Congestion charge rethink to hit used car prices

Used price experts Glass's Guide warn of damage to used values if new congestion charge plans go through

Auto Express Car Reviews

By Ross Pinnock

28th August 2007

Fresh proposals for congestion charging could spark second-hand turmoil for owners of the most polluting cars, according to experts at the used price bible Glass’s Guide.

Proposed changes to the London scheme, which is widely viewed as the blueprint for other cities around the country, could see the most polluting vehicles charged as much as £25 per day to enter the central zone.

The maximum daily rate would apply to cars with CO2 emissions in excess of 225g/km registered since March 2001. It would also apply to older vehicles with an engine capacity above 3.0 litres. Adrian Rushmore, managing editor of Glass’s Guide, said: “There would be an inevitable and potentially profound impact on the residual values of high emission cars if these proposals come into force.

“There would likely be a surge in part exchanges as some motorists attempt to reduce their daily running costs. The resulting increase in volumes would quickly depress prices, with no prospect of recovery.”

While revisions to the scheme would primarily affect car values around the capital, motorists in other parts of the country could also be hit. “Given that other major cities are looking to follow London’s example, the downturn in values could easily spread beyond the south east,” explained Rushmore. Manchester and Edinburgh are two other cities considering congestion charging.

The flipside is increased values for cars which emit less than 120g/km, as they would be exempt from congestion charging.