Unfortunately, many of us are in the same position. It's basically the Government's way of 'encouraging' cars that aren't as environmentally friendly as their modern counterparts off the road - even though, as you point out, we're actually doing our bit by recycling. When a car turns 40, it currently gets an exemption from road tax - but that's a long wait for your 940. You could try and get it on a classic insurance policy to keep the cost down - have a look here for more information: classics.honestjohn.co.uk/cheap-classic-car-insura...e. Do you have access to another car? I hate to encourage people to take their cars off the road but if the tax is too much you could just tax it for six months? Alternatively, look at is this way - the value of most modern cars is reducing day after day, whereas the value of your car is actually creeping up.