Ulez expansion prompts used car dealers to refuse non-compliant part-exchanges

author: FutureCar Staff    

Used car dealers in London are facing challenges as the Ultra Low Emission Zone (Ulez) has been extended to include the outer boroughs of the city. This means that all motorists in London now have to pay a daily charge of £12.50 if their car does not meet emissions standards. The new rules were implemented after a legal challenge by five Tory councils failed in the High Court.

Car dealers in London are already feeling the impact of these measures. Independent retailers have reported a decrease in the value of non-compliant vehicles, which are now being sold mostly to buyers from outside London. On the other hand, some dealers have seen the value of Ulez-compliant vehicles increase due to high demand.

One dealership affected by the changes is McCarthy Cars in Croydon, which falls within the Ulez. Director Jim McCarthy expressed frustration with diesel stock, calling it "a real pain" to sell. He mentioned that non-Ulez diesel cars are difficult to sell in London, and the dealership is trying to redirect customers to other platforms like WeBuyAnyCar. McCarthy also stated that the dealership's pricing is based on market trends and that the majority of their stock is Ulez-compliant.

Another area impacted by the Ulez expansion is Uxbridge, where the Tories won a recent by-election partly due to anger over the Ulez. Ashraf Kassam, owner of Kassam Car Sales, noted that the value of petrol cars has increased, resulting in higher profits. He mentioned that non-compliant cars are now mostly sold to customers from outside London, and some people are choosing to buy new cars instead of used ones to comply with the Ulez.

Cottage Car Sales in Hayes has also experienced changes due to the Ulez. A spokesperson for the dealership mentioned that many people are trading in their older cars for compliant ones. Part-exchange values have decreased for non-compliant cars, while compliant cars are selling for higher prices due to increased demand.

Auto Trader has conducted research on the availability of Ulez-compliant cars in response to the Ulez expansion. They found that within a 50-mile radius of central London, there are currently 1,520 compliant cars for sale on their platform, with prices under £2,000. In the same radius, there are 10,553 compliant cars under £5,000 and 65,577 compliant cars overall. Nationally, 88.9% of all stock was found to be Ulez-compliant, with the cheapest compliant car being a 2008 Ford Ka Petrol priced at £1,386.

Reacting to these findings, Ian Plummer, commercial director at Auto Trader, advised owners of non-compliant vehicles to evaluate their options. He suggested getting a valuation of their current vehicle and considering the expanded scrappage scheme for cars valued around £2,000. For cars worth more, selling privately or to a dealer might be more beneficial. Plummer emphasized that there are affordable options available, with compliant models on Auto Trader starting from under £1,500.

FutureCar Staff