With EVs storming the market it’s easy to see why diesels are starting to get a bad rep, but there’s strong evidence that there’s still demand for diesels in the used car market.
Okay, so the Government has announced that only electric vans and cars will be allowed to be sold in the UK by around 2040. This is part of a long-term strategy to make the UK greener and combat air pollution, but there’s still a long way to go. In the run up to this, there are still more diesels in the used car market than EVs and dealers can benefit from understanding consumer needs when it comes to used diesels.
Here are some things to keep in mind:
- In the used car market, diesels heavily out-number EVs
- For potential used car buyers, old diesel ‘tech’ is proven and reliable. Whereas older EV’s may present some concerns in terms of battery life/deterioration
- There’s a limited range of used EVs on the market, and those available may have limited capabilities compared to more advanced models
- C02 emissions from diesel cars are generally lower than their petrol counterparts
- Slightly newer used Diesel cars produced from 2015 onwards comply with Euro 6 regulations – they’re the cleanest in history
- EVs come in at a much higher price point, making them an unattainable dream for many consumers
It’s no secret that electric vehicles are (quite rightly) the future, but at a time when the ongoing Covid pandemic is impacting consumer confidence, employment and the economy, a new EV might not be a viable option for many people. The significant growth in sales, post the initial lock-down, was in used cars and often older, more affordable used cars.
It’s looking likely that there will be a long ‘tail’ to the diesel vehicle market. Here’s what valuation forecasters CAP HPI, noted in their review of the UK’s October used car market;
“The data also shows diesel cars are selling quicker than petrol ones on retail forecourts. Diesel models have also dropped by less in trade value (-0.4% for diesel, -0.7% for petrol), illustrating that in the used car market at least, diesel cars remain in demand, particularly larger vehicles.”
Speaking about EV’s, the same report noted; “Electric vehicles volumes continue to increase in the market, and while for many models, supply and demand are well-matched, several models have been under price pressure. Some mainstream electric models that have dropped in value are the VW. Golf, BMW i3 and Nissan Leaf.”
The switch from combustion engines to EVs will probably be a controlled one as supply and demand begin to align. Right now, for many people looking at a used car, the overall used diesel car proposition is continuing to stack up.