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Diesel residual values slipping at a faster rate than petrol-engined rivals, says CAP HPI

Diesel residual values slipping at a faster rate than petrol-engined rivals, says CAP HPI

Diesel car values at three years/60,000 miles are falling at a faster rate than petrol-engined rivals thus widening the differential between the two fuel types, according to data from CAP HPI.  

Overall used car values in March saw “another reasonably steady month” and values overall remained quite stable, easing back at three years/60,000 miles by 0.1%. The seasonal average movement into the month of April since 2013 has been an increase at the benchmark figure of just 0.2%. Increased stock availability was the key factor behind the reduction in values.  

However, CAP HPI’s Black Book editorial said: “Average diesel values continue to fall at a slightly higher rate than petrol. At three years/60,000 miles petrol has seen an increase of 0.3% with diesel falling back by 0.4%. It appears that a gap in performance by fuel type at this age and mileage band has opened up in the first quarter of this year. 

“Continual press reports painting diesel in a negative light appear to be having an effect on buyer behaviour. It will be very interesting to see what legislation will be introduced to reduce air pollution and the effect that this may have on the values of diesel passenger cars.   

“Historic company car tax has made diesel the fuel of choice alongside better fuel consumption rates as previous governments have sought to reduce CO2 levels. Indeed, tariffs imposed on manufacturers to reduce overall CO2 levels will have led them to a potentially richer mix of diesel engines.   

“Much of the negative sentiment attached to diesel relates to older and less refined diesel power units, the modern day diesel is something of a different proposition and manufacturers have made significant investments in new engine and post combustion technology to reduce NOx levels. Certainly, one to keep an eye on.”