Diesel vehicles continued to slip at a steeper rate than petrol at three years and 60,000 miles with an overall downward movement of 2% in June, according to Cap HPI.
Overall June saw values erode at a greater rate than at the same point in 2016, with an overall downward movement of 1.4% at three years 60,000 miles compared to a fall of 1% in July 16.
Commenting on the trend, James Dower, senior Black Book editor at Cap HPI, said: “The weakening of values can be attributed to the higher levels of stock seen in both the wholesale and retail marketplace giving buyers the ability to be more selective of both stock and the price that they are willing to pay.
“An element of this can be attributed to the change in consumer behaviour although the higher levels of diesel stock will also have been a contributory factor to the reduction.”
Average petrol values remained relatively strong with a downward movement of only 0.7% which showed greater strength than the 1.1% fall at the same point in 2016. Demand for petrol vehicles increased through 2017, and the balance of supply versus demand is far better weighted than that of diesel.
Electric vehicles moved down by 1.2% through June, which represents a far less volatile movement than experienced at the same point last year which saw values decrease by 3.3% at the three years 60,000 mile mark. Vehicles that have greater ranges or have range extenders are the preferred choice and have performed well in this sector.
Petrol hybrid vehicles bucked the trend through June and saw prices strengthen overall, moving up by an average of 0.2% at three years 60,000 miles.
Certain derivatives performed particularly well such as the Toyota Prius (12-17) Plug-In which increased by 3.9%, Lexus RX (12-16) Hybrid which saw values rise by 2% as too did the Prius+ (12- ) Hybrid.
Dower said: “Customers continue to be nervous on the diesel issue; it is interesting to see that this appears to be driving strength into both Petrol and hybrid fuel types.
“While consumer confidence seems to have remained strong despite recent events, the increased stock levels felt both at wholesale and retail levels are likely to continue to lead to values reducing at a slightly higher rate than experienced last year.”
Cap HPI argues that it is likely the market is seeing a change in consumer behaviour. A move to alternative fuels will drive strength into both petrol and hybrid values when compared to last year and see a continual weakening in diesel.