New research from Churchill Expert, Direct Line Group’s flexible fleet insurance provider, reveals a quarter (25 per cent) of London based drivers whose current vehicle doesn’t comply with the emissions standards for the expanded Ultra Low Emission Zone (ULEZ) are planning to switch to a compliant model.
Of these drivers, 31 per cent are considering acquiring a replacement vehicle through alternative, flexible ownership methods as opposed to through traditional purchase models.
The flexible methods being explored include traditional rentals (nine per cent), carshare or short-term rentals (eight per cent), employee salary sacrifice schemes (eight per cent), or subscriptions (six per cent). This compares to only seven per cent of UK motorists in April 2022 who had acquired their vehicles through the same flexible methods. Only 45 per cent of London drivers non ULEZ-compliant vehicles are considering acquiring ULEZ-compliant cars through traditional means, such as outright ownership and Personal Contract Purchase (PCP).
Those looking to make a vehicle switch could face challenges due to availability. Recent research from Churchill Expert shows average waiting times for vehicle fleet drivers, in particular, to lease a new vehicle are over 19 weeks. Adding to difficulties, car purchasing company Auto Trader has reported a ‘shortage’ of affordable, ULEZ-compliant used cars – there are just over 5,000 used cars on the market in London that meet the requirements and cost less than £5,000.
The majority of drivers (56 per cent) in London said they see the expansion as an opportunity to go electric sooner than planned. The flexibility in types of access models is likely to make it easier, and less of a commitment, for drivers to switch to an electric vehicle.
Nicola Richmond, Head of Churchill Expert Flexible Fleet Partnerships, said: “Our research shows that drivers in London are adapting to the expansion of ULEZ in different ways. It is interesting to see many drivers considering flexible methods of acquiring new vehicles, with the majority seeing the expansion as an opportunity to electrify sooner than planned. Churchill Expert is ready to support car subscription and flexible vehicle fleets as they make the transition to electric, as well as those more broadly and are looking for an insurance partner.”
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