London’s Ultra-Low Emissions Zone, or ULEZ, expanded in August 2023 and it now covers all 32 Boroughs of London within the M25 – roughly 580 square miles. Thousands of commuters are denied some of the cheapest, most economical used diesel cars in theory – but there are still plenty of affordable used car options to keep you on the road.
In basic terms, diesel cars prior to 2015 and the majority of petrols built before 2006 are now subject to a £12.50 per day charge to enter the ULEZ zone. And unlike the congestion zone, it is in operation 24 hours a day, seven days a week, all year round. There are many cars that fall outside of this (including some older diesel models), though – so it’s not completely cut and dried. Before buying a used car, you should check its registration on the TfL website.
Because the government goes by the mandatory date for emissions standards to be met, many people are simply unaware of just how many cars remain ULEZ-compliant. There are many good reasons for choosing the newest, cleanest second hand car – but if you’re looking for a ULEZ-friendly bargain it’s surprisingly easy to find a good car for less than the £2,000 scrappage allowance being offered to everyone who lives in London.
Scroll down for our list of some of the best ULEZ-compliant cars for £2,000 or less.
Best ULEZ-compliant cars for less than £2,000
Editor’s choice: Mercedes-Benz A-Class (2005-2012)
Roomy, cheap to buy, and surprisingly good to drive
If you’re in the ULEZ, you’re familiar with the value of space. Few cars offer the same amount of space for the room they take up in a car park – or the price – and the second-generation A-Class in petrol form offers impressive passenger or cargo space in the same footprint as a Renault Clio.
When new it was a fashionable, upmarket urban car but fell out of favour quickly – now it’s a bargain supermini with a distinctive style and unique abilities. Buy automatic versions with care, but the petrol engine and manual gearbox combination is generally reliable.
Read our full Mercedes-Benz A-Class review
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Ford StreetKa (2003-2006)
Good fun, open-topped driving for very little money
This front-wheel drive roadster is simple fun and a hoot to drive in cities and in the country. Its peppy engine shared with the much more expensive SportKa ‘warm’ hatch, and is good fun to drive. Watch out for rust, but they’re not that bad unless they’ve lived by the coast all of their lives – and not well cared for.
There aren’t that many around, so you’ll need to scane the owner’s club and small ads to find one, and don’t be tempted to buy ones from optimistic ‘classic Ford’ dealers. The good news is that there are examples from £750 if you’re prepared to work on your car, with even the best ones struggling to better £3,000… for now.
If the roadster life is tempting, we can also recommend the Mercedes-Benz SLK (R170). A surprising number of early models are ULEZ compliant, particularly the SLK 200.
Read our full Ford StreetKa review
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Alfa Romeo Mito (2009-2018)
Stylish, proven mechanicals, cheap to buy
It’s a Fiat 500 in disguise, with a fizzy 1.4-litre engine. Avoid the cheapest ones as they’re likely to be the tiny, non-ULEZ diesel, but for £2,000 you can pick up a petrol MiTo and it’s got a distinctive style that has aged well, particularly as most small cars have got somewhat bigger.
It was on sale new until 2018, so parts and spares supply should be good – and sharing tech with the Fiat 500 means most garages will be able to service it without drama. As usual, best cast your net to the small ads and small, independent dealers and avoid overpriced examples on finance.
Read our full Alfa Romeo Mito review
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Ford Fiesta 1.6 Zetec S (2004-2017)
Great driver’s car, but avoid thrashed examples
Available in fifth generation (2002-2008) and sixth generation (2008-2017) the Zetec S is the affordable alternative to an ST150 or ST200, and as such great to drive and a bit of a bargain. You’ll find clean examples of the earlier model with a bit of patience, and plenty of 2009-2011 Fiesta Mk7s – but beware the 1.6 TDCI Zetec S diesel, as that isn’t ULEZ compliant.
It’s well worth looking at for rural areas though. Low mileage ULEZ victims are a bargain, and cheap to run. Like all cars in this price range, the best place to find good examples is with genuine small dealers, relatives, and the small ads. Remember also, try to avoid badly modified and thrashed examples.
