Used van values are predicted to remain stable, despite the forthcoming introduction of the UK’s first ULEZ (Ultra Low Emission Zone) in London, says Cap HPI.
The statement follows the earlier announcement made by the Mayor of London to introduce a new £23m scrappage scheme, to help take the most polluting vans off London streets. The scheme is said to be in preparation for the up-coming ULEZ introduction. 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.
Steve Botfield, senior editor commercial vehicles at Cap HPI said: “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. 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.”
Botfield added 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.
Added Steve Botfield: “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. Many of the large corporates have already made their plans to show their green credentials.
“Looking at next year’s LCV market, Brexit will undoubtedly have a major influence. However, industry sentiment amongst manufacturers who buy their products in Euros indicates price and stock levels will need to change. This combined with any additional duties on top means new vans will not only be harder to come by but also more expensive – all good news for the used van market.”
LCV operators/drivers can check their vehicle Euro Emission Standard here for free: https://www.hpi.co.uk/content/newsroom/the-future-of-diesel/euro-emission-standards-explained/