ULEZ scheme won’t impact used LCV values, says Cap HPI

Fears that non-compliant vans will be worthless once the Government introduces its first Ultra Low Emission Zone (ULEZ) in London, could be unfounded, according the Cap HPI.

The zone will affect diesel vans than don’t meet Euro 6 emissions standards and petrol ones that don’t meet Euro 4 or above.

Non-compliant vehicles will have to pay £12.50 per day to enter the zone, on top of the £11.50 congestion charge, fuelling fears that the residual values of these vans will be significantly affected.

It is estimated that approximately 80% of vans currently on the UK’s roads will not comply.

“Figures show that a considerable number of vehicles will not meet the ULEZ target for free entry when the new scheme in introduced in April 2019. 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,” said Steve Botfield, senior editor commercial vehicles at Cap HPI.

“Those that do want to change will most likely need financial assistance. A new £23 million scrappage scheme to help take the most polluting vans off London roads has been announced to help prepare for the ULEZ. The scheme will initially help small businesses in London with fewer than 10 employees to switch to the cleanest vehicles, including electric,” he added.

Botfield believes that it will not be until 2021, when the ULEZ expands to the North and South circular, when it will not only affect the van driver more but also the car owner.

However, by this time there will already have 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 SME’s using LCV’s simply passing on the daily charge incurred to their customers. The real issue will come in 2020 when the other planned cities join the scheme, which will push many SME’s into running Euro 6 diesels.”