The expansion of London’s new Ultra Low Emissions Zone (ULEZ) is causing major issues for people in the city looking to sell a diesel car. Currently, the zone only applies within the congestion charge area, but it will expand on October 25 to cover everything inside the North and South Circular Roads. As a result, many people will face daily charges of £12.50 for driving a car that is not ULEZ compliant.
24/7 charges.
These charges will apply 24/7. To avoid them, petrol and diesel cars will have to follow Euro 4 and Euro 6 regulations respectively. In practical terms this means petrol cars manufactured after 2005 and diesel cars manufactured after 2015. Exceptions to this rule exist, but are very rare. Because of the difference in regulatory requirements it is predominantly owners of diesel vehicles who will be affected.
Owners of diesel cars are rushing to sell.
The new £12.50 charge is, understandably, causing many owners of non-compliant cars to try and sell them as quickly as possible. But demand for cars that do not meet ULEZ requirements has evaporated. London dealers are reluctant to purchase stock they will have difficulty selling, so prices have fallen through the floor. People trying to sell used diesel cars are finding themselves being offered prices well below what they were expecting, often at least £2,000 below asking price.
This is particularly striking given the current upward trend in used car prices, with the average trade price of a second-hand car rising 14% since April. However, Londoners can still profit from this. The solution is simple: sell outside of London. Motorvate works with a range of dealerships and car buyers across the country, meaning they have access to customers who will be completely unaffected by the new ULEZ rules. This means they can achieve much higher prices than London based dealers will be able to offer.