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Proposed penalties for non-Euro 6 diesels will not impact RVs, says CAP

By / 10 years ago / Latest News / No Comments

Only if a similar scheme were rolled out to other UK cities would demand for non-Euro 6 diesels be sufficiently dented to impact on used values.

The firm adds that the only impact on demand for diesels – even in the Capital – could stem from widespread misunderstanding of the scope of the current proposals.

CAP's comments follow last week's announcement by the Mayor of London of his air quality manifesto that sets out plans for an Ultra-Low Emission Zone in central London, with a fee equivalent to double the Congestion Charge for diesels which don’t meet the 2015 Euro 6 emissions standards.

Mark Norman, a senior consultant at CAP, said: ‘Too few cars are affected by the current proposal to have any impact on demand for diesel cars, whether or not they come under the scope of the envisaged daily £10 charge for entering central London.

‘The picture might change if more cities adopt ultra-low emission zones and drivers find themselves paying more penalties but there is still a long way to go before that point.

‘Car values are simply not that sensitive to localised factors, as we have already learned from London’s existing congestion charge.  If they were we might have seen the values of electric vehicles rising in and around the capitol but there is precious little evidence of any difference in residual values between different areas in the country.

‘The excitement in the media generated by the announcement of possible penalties for what will be quite old cars by the time this measure is introduced could be misunderstood by motorists.

‘If they only hear that diesels in general will be penalised harder than other cars for entering the capitol this could conceivably have a small impact, but nothing of sufficient scale to translate into generally lower residual values.”

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.