Read our full Ford Fiesta (Mk6) review
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Alfa Romeo 147 1.6TS (2001-2007)
It’s a family car, but with added fizz
There’s a lot to recommend the Alfa Romeo 147 thanks to its cool image, twin-cam, rev-happy engine, and dynamics set firmly to ‘fun’. It’s clearly a modern classic in waiting – but while you wait, it’s good to know that petrol models are happily ULEZ-compliant.
Obviously, it’s an old Alfa, so although it’s nowhere near as bad as pub bores might suggest, there are one or two issues. The interior and electrics are fragile in places, and it’s already becoming rare, which might make finding parts difficult. But it’s a distinctive alternative to an Audi or Volkswagen that still projects an image of Italian stylishness.
Read our full Alfa Romeo 147 review
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Audi A3 (1996-2003)
Small, stylish and surprisingly easy to run
The first-generation Audi A3 has a lot going for it these days, and although even the newest ones more than two decades old, it still looks reasonaly modern. It’s also surprisingly compact, which means that the A3 is seriously city friendly. We’re looking at a later model to squeeze into ULEZ, and you’ll definitely want the 1.8-litre petrol turbo.
Being pretty much identical to the Volkswagen Golf Mk4 under the skin means keeping one on the road is simplicity itself, with plentiful, cheap parts available. Watch out for rusty front wings, tired engines and signs of abuse, buy from an enthusiast, and you should be able to find a tidy example for less than £2,000.
Read our full Audi A3 review
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BMW 1 Series (2004-2011)
Maybe not the ultimate driving machine, but pretty good
The first-generation BMW 1 Series was a bit of an ugly duckling that proved to be a beautiful swan of a driver’s car. It was rare for being rear-wheel drive in a market of front drivers, but that meant the steering and handling was very similar to the excellent 3 and 5 models. For ULEZ happiness, you’re going to need to choose a petrol model, which is no bad thing given how good they are.
There are lots of examples still on the road, and that means parts and support is plentiful. Prices for used parts are good, dealer stock less so. Watch out for rusty sills and crash damage, and always buy from someone you trust.
Read our full BMW 1 Series review
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Toyota MR2 Mk3 (2000-2006)
Bulletproof open-topped fun
Mid-engined fun and Japanese reliability – this is a recipe for lasting happiness. Yes, it’s mid-engined, and has very little in the way of interior storage space, but if you can live with that, there’s little to complain about here. Reliability is a given, and dealer support is excellent.
They’re still temptingly cheap, too, not being swept away by the modern classic boom (yet). How cheap? £2,000 will still get an MoT’d 2002-on MR2 Roadster, though budget another £800 for a hardtop if you’re parking it in the street. Issues? Again – watch out for accident damage.
Read our full Toyota MR2 review
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Citroen C3 Pluriel (2003-2010)
Left-field choice – with the full open-topped experience
The Citroen C3 Pluriel is a idiosyncratic small car with multi-mode roof – it’s a full convertible or a fabric-topped two-door saloon, in a city-friendly package. Be in no doubt, it is a brave choice given how the removable roof rails can be quite leak-prone, but when it’s all working it’s unlike anything you can buy new.
There are small diesel models, but you need to ignore these for obvious reasons. Good job that most survivors are petrol and cost from less than £2,000 for a clean example. Our advice is to check the roof rails and seals, ideally buy from a long-term private owner, and join an owners’ club or community foir the best support.
Read our full Citroen C3 Pluriel review
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Ford Mondeo ST220 (2002-2007)
Fast Ford in saloon or estate form is a great drive
ULEZ compliant fast Ford for not much cash? There are a few to choose from here, but we rather like the Mondeo for its all-round usability and space for a growing family. Admittedly this one’s a V6 with 140mph potential – and with running costs to match – but for your £2,000, a decent example offers amazing excellent value for money.
However, the ST220’s reputation for expensive repairs is justified, and this will be a fact of life if you choose a badly-maintained, neglected example. However, at this price you could have the engine rebuilt and still be paying less than any comparable new car’s PCP deposit…
Read our full Ford Mondeo (2000-2007) review
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Keith Adams is the editor of Parkers and has been an automotive journalist since 2004. He’s also edited Classic Car Weekly, Modern Classics, Honest John Classics as well as contributed to CAR, Evo, Octane, Autocar and Pistonheads as well as many other titles in a varied career.
