London households face a shortage of cheap car options to avoid ULEZ bills

Lower-income households looking to beat the August extension of London’s ultra-low emissions zone (ULEZ) face a dearth of cheaper options to stay on the road despite the launch of mayor Sadiq Khan’s £110m scrappage scheme, Auto Trader research shows.

Transport for London estimates more than 200,000 drivers of non-compliant vehicles will be impacted by the extension of the ULEZ to London’s outer boroughs on August 29, forcing them to buy a car or van which follows the rules or pay £12.50 to drive in the zone.

But according to data from online marketplace Auto Trader which includes 900,000 daily prices from across the whole retail market – the average cost of a used diesel car complying with ULEZ regulations is now £19,991 – with the equivalent petrol engine costing £15,000.

The average cost of a used electric vehicle is even higher at £36,102.

At the more affordable end of the market, Auto Trader’s data reveals just 5,150 on sale for £5,000 or less across London in January which complies with the new rules.

The cheapest EV available in the London area is £5,400.

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