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

author: FutureCar Staff    

Used car dealers in London are facing challenges after the extension of the Ultra Low Emission Zone (Ulez). The Ulez now includes London's outer boroughs, resulting in motorists throughout the entire capital facing a daily charge of £12.50 if their vehicles do not comply with emissions standards. The implementation of these new rules follows a failed legal challenge in the High Court led by five Tory councils.

Car dealers in London are already feeling the impact of these measures. Independent retailers report that non-compliant vehicles have seen a significant drop in value and are now primarily being sold to buyers from outside London. However, some dealers are experiencing a surge in demand and an increase in the value of Ulez-compliant vehicles.

McCarthy Cars in Croydon, which falls within the Ultra Low Emission Zone, is one of the dealers affected by the changes. Director Jim McCarthy expressed frustration with diesel stock, stating that it has become difficult to sell. He mentioned that part-exchanges, especially diesel vehicles, are not being bought by anyone in London, leading to a backlog of inventory. McCarthy Cars is now redirecting customers to places like WeBuyAnyCar to get rid of non-compliant vehicles.

Another area impacted by the Ulez expansion is Uxbridge, where the Tories won a recent by-election partially due to anger over the regulations. Ashraf Kassam, owner of Kassam Car Sales, noted that petrol cars are increasing in value, resulting in higher profits. He also mentioned that non-compliant cars are now primarily being sold to customers from outside London, and many people are opting to buy new cars to replace their non-compliant ones.

Cottage Car Sales in Hayes has also experienced changes due to the Ulez expansion. A spokesperson for the company stated that they have seen an increase in people trading in their older cars for compliant stock. Part-exchanges are now worth less, while the cost of compliant cars has risen due to high demand.

To help car buyers navigate the new regulations, Auto Trader has conducted a study on the stock available from dealers. They found that there are currently 1,520 compliant cars for sale within a 50-mile radius of central London, costing under £2,000. Additionally, there are 10,553 compliant cars under £5,000 and 65,577 compliant cars overall in the same radius. 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.

Ian Plummer, commercial director at Auto Trader, advised those with non-compliant vehicles to explore their options. He suggested getting a valuation of their current vehicle on sites like Auto Trader and considering the expanded scrappage scheme for cars valued around £2,000. For vehicles worth more, selling privately or to a dealer may be more beneficial. Plummer emphasized that there is a wide range of affordable petrol, diesel, and electric compliant vehicles available, with the cheapest compliant models on Auto Trader starting from under £1,500.

FutureCar Staff