Diesel Residual Values Set to Rise Amid Falling New Car Sales, Says Autorola

Are you in the market for a used car? If so, you may want to consider looking at diesel vehicles. According to Autorola, a remarketing firm, diesel residual values are on the rise due to a significant decrease in new car sales. In fact, diesel demand and prices were described as “very strong” in the second quarter of this year.

Autorola’s analysis of used cars sold online revealed that diesel prices rose by 0.7% in Q2, reaching an average of £17,462 at 42 months and 30,967 miles. Diesels accounted for nearly 20% of all used cars sold online during this period, making it the second most popular powertrain after petrol.

This increase in demand for used diesel vehicles comes at a time when new car sales are declining, particularly for diesel vehicles. The latest data from the SMMT shows that diesel take-up plummeted by 17.2% in June, holding just a 7.3% market share.

Jon Mitchell, director of Autorola UK, believes that the used car market will eventually reach a tipping point where diesel prices will rise due to the decrease in new car sales over the past five years. He also noted that demand for used petrol and electric vehicles has remained consistent, with petrol prices rising and electric vehicle prices increasing due to model mix rather than surging demand.

Overall, Q2 has been a positive quarter for the used car market, with demand and sales volumes bouncing back compared to the same period in 2023. Mitchell predicts that the market will remain buoyant well into 2025.

So, if you’re in the market for a used car, consider looking at diesel vehicles. With diesel residual values on the rise, now may be the perfect time to make a purchase.