| Transport Update | London Congestion Charge |
Owners of cars falling into the proposed punitive 'gas-guzzling' £25 congestion charge category (
read our original report here) are likely to face a double financial whammy. If they continue to run their cars in London they'll not only have to pay £125 a week to drive around the city, but are also likely to lose out heavily when they sell their vehicles. Used car price experts EurotaxGlass's is warning that cars emitting 225g/km and above (and those over 3,000cc and registered before March 2001) will see their used values drop as people look for more efficient alternatives.
Adrian Rushmore, Managing Editor at EurotaxGlass's comments: "There would be an inevitable and potentially profound impact on the residual values of higher-emissions cars if these proposals come into force." He adds: "There would likely be a surge in part exchanges as some motorists attempt to reduce their daily running costs for commuting into the Zone, and the resulting increase in volumes of cars passing through dealers and auction houses would quickly depress prices, with no prospect of any recovery."
That's unlikely to please the thousands of motorists in and around the South East whose cars fall into the proposed category, particularly as many are considering the changes a done deal. If so, it's likely the new congestion charges would have far-reaching effects. Car dealers would need to off-load higher emission vehicles further a field and get lower emission stock onto their forecourts.
Rushmore suggests that some marques and segments could be more affected than others. He states: "In Greater London specifically and the South East generally there are already a disproportionately high number of the premium brand, sports and luxury cars which would be most affected by the proposed changes. Some vehicle brands might see improved sales for smaller, lower-emissions models in their range, with hybrids doubtless gaining further ground. Worst affected would be those marques whose ranges are dominated by higher-emissions cars and who currently rely on sales within the South East of England.
Kyle Fortune - 14 Aug 2007
