Government launches used car fuel economy label

Sadiq Khan MP, Minister for Transport, today launched a colour-coded fuel economy label for used cars after research found that consumers are more likely to base purchasing decisions on fuel efficiency.

The label, which follows on from the new car stickers launched in 2005, details the running costs, fuel consumption and environmental performance of used cars.

According to Greg Archer, MD of the LowCVP organisation, which developed the labels:

• 94% of dealers now display the new car label; and
• 71% of car buyers say the label influences their choice of car

Around 1000 dealers have signed up to the voluntary used car scheme, which is backed by the Retail Motor Industry Federation and the SMMT.

Dealers can choose to label cars up to two years old but 94% of those who have signed up have said they intend to label cars dating back to 2001.

Sales by private individuals are not covered by the scheme.

Sadiq Khan said at the launch: “Running costs and environmental performance are increasingly important to new and used car buyers.

“This will give people the information they need to make the right purchase for themselves and the smart purchase for the environment.”

Edmund King, AA president, added: “Motorists are fighting back against high fuel prices by choosing more fuel efficient cars, in fact 62% of our panel say when buying a car they would choose a more fuel efficient one.”