Win your car finance on us! London's Low Emission Zone
Whether you’re a resident in need of a rules recap or a visitor looking to drive in the capital, be sure to check out our complete guide to London’s Low Emission Zone
What is London’s Low Emission Zone?
London’s low emission zone (LEZ) is in place to help encourage heavy diesel vehicles – the city’s biggest polluters – to become cleaner. It operates 24 hours a day, every day of the year, and is enforced on all roads within Greater London, including those at Heathrow and parts of the M1 and M4. The only road that crosses into the LEZ but is exempt from charges is the M25.
There is a daily charge for entering the zone, which ranges from £100 to £300 depending on the type of vehicle that you drive. Vans that don’t meet Euro 3 standards are at the lower end of the scale while HGVs, lorries, and vans over 3.5 tonnes that don’t meet Euro IV standards have to pay more. And the penalties for not paying are even higher, ranging from £500 to £2000 (with reductions available if you pay within 14 days).
Why does London need a Low Emission Zone?
Air pollution is a serious problem and it’s not going away on its own. Research shows that London’s pollution levels are linked to thousands of deaths each year.
In January 2021, Imperial College London looked at the impact of air pollution on the city and the potential effect of the mayor’s planned policies to combat it up to 2050.
The report suggests that these policies – and other improvements to air quality in the capital – could add six months to the average life expectancy of children born in London. It also estimated that up to 4100 deaths were caused by air pollution.
Further research from Queen Mary University London revealed that COVID-19 deaths during spring 2020 were 70% higher in areas with the worst air pollution.
Public health is just one of the reasons why you might be considering applying for a car loan for an electric or hybrid vehicle when choosing your next car.
What’s the difference between the Low Emission Zone and the Ultra Low Emission Zone?
Introduced by the Mayor of London, Sadiq Khan, the Ultra Low Emission Zone (ULEZ) was brought in to help clean up London’s air even further by targeting all vehicles that don’t meet emissions standards. The ULEZ operates 24 hours a day, every day of the year except for Christmas Day, and runs from midnight to midnight. Vehicles that don’t meet the required standards must pay a daily charge to enter the zone.
What areas does the Ultra Low Emission Zone cover?
London’s Ultra Low Emission Zone covers most of the city and is bordered by the North (A406) and South Circular (A205). The zone overlaps with the area covered by the Congestion Charge in some places, and you’ll need to pay that plus the ULEZ charge on those roads to avoid paying a hefty penalty.
What are the penalties for not paying the ULEZ charge?
No matter how short your journey inside the zone is, you’ll need to pay the £12.50 daily charge if your car doesn’t meet ULEZ emissions standards. The charge also applies to residents; the only exception is if you’re parked inside the zone but don’t drive anywhere. If you fail to pay on time, you’ll face a penalty charge of £160 (reduced to £80 if you pay within 14 days).
How can I pay the ULEZ charge?
The good news is that there are plenty of ways to pay the ULEZ charge. You can choose the payment method that’s most convenient for you: online, by phone, through the TfL Pay to Drive in London app, or by setting up AutoPay (which asks for a £10 annual registration charge per vehicle).
If you’re a patient travelling into the ULEZ to attend an NHS hospital appointment, you might be able to get your payment refunded but, in most cases, it’s better to be safe than sorry and pay upfront.
Where are there low emission zones in the UK?
London isn’t the only UK city to have introduced a low emission zone to help reduce air pollution.
Birmingham
Birmingham recently introduced a clean air zone as part of an ambitious plan to ban all private car journeys in the city centre by 2031.
Glasgow
Glasgow brought in a low emission zone on 31st December 2018. Its first phase concerned local buses but its second phase – launching in 2023 – will mean that all vehicles will need to meet stricter emission standards to be able to enter the zone without charge.
Bath
Bath’s new clean air zone currently applies to taxis, HGVs and other commercial vehicles that don’t meet the required emission standards.
Will London’s Ultra Low Emission Zone be extended?
London’s Ultra Low Emission Zone is set to expand to cover a significantly larger area of the city. The Mayor of London hopes to extend the zone to cover the entire capital by the end of 2023. It’s hoped that reducing the number of highly polluting cars throughout Greater London could cut carbon dioxide emissions by between 135,000 and 150,000 tonnes a year.
Which vehicles will be restricted from driving into Clean Air Zones?
To avoid paying ULEZ charges, petrol cars must meet Euro 4 standards and diesel cars must meet Euro 6 emissions standards. In most cases, this means that cars registered with the DVLA after 2005 will be exempt, although models that meet the standards have been available since 2001.
Motorbikes, vans, minibuses, and other specialist vehicles must also meet emissions standards with motorcycles required to meet Euro 3 standards for NOx (this typically applies to all those registered after July 2007).
Lorries, buses, and coaches don’t need to pay the ULEZ charge, but they do have to pay the LEZ charge if they don’t meet low emission zone standards.
How to check whether your vehicle is compliant
You can visit the Transport for London website to check whether your vehicle meets ULEZ standards or not. If you’re planning to buy a new car, the dealer should be able to share this information with you. You can also check the vehicle manufacturer’s website to find out more.
What is the London Congestion Charge?
