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REMARKETING: Which fuel's gold at auction time?

Date: 20 November 2014   |   Author:

 

Smear campaign

There has been an attack on the image of older diesel models by London mayor Boris Johnson, who wants to introduce a £10 penalty charge for non-Euro6 diesels by 2020.

But while that may have some impact on diesel's reputation in London, particular with dirty taxis and buses, it is unlikely to have a radical impact on prices across the country.

According to Cap, there would only be a negative impact on diesel values if a similar scheme were rolled out to other UK cities.

Mark Norman, a senior consultant at the valuation experts, says: "Too few cars are affected by the current proposal to have any impact on the demand for diesel cars, whether or not they come under the scope of the envisaged daily £10 charge for entering central London.

"Car values are simply not that sensitive to localised factors, as we have already learned from London's existing congestion charge. If they were we might have seen the values of electric vehicles rising in and around the capital but there is precious little evidence of any difference in residual values between different areas in the country."

John McConnell, Lex Autolease remarketing general manager, says that while there is some strong competition between diesels and petrols on an mpg basis, it is unlikely consumer perception will be affected to the extent that there is an impact on diesel prices.

Rupert Pontin, Glass's head of valuations, said the attack on older diesels is another way to justify greater taxation. He also believes that the risks of the impact of pollution on these older diesel vehicles were known when they were sold so it should not have been a surprise.

"Equally, as technology has improved and we have cleaner and greener engines, increased taxation to encourage buyers to move to a more modern car is welcome," he says.



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