Drivers risk paying £3,000 ‘premium’ for Ulez-compliant car

Drivers in London wanting to buy a vehicle compliant with the new ultra-low emission zone (Ulez) face a £3,000 premium compared to a non-compliant model from just a year earlier, according to Auto Trader,

On August 29, the Ulez zone, which charges drivers of non-compliant vehicles to drive within defined areas in London, expands significantly, covering the majority of areas within the M25. While five councils had tried to challenge its controversial introduction, it was today (July 28) ruled that it could go ahead as planned.

To not be charged to drive within the Ulez area, cars and vans must meet certain emissions requirements, which are based on the age of a vehicle. For petrol vehicles, they have to be ‘Euro 4’, which has been mandatory since 2006.

However, the rules for diesel cars are tougher, as these have to be ‘Euro 6’, which wasn’t mandatory until September 2015. It means there can be a big difference in price between the price of buying a Euro 5 and a Euro 6 diesel, which can amount to more than £3,000, according to Auto Trader.

The marketplace says that the price for a compliant 2016 Volkswagen Golf is £3,601 higher than a 2015 non-compliant example. That’s a 28 per cent increase, from £9,445 to £13,046.

It’s a similar story on the popular Ford Focus, with a compliant vehicle costing £2,828 more than a non-compliant example from a year earlier. It means the price of a 2016 example is £10,337 – 27 per cent higher than a £7,508 model from 2015.

Elsewhere, the cost difference between a 2015 Nissan Qashqai and a 2016 model was £2,220 (16 per cent higher), while on a Range Rover Evoque, drivers face a steep £2,595 jump (16 per cent) between a compliant and non-compliant example.

Ian Plummer, commercial director of Auto Trader, 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.”