The London Congestion Charge aims to reduce the volume of traffic in the city centre. It covers most of central London and requires a £15 daily charge for all vehicles driving within the zone during its hours of operation.
Drivers can pay in advance, on the day of travel, or by midnight on the third day after travel (when the cost rises to £17.50 per day). Discounts and exemptions do apply for residents, Blue Badge holders, cleaner vehicles, NHS vehicles, taxis, and motorbikes.
The Congestion Charge is in place between 7am and 6pm Monday to Friday and from 12pm to 6pm on Saturday, Sunday, and Bank Holidays. Charges are waived between Christmas Day and New Year’s Day.
Should I consider buying an electric vehicle?
Whether you’re looking for a car that’ll be exempt from low emissions zone charges or simply hoping to secure low APR car finance, buying an electric vehicle could be a great investment. Electric cars don’t emit any NOx or CO2 from the tailpipe and there are more models entering the used car market each day. With the ban on sales of new petrol and diesel cars set to come into force in 2030, going green could benefit both the environment and your bank balance.
What are the benefits of driving an electric car?
There are several benefits of switching to an electric car:
- While EVs can be more expensive to buy, they’re typically cheaper to run than petrol or diesel cars
- They can be cheaper to maintain
- They produce no emissions and are environmentally friendly
- They’re exempt from paying charges for entering the ULEZ
What’s the difference between an electric car and a hybrid car?
There are three main types of electric cars to choose from: fully electric, plug-in hybrid vehicles (PHEVs), and full hybrids (FHEVs).
Fully electric cars are powered by a battery that needs to be charged at home or at a public charging point. Plug-in hybrids have a battery-powered motor as well as a petrol or diesel engine so drivers can choose to switch between the two, while fully hybrid cars don’t need to be plugged in to charge and switch between the battery and petrol/diesel engine automatically.
Charging an electric car in London
In a recent survey that we conducted, we found that 65% of drivers are hesitant to make the switch to an electric car because of the lack of charging points.
But the UK’s charging network is expanding, and TfL are working closely with partners to develop a network of rapid charging points across London that help drivers charge their vehicles quickly and easily. There are over 116 public charging points in central London alone and it can cost as little as £20.20 to fully charge an EV at one of them. This cost reduces to just £9.20 when charging at home – a £60 saving on average, compared to a tank of petrol or diesel.
Can I get electric car finance?
Electric car finance is available, but the process can be a little different to traditional HP and PCP used car deals as some lender will only finance the vehicle and you’ll need to lease the battery separately. You should also consider whether you’ll need to have a home charging point fitted.
Types of electric car finance
- Hire Purchase HP is one of the most popular types of car finance. It’s a fixed rate loan that typically lasts between one and six years and allows you to split the cost of a used car into affordable monthly payments. You’ll own the car once you’ve finished making all the repayments.
- Personal Contract Purchase or PCP used car deals differ from HP loans as they give you options at the end of your agreement. You can choose to give the car back, buy it by paying the balloon payment, or use any positive equity as a deposit in a new deal.
- PCH is short for personal contract hire and it’s a type of long-term rental agreement that usually lasts between two and four years. You’ll pay fixed monthly payments throughout the loan term and then hand the car back when the agreement ends. We don’t currently offer PCH deals at CarFinance 247.
What are the best used electric cars to buy?
Whether you’re applying for a car loan for a hot hatchback or a family-sized SUV, there’s an electric car to fit every budget:
Volkswagen e-Golf
Volkswagen cars on finance are enduringly popular thanks to the manufacturer’s reputation for solid engineering and reliability. The Volkswagen e-Golf is the electric version of one of the UK’s favourite hatchbacks. The Golf has always been a good all-rounder, able to perform well in narrow city streets and at higher speeds on the motorway, and the e-Golf is no exception. It offers the same classic styling, is economical to run, and has a reach of 144 miles when fully charged.
Looking for Volkswagen car finance? Find out how much you might have to pay each month by checking out our car finance calculator or get a quote today.
Nissan Leaf
The Nissan Leaf is an affordable electric car with a battery that can charge from 20% to 80% in just 60 minutes. There are models to suit a range of different driving styles; the 168-mile Leaf is great for city drivers while the 239-mile range Leaf e+ can handle longer commutes. And thanks to our panel of lenders, we can help you find HP and PCP used car deals for a Nissan.
BMW i3
Offering BMW’s reliability and quintessential sense of style, the i3 can also go the distance. It can reach up to 188 miles on a full charge and its eco-credentials are impressive too: 27 used plastic bottles go into every car to form part of the seats and doors, natural materials are used in place of petroleum-based plastics, and the BMW plant in Leipzig runs entirely on renewable wind power.
MG5 EV
Need enough room for the whole family? The MG5 EV is one of the most affordable electric cars on the market, can travel up to 214 miles on a full charge, and takes just 50 minutes to reach 80% charge. A smart SUV, the MG5 comes equipped with a host of safety features including rear parking sensors, automatic headlights, and rain sensing windscreen wipers.
Hyundai Ioniq
The Hyundai Ioniq is technically a self-charging hybrid rather than a full EV but it’s still a popular choice thanks to its generous cabin space and comfortable drive. Inside, the touchscreen display makes navigating, parking, and choosing the perfect playlist a breeze, while its refined design is sure to turn heads.
