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Used diesel values to remain stable, says Aston Barclay Group

Used diesel values to remain stable, says Aston Barclay Group

Used diesel values are likely to remain consistent over the coming 12 months if historic price deflation is anything to go by.  

That’s the view of the Aston Barclay Group, which has looked at all elements of the used market and, based on deflation alone on three-year-old/60,000 mile ex-fleet cars, diesel prices have been more consistent than petrol.  

“CAP HPI recently published a year-on-year deflation graph of diesel versus petrol vehicles at three years//60,000 miles and since January 2015, diesel prices have been very consistent while petrol prices fell more dramatically,” explained Aston Barclay Group operations director Martin Potter.  

“In November 2016 petrol and diesel deflation was identical and it will be interesting to see how this maps out during 2017 as the market copes with additional used volumes after diesel sales peaks in 2014 and 2015.”  

The used market bias of diesel and petrol is definitely moving, albeit slowly, according to the vehicle remarketing company. In December 2015, 62.77% of used vehicles sold across the Aston Barclay Group were diesel, with petrol models accounting for 36.18% of all vehicles sold. That compares with 56.4% diesel and 41.8% petrol vehicles sold in April 2017, respectively.  

The move away from diesel was likely to be a gradual process caused by a blend of factors including the 3% tax penalty for company car drivers, the gradual reduction in average fleet mileages, the increase in diesel Vehicle Excise Duty for higher value cars and the greater range and acceptability of electric vehicles and hybrid models, according to Aston Barclay Group.  

Mr Potter said: “Most consumers base their buying decision on affordability and fuel costs when they purchase a used car. If used diesel prices do fall due to increased supply, then demand is likely to increase. Motorists are used to achieving 10-20% improved fuel economy with their diesel car so are not likely to turn their back on the fuel any time soon.”