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ULEZ effect on used cars
DASHBOARD USED CAR PRICE CONFUSION AS ULEZ SET TO GROW TO 13 PER CENT OF POPULATION
Older compliant models are poised to rocket in value but some vehicles will become worthless.
Values of used low-emission cars are set to rocket as older models’ residual values collapse following the Mayor of London’s decision to expand the capital’s Ultra Low Emission Zone from August 2023.
Sadiq Khan’s announcement will see a new ULEZ covering the whole of Greater London – home to 8.9m people, or more than 13 per cent of the UK population.
The expansion will affect far more people than the original ULEZ, which only covered inner London areas. It’s a move that will see already strong residual values for low-emission and electric cars continue to rise, while older ULEZcompliant models are also set to rocket in value as cashstrapped motorists try to avoid the £12.50-per-day charge to drive in the capital.
Hillingdon Council leader Ian Edwards said: ‘Hillingdon remains vehemently opposed to these half-baked plans and we will do everything in our power to stop it from going ahead. London cannot be treated with a one-size-fits-all approach when the make-up of inner boroughs is incredibly different to ours.
‘Unlike urban parts of the capital, our residents don’t have the luxury of a frequent, multi-layered transport system. Many have little option other than to use their cars for everyday travel. Imposing the ULEZ charge is not only wrongheaded but is completely unfair and will hit the poorest in our communities hardest.’
Harrow Council leader Paul Osborn said: ‘This is an outrageous announcement. Harrow residents were overwhelmingly against this idea. We will join with other councils across London to make sure our residents’ wishes are listened to and acted upon.’
Council leaders from Croydon and Bexley are also opposed to the scheme, which will see around a quarter of a million non-compliant cars currently registered in Greater London forced off the road or be subject to a £12.50 daily ‘congestion charge’.
Ged Kitchen, a joiner from Tottenham, told us: ‘Not only will this make life even more expensive for those of us who are struggling to pay our electricity bills, mortgages and increased food prices, but the alternatives aren’t realistic for most people. And now my old van, which was an asset worth maybe two or three grand, is about to be rendered worthless. I can’t even sell it to raise funds.’
Anti-ULEZ campaigner Jude Currie – who has bought and rehomed several older cars threatened by the original ULEZ – said: ‘London is full of people who only drive out of necessity, preferring to use the city’s public transport infrastructure to get around on a day-to-day basis, so there are loads of older, low-mileage cars around that only get used occasionally, either to leave the city or just do weekly shopping trips. You can’t tell me that their environmental impact is really that big. Most people I’ve bought non-compliant cars from haven’t ever wanted to give them up. It’s a really unfair scheme that benefits nobody.’
Meanwhile, Khan has said a scrappage scheme will be introduced to try to persuade Londoners to buy newer vehicles, although the introduction of the expanded ULEZ is sooner than the expected delivery time of several new EVs, many of which are still delayed by the semiconductor crisis, with lead times of more than 12 months to delivery.
This in turn will push values of used EVs even higher. Hugo Griffiths, editor of car comparison site Carwow, said: ‘It is almost certain that non-ULEZ-compliant cars in the south of England will be hit with significant devaluation, while demand for cars that do meet the standards will soar, with prices for these likely to increase accordingly.’
According to European RV forecasting experts Autovista, residual values for EVs in the UK rose by four per cent in November 2022. Anti-ULEZ campaigner Jude Currie
Expanded ULEZ area
Cllr Ian Edwards
Hillingdon Council leader
