Prices on some cars have increased significantly this year, triggered by the expansion of the ultra low emission zone (ULEZ) across all London boroughs.
One of the UK’s biggest used car marketplaces, Motorway, has examined the sales of cars under five years old, which would comply with the ULEZ rules. In its report, Motorway found that some brands saw an increase in price of more than 30 percent.
The median average price of the electric Kia Soul rose by 45 percent in 2023, compared to the previous year, with the price reaching £20,313. The analysis compared the most recent price evaluation to the 2021–2022 number, which was £14,000.
A price hike was recorded in some petrol vehicles, with the Hyundai Santa Fe growing from £13,983 to £20,313 in the last year.
The Peugeot 208 had a 35 percent price increase and Renault Megane went up by 36 percent compared to 2022 figures.
ULEZ is set to expand to all London boroughs on Aug. 29, which means drivers of vehicles that don’t meet the emissions standards will need to pay a daily charge of £12.50.
The rules apply to cars, motorcycles, vans, and specialist vehicles (up to and including 3.5 tonnes) and minibuses (up to and including 5 tonnes).
“With London’s ULEZ expanding on Aug. 29, car owners across Greater London are deciding if they need to sell. In the lead up to the expansion, car values are changing, with the price of some compliant models going up due to demand,” Alex Buttle, co-founder of Motorway, told The Telegraph.
Earlier this year, Buttle suggested that owing to the cost-of-living crisis and the expansion of ULEZ, “more drivers who use the zone are questioning their current car ownership and driving habits.”
A poll by Motorway revealed in January that 45 percent of respondents said they won’t be able to afford the £12.50 daily charge. Nearly a third (31 percent) of surveyed Londoners shared plans to sell their car in the next six months because they are unable to meet the rising costs.
The ULEZ expansion has caused 67 percent to worry about their personal finances, while 65 percent said they won’t be able to afford a switch to an electric car or a compliant vehicle before the deadline.
Last year, Motorway said it saw a rise in diesel cars being sold, with many more motorists looking to sell owing to the ULEZ expansion.
Perks and Price
To help Londoners with the costs associated with the ULEZ expansion, the Mayor of London Sadiq Khan has introduced a £110 million scrappage scheme.Those eligible could receive a payment to scrap their vehicle, or choose a lower payment plus one or two Transport for London Annual Bus and Tram passes worth more than the payment alone.
London-based sole traders, micro-businesses employing 10 or fewer people, and registered charities will also be able to apply to scrap or retrofit a van or minibus.
The ULEZ expansion has been criticised by politicians and members of the public owing to the costs it carries for London drivers and residents.
“While Sadiq Khan enjoys the perks, Londoners pay the price,” said Susan Hall, who is running for the mayor of London in the upcoming 2024 election.
Conservative MP Steve Baker, opposing the expansion, said on Twitter that workers in his constituency of Wycombe “who commute into the expanded ULEZ at all hours - e.g. doing shifts at Heathrow - can ill afford these charges.”
Khan, however, has insisted that all proceeds from the ULEZ expansion will be invested back into public transport, walking, and cycling schemes.
“It won’t raise any money after a few years—it’s designed to help reduce air pollution, not raise revenue,” the mayor added on Twitter.
