Drivers buying used cars which will avoid daily fees from the planned expansion of London’s ultra-low emission zone (Ulez) are being hit by a “price penalty”, according to new analysis.
Online vehicle marketplace Auto Trader said some motorists are being charged over £3,000 more for Ulez-compliant vehicles compared with identical models only a year older which do not meet the scheme’s emissions standards.
The company, which is used by about four out of five UK vehicle retailers, said its research is “hard evidence” the used car market is being distorted by the Ulez plan.
Drivers are having to pay a price penalty to follow the rules in London— Ian Plummer, Auto Trader
To avoid the £12.50 daily fee for driving in the Ulez area, diesel cars must generally have been first registered after September 2015, while most petrol cars registered after 2005 are also exempt.
Auto Trader said the biggest price gap across the UK involves a used Volkswagen Golf 2016 model being sold for £3,601 more than a 2015 non-compliant version.
That is an increase of 28% from £9,445 to £13,046.
Similarly, a used Ford Focus from 2016 costs £2,828 more than a 2015 model.
This represents a 27% rise, from £7,508 to £10,336.
Other used 2016 models with an apparent premium for Ulez compliance include a Land Rover Epoque (£2,594 more expensive), Nissan Qashqai (£2,220 more expensive) and BMW 3 Series (£1,645 more expensive).
Auto Trader commercial director Ian Plummer said: “This is hard evidence of the distortions in the market caused by the Ulez extension.
“While the overall used car market is in good health nationally, drivers are having to pay a price penalty to follow the rules in London.
“This doesn’t need to be a case of pocket over planet, it is possible to achieve both – but it’s vital we get the balance right between the carrots and the sticks or we’ll lose people along the way.”
Auto Trader said a number of cheaper petrol options which comply with the rules are available in London, such as a 2007 Vauxhall Astra costing £2,172 and a 2006 Ford Focus priced at £2,250.
Mayor of London Sadiq Khan plans to expand the zone to cover the whole of the capital from August 29 to boost air quality.
Transport for London estimates that more than 200,000 drivers of non-compliant vehicles will be affected.
