these cars to enthusiastic drivers even forty years on.

The first M5’s styling remains as stunning as ever, a masterclass in understated simplicity that BMW’s present-day design team ought to pay greater attention to.

3. Renault Espace

Undoubtedly the most groundbreaking car to turn forty in 2025, the Renault Espace was the brainchild of British designer Fergus Pollock, and the project was carried through by legendary Greek designer Antonis Volanis as a replacement for the similarly forward-thinking, albeit far less successful, Matra Rancho.

The Espace is often heralded as the very first ‘Multi Purpose Vehicle’ (MPV). It paired an innovative galvanised steel monocoque spaceframe with fibreglass bodywork to create a unique new shape we’ve now come to know as a ‘people carrier’. The cabin boasted a flexible, configurable seating arrangement with two swivelling captain’s chairs in the front and five individual, removable and folding seats in the rear.

Plenty have copied the MPV formula since, but the Renault Espace was first and certainly the most interesting. And now that the Espace has attained ‘Historic’ status, we can see the demand is only going to go up.

4. Toyota MR2 (W10)

The advent of the Toyota MR2 changed the face of the sports car market forever. A criminally underrated car today, the W10 MR2 offered an attainable entrée into the world of mid-engined performance. Certainly, it wasn’t the fastest in its class, but the MR2 more than made up for it with precise (Lotus-honed) handling seldom seen at this price point. As we’ve all come to expect from Toyota, you could trust your MR2 to work, and they’re cheap to run with their modest 1.5/1.6-litre engines.

Now that they’re a bona fide classic thanks to the forty-year rule, early MR2s have never been more tempting.

5. Ferrari 328

Another overlooked classic, this time from the Maranello stable, the Ferrari 328 was a development of the iconic 308 of Magnum PI fame. Its ‘Dino’ V8 grew by 200cc to 3.2-litres, meaning European examples gained an additional forty horsepower. Some say it is the most usable and ‘80s Ferrari, with no expensive engine-out belt changes to contend with; this was the final outing for this engine in this transverse, mid-mounted orientation. Bodies were still largely hand-made by Scaglietti, while Pininfarina’s styling changes were minimal. You’ll note the 328 looks much like its 308 predecessor, with a few subtle tweaks to improve the aerodynamics. The cockpit was more radically redesigned, with updated upholstery, new switchgear and instruments borrowed from the exotic 288 GTO.

You can now enjoy your Ferrari tax-free. Who would have thought it?!