Uncertainty about the situation in the Middle East, and the subsequent rise in fuel prices, is widening the gap between values for used petrol and diesel cars says PLEX Prices, the motor trade’s used vehicle price guide.
“For some time we had seen the gap in residual values for petrol and diesel cars get smaller and smaller. However, with the price of oil being affected by the threat of US military action against Saddam, that situation is now changing as motorists contemplate the likelihood of significantly higher fuel costs. Just as we saw in the fuel crisis of 2000, diesel vehicles are becoming more attractive to buyers as they generally offer better fuel consumption,” said John Coates, Editorial Director of PLEX Prices.
Oil prices have already risen significantly, with the result that those in the market for a second hand car are increasingly turning to diesel vehicles. This has already been reflected in higher trade values for turbodiesels in the MPV, estate and 4×4 off-road sectors. For example residual values for most 4x4s traditionally increase as winter approaches, but this year values for used petrol 4x4s are falling, while diesel off-roaders command much better prices.
As fuel prices continue to go up, PLEX believes that the trend will be
repeated across the used market in the next few months.
“Most motorists have to consider the bottom line,” said John Coates, “and the fuel economy benefits of diesel cars, combined with the arrival of a wide range of excellent used diesels on the market, such as the more recent BMWs, Citroens and Peugeots, is attracting many drivers who would not have previously considered a diesel car.”
For more on the PLEX price guide, visit www.plexprices.co.uk
(In case anyone is wondering, that’s a Toyota Yaris D-4D in the photo. Probably the best and most economical small diesel you can buy.)