FEARS that demand for diesel cars is softening in the used car market are unfounded, it is claimed.
BCA executives say signs are that the current buoyant market for used diesel cars will be maintained. BCA general manager Graham Smith said: ‘We are seeing evidence of this every day in the auction hall as buyers compete strongly for diesel product – particularly for the well-maintained, ex-fleet diesel in a good specification and colour.’
Smith said concerns had been raised recently that the high volume of new diesel product would affect residual values. He said: ‘Now retail dealers are looking to increase their diesel sales two-fold and this demand from professional buyers to buy the best examples for their forecourts is keeping prices firm.
‘Buyers are paying a premium of about 20% for the two-year-old diesel model over the comparative petrol example across the board.’
The company has noted that in the larger MPV and 4x4 markets diesel is the only option that buyers want as petrol equivalents are too expensive to run.
This comes on the back of new research that shows used car dealers are also experiencing strong retail sales and confidence will remain high for the immediate future. This upbeat picture of the used car market is revealed in the CAP Used Car Performance Index that surveys a sample of franchise and independent used car dealers across the UK.