Londoners with cars that don’t meet Sadiq Khan’s Ultra Low Emission Zone standards are typically more than £3,200 better off selling these older vehicles online than through the Mayor’s Scrapping Scheme.
That’s according to online car marketplace Carwow, which revealed that Londoners who flogged non-compliant engines on their platform in July received an average of £5,200 – more than double the paltry £2,000 offer to scrap an older car using of Khan’s plan.
It says it has recently seen a deluge of capital-based older vehicles listed by motorists looking to replace their cars ahead of the ULEZ expansion later this month, but dealers outside London are desperate for quality samples.
Why you might want to think twice about using the ULEZ scrapping scheme: Carwow says Londoners got an average of £5,212 for their non-compliant cars sold through its platform last month – that’s £3,212 more than they would have got with the mayor’s order
Last week, the beleaguered mayor announced that he would make all Londoners eligible for his demolition scheme ahead of the zone’s expansion on August 29.
With the zone set to cover all 32 boroughs and Khan coming under increasing pressure to delay widening the border, he hopes the £2,000 bid to go for the cost of a replacement vehicle that meets ULEZ requirements will appease angry locals.
But carwow says drivers with cars that don’t meet ULEZ requirements are better off selling their vehicles than taking advantage of the mayor’s subsidy.
Proprietary platform data shows individuals living in the capital who sold non-compliant cars in July earned an average of £5,212 – a massive £3,212 more than what’s being offered by the scrapping scheme.
And it says the number of non-compliant cars uploaded to its “Sell My Car” platform is soaring ahead of the Aug. 29 expansion.
ULEZ’s expansion plan will start on August 29. Sadiq Khan has pumped a further £50m into the demolition programme, pushing costs to an eye-watering £160m
Sadiq Khan has extended the demolition scheme to all Londoners living within the 32 boroughs. Those who qualify can receive up to £2,000 for scrapping their vehicle
The number of advertised vehicles in London rose to one in four (26 percent) of all ads in the months of April through June, up from one in five (21 percent) in the first three months of the year.
He said this shows the “steady rise” of people trying to sell their vehicles amid the launch of the new rules.
This trend is even more apparent when broken down regionally, with three in ten (30 per cent) of all non-compliant used cars being offered for sale by London-based drivers.
Londoners can get a higher price through online sales platforms including carwows and rivals including Motorway.co.uk.
These platforms allow owners to offer their unwanted engines to used car dealers across the country.
This means their cars will be more attractive to businesses outside London that are not affected by ULEZ or similar emission tax zones.
Sally Foote, managing director of Carwow UK, said: ‘While people in London may be selling their cars to avoid paying emissions charges, there are still plenty of buyers for these vehicles outside major metropolitan areas less likely to be affected by schemes such as ULEZ , or Clean Air Zones.’
Sadiq Khan initially raised £110 million from City Hall reserves to fund the ULEZ demolition scheme, which was originally offered only to benefit recipients. But to expand the pool to allow all Londoners with non-compliant cars to apply, he will spend a further £50m on the scheme
Many of the non-compliant cars sold by Londoners are affordable, well-functioning, long-life vehicles, which is a major criticism of scrapping schemes as a whole and the waste culture they promote.
Auto dealers outside of ULEZ are aware of the value left in these non-compliant engines, and Foote says they’re picking up quality cars in their online dealer auctions.
“We know there is still a high demand for these cars in other parts of the UK,” she said.
While Khan’s scrapping scheme is now open to applications from all Londoners, it is solely on a first come, first served basis and is unlikely to help everyone affected by ULEZ.
Estimates are that it should help 40,000 people, but there are at least 300,000 owners of non-compliant cars in the London suburbs.
Foote added: ‘While a car’s emissions status cannot be changed, there are plenty of other things buyers can do to make their non-compliant car as attractive as possible to buyers – without going to the extreme.
“We recommend anyone looking to sell a non-conforming car to have it appraised – it may be worth more than you think – and to maximize the value of their old vehicle – for example, include photos of the service history in your sales listing.”
“Lists with more detailed car information, especially photo evidence, get more bids from dealers and command a higher price, compared to listings that don’t.”
Sadiq Khan initially raised £110 million from City Hall reserves to fund the ULEZ demolition scheme, which was originally offered only to benefit recipients.
But to expand the pool to allow all Londoners with non-compliant cars to apply for the grant from Friday, he will spend a further £50m on the scheme.
The Mayor of London said: ‘I am not prepared to step back, delay or water down green policies such as ULEZ, which will not only save lives and protect children’s lungs by cleaning up polluted air, but will also help us fight the climate crisis.
‘I have continued to listen to Londoners’ concerns over the past few months and today (Friday 4 August) I am able to announce a massive extension to the scrapping scheme, meaning that all Londoners with non-ULEZ compliant cars can now receive financial assistance. support to switch to greener, less polluting vehicles.
“As we continue to build a greener and healthier London for all, I am determined that no Londoner and no London business are left behind.
‘We have to take people on the road to a sustainable future. We’re making sure help is now available to everyone – and I urge Londoners to come and get help.’
To receive the grant, your vehicle must have been registered with the DVLA since January 30, 2022 or earlier.
The vehicle must also be registered in your name or another person who lives in your place of residence.
MOT, insurance and valid road tax are tick boxes that must be met if Londoners are to receive the four-figure allowance.
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