Commercial vehicle dealers are used to legislation changes distorting the market for new and used trucks – there has been each ‘Euro’ standard, digital tachos, weight and driver licensing limits and the fist London LEZ stage. The second stage of the LEZ promises to be just as interesting for commercial vehicle operators and dealers, especially as the van market is impacted for the first time. London is launching the next stage of the low emission zone The Rules London’s LEZ covers a wider area than the congestion charge – it broadly covers the area inside the M25 – not just central London. Operators turning off the M25 are warned by sign that they are about to enter the zone and must turn around to avoid paying the ‘charge’.

From 3rd January 2012, operators who enter the LEZ and whose vehicles do not comply with the new PM emissions standard will be liable for penalty charges of up to £1,000 per infringement.

Trucks

The new rules mean that a truck over 3.5 tonnes has to reach Euro 4 standard for particulate matter to be allowed into the zone without a charge. In practice, this means that any truck registered before the first of October 2006 will not comply. That’s a lot of trucks – we are told and many as 70,000 vehicles will not comply.

Truck dealers are used to the impact of the LEZ on the used truck market – the zone, originally introduced back in 2008 stipulated that trucks had to be brought up to at least Euro 3 standard for particulate matter. This meant that older trucks were moved away from the capital, either for local operations elsewhere in the country or exported abroad.

This has led to a depressing of the prices of older stock and an increase in demand for later, qualifying vehicles. Browse the classified pages of Trucklocator Weekly magazine and you will see the “LEZ compliant” banners across the qualifying vehicles.

In truth, the used truck market has already been distorted for some months – the banners on the used vehicles all declare “2012 LEZ compliance”. None has been selling trucks for operations into London for over twelve months – If you have then your customers will have every right to be on the phone shouting.

Vans

As it is the first time that vans have been included in the LEZ, the restrictions are less draconian than for trucks. Basically any van before a ’51′ plate will no longer be allowed into the zone without charge, unless it has been modified and registered as such.

This will obviously stimulate the market for ‘newer’ used vans – meeting the Euro 3 standard and above, whilst the older vans will be heading up the M1 for the last time.

Most new van makers are offering some kind of incentive for operators of these older vans to trade up to a new one ‘scrappage V2′. Since Scrappage V1 was a bit of a washout for vans, it is unlikely that these cashback incentives will drive hoards of van drivers to new van showrooms in their teenage vans, turning instead to the used market. Read the rest of this entry »