Congestion Charge 'May Impact Used Car Market'Sat, 11/06/2011
The congestion charge in London may result in some used cars suffering from a loss in value, it has been claimed. According to EurotaxGlass, increasing the bill for drivers to around £25 per day would see second-hand higher emissions vehicles drop in price across the market as motorists try to save.
The firm claims there would be an initial surge of part exchanges as drivers attempted to reduce their daily costs and get rid of older cars. This would cause a flood of used cars in the market and then prices would be depressed with no prospect of recovery.
Dealers in and around the congestion zone will have to change the profile of the used car stock to reflect the shift in demand to lower emission vehicles and would also have to more affected stock to other parts of the UK.
However, the congestion charge may mean there is a corresponding increase in the sales of smaller, lower emission and hybrid models.
"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," said the managing editor at EurotaxGlass.