Clean air campaigners have welcomed the controversial expansion, but it has faced a backlash from others protesting the added expense.
When a consultation on the scheme’s expansion was first announced back in 2022, Mayor of London Sadiq Khan said: ‘The triple challenges of tackling toxic air pollution, the climate emergency and congestion mean we need to further reduce emissions from vehicles in London. We simply don’t have time to waste.’
‘The climate emergency means we only have a small window of opportunity left to reduce carbon emissions to help save the planet.’
So, if you’re looking to swap to a ULEZ-compliant vehicle in anticipation of the change, how can you save money on purchasing a new car?
Here is what you need to know.
How to save money on buying a car
The money-saving experts at Which? have put together some top tips on how to save cash when purchasing a new car.
Sam Richardson, Deputy Editor of Which? Money said: ‘The price of new cars has gone up significantly since the pandemic, and issues with affordability have been thrown into even sharper relief by the cost of living crisis.
‘By following our advice on buying new and used cars and being prepared to haggle and ask for discounts, you can make substantial savings.’
Compare the prices of new and used cars
While it might sound obvious, considering purchasing a used car can save you a tremendous amount of money – albeit with some drawbacks.
It’s possible you may have to compromise on aspects of the specification of your new car, as, unlike when buying new, you won’t be able to choose all the fixtures and fittings yourself.
Consider the loss of warranty as well, as new cars often come with extended warranties that see the dealer foot the bill for any problems that arise in the short to medium term.
It is essential to conduct thorough research and compare prices of both new and used models of the car you are interested in purchasing. Refer to car reviews from Which? to get an idea of the typical cost, but also consider seeking out price quotes from brokers.
It’s worth doing your research to ensure a used car you buy is still ULEZ compliant.
Factor in delivery
Whether you are buying a new or used car, it’s essential to consider that you are unlikely to be walking out with the keys that day.
Which? tell us: ‘Margins on new cars have been very small since the pandemic, and with long waiting lists – many vehicles will take more than 12 months to arrive on your driveway – dealers don’t often need to sell a car cheaply.’
It’s also worth noting that if you buy a used car online, it can often be located in a different part of the country from where you live.
This means you should factor in the cost of getting the new car to avoid the nasty surprise of an extra fuel bill or train ticket.
Consider an ‘old’ new car or a ‘new’ old model
Pre-registration or ‘pre-reg’ cars have never been owned by an individual but have been registered by a dealer or by a leasing company, meaning they can be ex-demonstration models or similar.
While finding pre-reg cars became less common during the pandemic due to stock shortages, numbers are now starting to increase, and buying a pre-reg car can save you money on a new alternative.
Which? say: ‘By purchasing a pre-reg car, you’ll become the second owner. This might cost you when you come to sell in the future, but the savings over a box-fresh model often make it worthwhile.’
Consider downsizing
With the ULEZ expansion looming, it’s worth considering whether you need a larger and more expensive vehicle.
Many drivers get into the habit of purchasing a similar car to the one they have owned before without giving it much thought.
However, it’s worth considering whether a smaller, less expensive vehicle would actually be suitable for your needs.
While 4x4s may be spacious and suitable for rough road conditions, they also come with a premium price tag.
Modern smaller cars are practical and have premium features such as climate control, parking cameras, and smartphone connectivity, making them comfortable and convenient to use. There’s no need to compromise on comfort when choosing a smaller vehicle.
Which? say: ‘You can save a lot of money on running costs by choosing a vehicle that’s a little smaller and missing a 4×4 badge. For starters, fuel bills tend to be lower and smaller tyres cost less to replace – plus, SUVs often attract a price premium over a similarly sized estate car.’
Ask about discounts
While cash buyers have traditionally gotten good deals, dealerships are often interested in customers buying on finance, as they earn a commission through it.
Haggling over the cost of a new or used car can occasionally save road users vast sums of money, so it might be worth enquiring about finance options first – even if you go on to buy cash in the end. A discount may appear!
If you do decide to buy on finance, then it’s worth considering the higher rates of interest that we are currently seeing and when they are likely to come down.
Consider electric cars
New diesel and petrol cars are set to become unavailable from 2030 in a bid to combat climate change, so it might be worth considering making the move already.
While electric cars can be pricey up front, they can often save hundreds of pounds on filling up with petrol and diesel.
However, it is worth considering your home setup before purchasing an electric car.
If you have off-street parking and access to an electrical point, then an EV might be for you, but if this is different, it might be impractical.
It says: ‘Owners of a mid or large SUV can save just over 5p per mile on fuel costs if they charge at home on a standard tariff compared to somebody running a diesel version of the same car.
‘That saves £427 over a year (based on 8,100 miles – the average mileage from Which? ‘s latest car survey). This figure increases to over £1,000 per year (or 12.5p per mile) if you have an off-peak rate and can charge during off-peak hours. Be aware that charging costs increase outside of the off-peak rate.’
Look into the scrappage scheme
The scheme was recently expanded, with ‘tens of thousands more Londoners now having access.
Grants worth thousands of pounds are available to charities, sole traders, and businesses registered in London.
More information is available on the TfL Scrappage Scheme website.
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