Manheim: Diesel price drop helping improve used car values
24 September 2015
Author: Daniel Puddicombe
The prices of used diesel cars sold at auction in August rose by £242.44 compared to the first six months of 2015, remarketing company Manheim has said.
This compares to an increase of £37.97 for used petrol cars during the month compared to the first half of the year.
Manheim claimed the price increase for diesels was down to the price of diesel falling below the cost of petrol in late July. The last time diesel was cheaper than petrol at the pumps was in 2001, Michael Buxton, Manheim's CEO said.
"As we enter the new 65-plate registration period, it will be interesting to see whether the fuel price difference has any impact on new vehicle registrations, and whether we continue to see this trend reflected in the used vehicle market," Buxton said.
However, in light of the ongoing diesel emissions scandal, valuations experts Glass's have speculated that the values of Audi and Volkswagen diesel models may be hit.
"These are brands built on decades of credibility and that credibility has been badly damaged," Rupert Pontin, head of valuations at Glass's said.
"Our view has been for a while that Volkswagen sells too many cars for a semi-prestige brand and Audi too many for a prestige one. The volumes are large enough that they are creating downward pressure on RVs," he added.
"The emissions scandal is obviously not going to help this situation. If buyers lose trust in the brands, then there is inevitably less demand and values suffer," Pontin concluded.