ULEZ and Low Emission Zone fleet upgrade finance helps operators replace non-compliant vehicles with Euro 6 (petrol/diesel) or zero-emission alternatives. Finance spreads the capital cost of fleet upgrades, making compliance achievable without a single large capital outlay. This page covers London ULEZ, the London LEZ for HGVs, and Clean Air Zones in other UK cities.
The Regulatory Landscape
London ULEZ - applies to vehicles that do not meet Euro 4 (petrol) or Euro 6 (diesel) standards. The expanded ULEZ now covers all of Greater London. Daily charges apply to non-compliant vehicles entering the zone.
London Low Emission Zone (LEZ) - applies to heavier vehicles over 3.5t. Euro VI is the required standard for HGVs. Non-compliant HGVs face daily charges of up to £300.
UK Clean Air Zones (CAZ) - Birmingham (Class D), Bath, Bristol and other cities operate CAZs. Standards and charges vary; operators running in multiple cities should check compliance for each zone.
Vehicle Types for ULEZ/LEZ Upgrade Finance
- Euro 6 diesel vans - replacement for older diesel LCVs entering ULEZ
- Electric vans - Ford E-Transit, Mercedes eSprinter, Renault Master E-Tech
- Euro VI HGVs - for LEZ compliance; tippers, flatbeds, artic combinations
- Euro 4/5 petrol cars - LCVs used by businesses in outer London
Rate Guide - October 2026
| Vehicle Type | Rate Range (APR) | Term | Notes |
|---|---|---|---|
| New Euro 6 diesel van | 5-7.5% | 3-5 years | High demand, good residuals |
| New electric van | 5-8% | 3-5 years | Strong lender appetite |
| New Euro VI HGV | 5-8% | 3-5 years | LEZ-compliant |
| Fleet of 5+ upgrade vehicles | 4.5-7% | 3-5 years | Volume pricing |
Worked Example - 10-Van Electric ULEZ Upgrade
| Detail | Figure |
|---|---|
| Assets | 10x Ford E-Transit 350 electric vans (2024) |
| Price per vehicle | £55,000 |
| Total value | £550,000 |
| Deposit (10%) | £55,000 |
| Amount financed | £495,000 |
| Term | 48 months |
| Rate | 6.5% APR |
| Monthly payment | approx. £11,760 |