Cost of Relocation: London increases charges to drive in central London: Finance Trading Times

Cost of Relocation: London increases charges to drive in central London

How much is the cost of relocation? How easy is it to live in a metro city with cosmopolitan culture and all hi-fi shops, airports, facilities and connections? How much does one have to pay for settling down in a new city?

Here is a news item that will give a glimpse:

Owners of fuel-hungry cars will have to pay up to £6,000 a year to drive in Central London under the scheme by London Mayor Ken Livingstone to convert the congestion charge into an emissions tax. Thousands of families with larger cars, such as people carriers, will be caught by the new £25 daily charge for vehicles that emit more than 225g of carbon dioxide per kilometer (writes Ben Webster, Transport Correspondent).

At least 15,000 owners of larger cars living inside the charging zone will lose their residents’ discount and their daily payment will rise by 3,000 per cent from 80p to £25.

Owners of fuel-inefficient cars face a further penalty next month in the Budget, which is expected to include increases in the top rates of road tax.

6000 GBP per year roughly means 4.8 lakh Rs. per year. I have stayed in London for a long time. A nice second hand car in London can be bought for as little as just 500 GBP, while a nice luxury car is available for just around 800 GBP, even below. How about the cost of maintaining it in a city like London? Does anyone willing to buy a car for £800 be equally willing to pay £6,000 as congestion and emission charges for using the car in the city? What about the money he will spend on the rising fuel prices?

People are now taking pride in the Indian small car project called Tata Nano, the common man car – available for the so called price of 100,000 only – making it the cheapest car in the world. Though along with necessary accessories & registration, it will cost somewhere around 110,000 to 120,000, but what about the congestion it will create on the roads and the emissions that it will cause to environment?

The biggest problem is that since the car is priced at just 100,000, even a person with monthly salary of 5,000 will become eligible to take a loan for buying this car. Agents working for loan departments of the banks will make sure that all such people really purchase this car. We all know how much educated we Indians are, when it comes to making financial transactions and decisions. We all know how well agents will psychologically pressurize people to buy this car, take a loan by hook or crook. Car in India is still considered a luxury and status symbol. Who would not like to keep a car in their house if they can afford it by loan?

Continue to Part 2: Cost of Relocation: Metro City Scenarios in India
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1 Comment: Post your Comments

truefrenzs said...(on 28 February 2008 at 06:23 )  

Suggestion: Giving an example of any indian metropolitan city would have helped more

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