ULEZ ‘won’t impact used van sales’

Added: 01 January 2019

Used van values are predicted to remain stable, despite the introduction of the UK’s first Ultra Low Emission Zone in London, auto industry data specialists at CAP HPI believe.

The statement follows the announcement that the Mayor of London plans to introduce a new van scrappage scheme, to help take the most polluting vans off London streets in advance of the ULEZ introduction in April 2019.  Although the ULEZ changes apply to all petrol and diesel vehicles, it is estimated that approximately 80% of vans currently on UK roads will not be compliant with the standards required by the new zone.

“Figures show that a considerable number of vehicles will not meet the ULEZ target for free entry when the new scheme is introduced in April 2019,” Steve Botfield, Senior Editor Commercial Vehicles at CAP HPI, said.  “However, LCV dealers won’t be rushing out to stock up on Euro 6 engine vans unless the frequency of trips into Central London makes this financially viable – but with the other things going on politically and economically, it won’t be high on the SME agenda.”

He said that companies wanting to make the change to newer vans will, “most likely need financial assistance”, helped by the likes of the new scrappage scheme.  He believes, however, that it will not be until 2021 when the ULEZ expands to include the North and South Circulars, when it will affect not only van drivers, but car drivers too.  Despite this, there is predicted to have already been a reduction in the numbers eligible to enter areas where charges will apply.

“Once the ULEZ comes into force, I think we’ll see SMEs simply passing on the daily charge incurred to their customers,” Steve Botfield added.  “The real issue will come in 2020 when the other planned cities join the scheme, which will push many SMEs into running Euro 6 diesels.  Many of the large corporates have already made their plans to show their green credentials.”

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