Diesel used car values remain strong despite health concerns

Used diesel car values have remained strong over the past year despite environmental and health concerns but it is still a “very delicate” area.

Valuation guide cap and auction house BCA say negative publicity surrounding diesel has not dented values.

James Dower, senior editor Black Book at cap hpi, said, so far, there has been no impact. “There seems to be no waning in demand for diesel vehicles in the new or used market. Values have moved broadly in line with petrol engined equivalents through 2016, with little visible impact from headlines through the year.”

At auction, the negativity surrounding emissions and environmental concerns appears to have had little effect, so far. With hundreds of thousands of vehicles being sold online and at physical auction, BCA sees little or no dent in values or demand.

Simon Henstock, COO at BCA’s remarketing arm, said: “The data shows no easing of demand for diesel cars despite a year of headlines. In terms of value, on average diesel cars outperform petrol cars by a substantial margin, despite being significantly higher mileage on average when sold.  Performance against guide values is typically higher as is retained value against cost new. This trend is well established and has not changed over a number of years and is a reflection of the typically higher original purchase cost for diesel product.

“The UK motorist still wants economical motoring and we’ve seen no push back on environmental issues. Looking at price performance for diesel vs petrol in detail shows that average diesel values rose by £824 or 8.7% between January and October 2016. In comparison, petrol values improved by £441 or 8% over the same period.  On average diesel cars retain around 4% higher values than petrol cars when compared to their original cost new.”

The future for diesel values, however, is unclear.

Rupert Pontin, director of valuations at Glass’s said: “This is a very delicate area. At the moment we have not seen a drop in values. However, until we see some definitive action and set pricing laid down with implementation timescales then the trade will not understand what should be penalised and how.”