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Should I Pay The ULEZ Charge or Lease a New Car?

Should I Pay The ULEZ Charge or Lease a New Car?

The ULEZ will come into force earlier than expected on April 8th 2019, costing drivers of non-compliant cars £12.50 per day to enter some areas of the capital.  We find out whether it would be cheaper to pay the ULEZ charge ... or lease a new ULEZ compliant car?

The ULEZ will cover the same area as the congestion charge zone.  It will replace the existing T-Charge when it comes into force April 2019.  Any petrol vehicle which doesn't meet Euro 4 emissions standards will be charged to enter the ULEZ, this is the same as the current T-Charge.  For diesel cars the emissions standards have been made tougher to meet. Any diesel vehicle which doesn't meet Euro 6 emissions standards will be charged.

Read more : What is the London T-Charge?

Charges will also apply 365 days a year in comparison to the T-Charge which doesn't apply on weekends or bank holidays.  Residents will also not get the 90% discount they currently enjoy with the T-Charge.  There will be a 3 year grace period free of charge for residents to organise a ULEZ compliant car, after this time residents with non-compliant cars will be expected to pay the full ULEZ charge every day.

Read more : The Ultra-Low Emission Zone Explained!

For drivers who enter the ULEZ every day in a non-compliant car, the charge for 1 year will be £4,562.50

If you travel inside the ULEZ zone to your place of work on work days only the cost will be lower.  In 2019 there will be 253 working days and the average employee takes 28 days annual leave.  This leaves 225 days to pay the ULEZ charge costing £2,812.50 per year for those whose car does not meet emissions standards.

We've compared the cost of the ULEZ charge to the cost of leasing a new car that would be exempt from charges.  Which would you rather - a brand new car or a ULEZ charge bill?

In some cases, you could save even more money by switching from diesel to petrol...    

Cost of Leasing a Ford Fiesta v Cost of Paying the ULEZ Charge

Diesel

This Ford Fiesta Diesel Hatchback 1.5 TDCi Style 3dr is currently £196.12 per month inc VAT, on a 6+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £1176.72 inc VAT.

Total cost of the 4-year lease £10,394.36. 

Cost of leasing for 1 year £2,598.59

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non-compliant car = £213.91

Saving compared to entering the ULEZ every day for 1 year in a non-compliant car = £1,963.91

Petrol

This Ford Fiesta 1.0 EcoBoost Zetec Navigation 3dr is currently £162.89 per month inc VAT, on a 9+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £1466.01 inc VAT.

Total cost of the 4-year lease £9,121.84 

Cost of leasing for 1 year £2,280.46

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non compliant car = £532.04

Saving compared to entering the ULEZ every day for 1 year in a non-compliant car = £2,282.04

Cost of Leasing a Nissan Qashqai v Cost of Paying the ULEZ Charge

Diesel

This Nissan Qashqai 1.5 dCi Visia 5dr is currently £212.17 per month inc. VAT on a 6+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £1273.02 inc VAT.

Total cost of 4-year lease £11,245.01

Cost of leasing for 1 year £2,811.25

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non-compliant car £1.25

Saving compared to entering the ULEZ zone every day for 1 year in a non-compliant car £1,751.25

Petrol

This Nissan Qashqai 1.2 DiG-T N Connecta 5dr is currently £195.49 per month inc. VAT on a 6+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £1172.94 inc VAT.

Total cost of 4-year lease £10,360.97

Cost of leasing for 1 year £2,590.24

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non-compliant car £226.26

Saving compared to entering the ULEZ zone every day for 1 year in a non-compliant car £1,972.26

Cost of Leasing a Mercedes-Benz C Class v Cost of Paying the ULEZ Charge

Diesel

This Mercedes-Benz C Class Saloon C220d AMG Line 4dr 9G-Tronic is currently £279.05 per month inc VAT, on a 9+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £2511.45 inc VAT.

Total cost of the 4-year lease £15,626.80 

Cost of leasing for 1 year £3,906.70

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non-compliant car = £-1,094.20

Saving compared to entering the ULEZ every day for 1 year in a non-compliant car = £655.80

Petrol

This Mercedes-Benz C Class Saloon C220 AMG Line 4dr 9G-Tronic is currently £310.55 per month inc VAT, on a 6+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £1863.30 inc VAT.

Total cost of the 4-year lease £16,459.15

Cost of leasing for 1 year £4,114.79

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non-compliant car = £-1,302.29

Saving compared to entering the ULEZ every day for 1 year in a non-compliant car = £447.71

Cost of Leasing a Renault Grand Scenic v Cost of Paying the ULEZ Charge

Diesel

This Renault Grand Scenic 1.5 dCi Dynamique Nav 5dr is currently £249.59 per month inc. VAT on a 6+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £1497.54 inc VAT.

Total cost of 4-year lease £13,228.27

Cost of leasing for 1 year £3,307.07

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non-compliant car £-494.57

Saving compared to entering the ULEZ zone every day for 1 year in a non-compliant car £1,255.43

Petrol

This Renault Grand Scenic 1.2 TCE Dynamique Nav 5dr is currently £269.43 per month inc. VAT on a 6+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £1616.58 inc VAT.

Total cost of 4 year lease £14,279.79

Cost of leasing for 1 year £3,569.95

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non-compliant car £-1,387.45

Saving compared to entering the ULEZ zone every day for 1 year in a non-compliant car £992.55

Cost of Leasing a BMW 4 Series v Cost of Paying the ULEZ Charge

Diesel

This BMW 4 Series Gran Diesel Coupe 420d [190] SE 5dr [Business Media] is currently £356.66 per month inc. VAT on a 6+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £2139.96 inc VAT.

Total cost of 4-year lease £18,902.98

Cost of leasing for 1 year £4725.75

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non-compliant car £-1,913.25

Saving compared to entering the ULEZ zone every day for 1 year in a non-compliant car £-163.25

Petrol

This BMW 4 Series Gran  Coupe 420i M Sport 5dr [Professional Media] is currently £273.62 per month inc. VAT on a 6+47 payment profile, 8000 miles per year with a customer maintained contract and an initial rental of £1641.72 inc VAT.

Total cost of 4-year lease £14,501.86

Cost of leasing for 1 year £3,625.47

Saving compared to entering the ULEZ Mon-Fri for 1 year in a non-compliant car £-812.97

Saving compared to entering the ULEZ zone every day for 1 year in a non-compliant car £937.03

If you had a non-compliant ULEZ car, you could be driving around in a brand new petrol BMW 4 series Gran Coupe for less money than you would be paying to enter the ULEZ every day!

All prices correct at the time of writing, but are subject to change.  Following the link in each car description will take you to the most current leasing prices.

Will the ULEZ charge affect you?

The comments above do not necessarily reflect Rivervale's views unless clearly stated.

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