BVRLA conference: 'Diesel hasn't gone away,' says Cap forecasting editor
17 December 2015
Despite the belief that diesel sales have been falling following the emissions scandal, Dylan Setterfield, senior forecasting editor at vehicle valuers Cap, stated that while petrol sales outwardly exceeded those of diesels in March, June and September, this only reveals manufacturers engaging in "forced registration activity", which tends to focus on smaller, petrol cars.
"Diesel still plays a big part in that picture and it hasn't gone away," he said. There is a question mark over residual values for electric cars and plug-in hybrids, he continued: "It remains to be seen what happens when they come back to the used market because company cars users are choosing them for entirely different reasons to those which a second buyer would use."
The issue is that all of the incentives and encouragement from Government is directed towards the first owner, focused on the initial purchase of the vehicle and not throughout its life. Consequently, without the draw of such tax savings, the appeal of electric and plug-in vehicles may be lower to subsequent owners, cutting their residual values and ultimately making them more expensive for the initial owner.