Van rental company Northgate is offering a discount on commercial van leases, with terms of a year or more, to businesses taking advantage of a £23m Transport for London (TfL) scrappage scheme.
The ULEZ will be introduced in London on April 8, and will bring in charges for vehicles which do not meet stricter emission standards that apply 24 hours a day, 365 days a year.
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Diesel vans which do not meet the latest Euro 6 standard will have to pay £12.50 a day to drive in central London.
The scrappage scheme, introduced by the mayor of London Saddiq Khan, is designed to help London’s micro-businesses – defined as those with fewer than 10 employees – to switch to the cleanest vehicles, including electric.
Under the TfL Flexible Scrappage scheme, businesses can apply for a grant of £3,500 if they prove to have entered the existing Congestion Charging Zone (CCZ) 52 times in the last six months and provide a certificate of destruction for a non-compliant vehicle.
Northgate could not reveal the extent of its Scrappage Scheme Discount, but said it included servicing, maintenance and road tax for the hire of a new Euro 6 compliant van to be exempt from the new ULEZ charges.
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By GlobalDataAlternatively, businesses that are registered in London and provide a certificate of destruction for a non-compliant vehicle along with a log book, can apply for a grant of £3,500 under the scrappage and buy and lease option.
The launch of the scrappage scheme follows ongoing calls from across the industry for help for small fleets, which are faced with the high costs of updating their vehicles. In an attempt to help micro-businesses – defined as those with fewer than 10 employees – the initiative encourages scrapping older, more polluting vans and switching to cleaner vehicles.
From 8 April, operators running vehicles that don’t meet the Euro 4 standard for petrol cars, vans, minibuses, and other specialist vehicles and Euro 6 for diesel versions of these vehicles, will have to pay £12.50 a day to drive in central London. The charges will apply 24 hours a day, seven days per week.
Kathleen Whittam, head of strategic accounts of Northgate Vehicle Hire said, “Having cleaner air in our cities is of paramount importance for all our futures. For London-based businesses, we also understand the impact that ULEZ could have on running costs. We’re delighted to be supporting the ground-breaking scrappage scheme designed to help businesses run compliant vehicles, through offering an exclusive ‘scrappage scheme discount’ on our van hire solutions, alongside offers on our Euro 6 vans available for purchase. This will enable eligible businesses to keep moving forwards without downtime.”
