Londoners £3,200 better off selling their older cars than using Sadiq Khan’s ULEZ scrappage scheme

Londoners with cars that fail to meet Sadiq Khan’s Ultra Low Emission Zone standards are typically more than £3,200 better off selling these older vehicles online than using the mayor’s scrappage scheme.

That’s according online car marketplace, carwow, which revealed that Londoners who flogged non-compliant motors on its platform in July received an average of £5,200 – more than double the paltry £2,000 offer to scrap an older car using Khan’s scheme.

It says it has recently seen a flood of capital-based older vehicles listed by motorists looking to replace their cars before the ULEZ expansion later this month, but dealers outside of London are desperate to snap up quality examples.

Why you might want to think twice about using the ULEZ scrappage scheme: Carwow says Londoners got an average of £5,212 for their non-compliant cars sold using its platform last month – that’s £3,212 more than they would have got using the mayor’s scheme

Last week, the under-fire mayor announced he is opening eligibility for his scrappage scheme to all Londoners ahead of the zone’s expansion on 29 August.

With the zone set to cover all 32 boroughs and Khan coming under increased pressure to delay the widening of its boundary, he hopes the offer of £2,000 to go towards the cost of a replacement vehicle that meets the ULEZ requirements will appease angry locals.

But carwow says drivers with cars that fail to meet the ULEZ requirements are better off selling their vehicles than using the mayor’s grant. 

It’s own platform data shows that individuals living in the capital who sold non-compliant cars in July made £5,212 on average – a huge £3,212 more than what is on offer from the scrappage scheme.

And it says the volume of non-compliant cars being uploaded to its ‘Sell My Car’ platform is surging in the run-up to the 29 August expansion.

The ULEZ expansion scheme is set to start on August 29. Sadiq Khan has pumped another £50million into the scrappage scheme, setting its cost at an eye watering £160million

Sadiq Khan has expanded the scrappage scheme to include all Londoners who live within the 32 boroughs. Those eligible could receive up to £2,000 for scrapping their vehicle

The number of advertised vehicles in London jumped to one in four (26 per cent) of all listings in the months of April through to June, up from one in five (21 per cent) in the opening three months of the year.

Is says this shows the ‘steady rise’ in people trying to sell their vehicles amid the launch of the new rules. 

This trend is even more clear when split regionally, with non-compliant cars accounting for three in ten (30 per cent) of all used cars being listed for sale by London-based drivers.

Londoners are able to get a higher price using online sales platforms, including carwow’s and rivals including Motorway.co.uk.

These platforms allow owners to offer their unwanted motors to used car dealers across the country.

This means their cars will be more appealing to businesses outside of London that are not impacted by ULEZ or similar emissions charging zones.

Sally Foote, carwow’s UK managing director, 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 the big metropolitan areas who are less likely to be impacted by schemes like ULEZ, or Clean Air Zones.’

Sadiq Khan initially drew £110m from City Hall reserves to fund the ULEZ scrappage scheme, which had originally only been offered to those on benefits. But to widen the pool to allow all Londoners with non-compliant cars to apply, he is set to spend another £50m on the scheme

Many of the non-compliant cars that are being sold by Londoners are affordable, good-working vehicles with plenty of life left in them, which is a major criticism of scrappage schemes as a whole and the waste culture they promote.

Car dealers outside of the ULEZ are aware of the value left in these non-compliant motors, and Foote says they are snapping up quality cars in its online dealer auctions. 

‘We know there’s still strong demand for these cars in other parts of the UK,’ she said.

While Khan’s scrappage scheme is now open to applications from all Londoners, it is exclusively on a first-come first-served basis and unlikely to help everyone impacted by ULEZ. 

Estimates are that the should help 40,000 people, but that there are at least 300,000 owners of non-compliant cars in outer London.

Foote added: ‘While a car’s emission status can’t be changed, there are plenty of other things buyers can do to make their non-compliant car as attractive to buyers as possible – without going to bank-breaking lengths. 

‘We’d advise anyone looking to sell a non-compliant car, to get it valued – it might be worth more than you think – and to maximise the value of their old vehicle – for example, include service history photographs in your sales listing. 

‘Listings with more detailed car information, especially photo evidence, tend to get more bids from dealers and achieve a higher price, compared to listings that don’t.’

Sadiq Khan initially drew £110million from City Hall reserves to fund the ULEZ scrappage scheme, which had originally only been offered to those on benefits.

But to widen the pool to allow all Londoners with non-compliant cars to apply for the grant from Friday, he is set to spend another £50million on the scheme.

The Mayor of London said: ‘I’m not prepared to step back, delay or water down green policies like ULEZ, which will not only save lives and protect children’s lungs by cleaning up polluted air but help us to fight the climate crisis.

‘I have continued to listen to the concerns of Londoners over recent months, and today [Friday 4 August] I can announce a huge expansion to the scrappage scheme that means that all Londoners with non ULEZ-compliant cars will now be able to get financial support to switch to greener, less polluting vehicles.

‘As we continue to build a greener and healthier London for everyone, I’m determined that no Londoner and no London business is left behind.

‘We need to take people with us on the path to a sustainable future. We are ensuring that help is now available for everyone – and I urge Londoners to come and get it.’

In order to receive the grant, your vehicle must have been registered with the DVLA since 30 January 2022 or prior.

The vehicle must also be registered in your name or to another individual who resides in your place of residence.

MOT, insurance and valid road tax are tick boxes that must be fulfilled if Londoners want to receive the four-figure grant.

This post first appeared on Dailymail.co.uk