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

author: FutureCar Staff    

Used car dealers in London are facing challenges after the extension of the controversial Ultra Low Emission Zone (Ulez). The Ulez now includes London's outer boroughs, meaning that motorists throughout the entire capital are subject to a daily charge of £12.50 if their vehicles do not comply with 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 the Ulez extension. Independent retailers have reported a significant 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 are experiencing a surge in demand and an increase in the value of Ulez-compliant vehicles.

McCarthy Cars in Croydon is one of the dealerships affected by the changes. Director Jim McCarthy expressed frustration with non-Ulez diesel stock, stating that it has become difficult to sell within London. McCarthy Cars is redirecting customers to places like WeBuyAnyCar to get rid of non-compliant vehicles. The dealership prices its cars based on market trends and information from sources like Cap HPI and Auto Trader, with most of its stock being Ulez-compliant.

Uxbridge is another area impacted by the Ulez regulations. Ashraf Kassam, owner of Kassam Car Sales, explained that the value of petrol cars has increased, resulting in higher profits. Non-compliant cars are primarily being sold to customers from outside London. Kassam also noted that many people are selling their non-compliant cars and opting for new ones to be able to drive in London.

Cottage Car Sales in Hayes has also seen changes due to the Ulez expansion. According to a spokesperson for the dealership, many customers are trading in their older cars for compliant stock. Part-exchanges are now worth less, while the prices of compliant cars have risen due to increased demand.

Auto Trader has conducted research on the availability of Ulez-compliant cars in response to the changing boundaries. Within a 50-mile radius of central London, there are currently 1,520 compliant cars for sale on the platform, with prices under £2,000. In the same radius, there are 10,553 compliant cars under £5,000 and a total of 65,577 compliant cars. 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.

Auto Trader's commercial director, Ian Plummer, advised those with non-compliant vehicles to consider their options, including getting a valuation on sites like Auto Trader. He suggested that utilizing the expanded scrappage scheme could be beneficial for vehicles worth around £2,000, while selling privately or to a dealer might be more profitable for higher-value cars. 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 at under £1,500.

FutureCar Staff