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Used petrol car margins 8% higher than diesels, says Glass's

Date: 28 September 2016   |   Author: Daniel Puddicombe

Used petrol car margins have been at least 8% higher than equivalent diesel models in the last year, data from valuations experts Glass's has revealed.

However, Glass's said that diesel vehicles will be here to stay for a while, as they are still in demand and are selling reasonably well in both the new and used markets.

A year on from the infamous Volkswagen emissions scandal, Glass's has said that petrol and diesel VW values are now similar, suggesting that the buyers do not mind about the environmental impact as much as they care about the money in the back pockets.

Hybrid margins, meanwhile, are between 15-20% - lower than petrol cars and a little behind diesel vehicles, while pure EV margins are reaching up to 40% and up to 90 days to sell.

Glass's also said the used car market seems to be holding up well after the Brexit vote, with the number of vehicles sold at auction in July and August being ahead of the same months in 2015.

"Whilst the used car market appears to be responding well following the uncertainty that has surrounded Brexit, feedback from dealers suggests that demand in the new car market is weakening," said Jayson Whittington, chief car editor at Glass's. "It will be interesting to see how volumes end up in September. In particular, should retail deliveries fall compared to 2015, it could be very damaging for dealers and manufacturers alike who will be chasing stretched targets following the success experienced in 2015."

"September remains a financially critical month and, if they are indeed down, it should be expected that tactical registration activity will be prevalent, which may lead to further pressure on nearly new car values and possibly impede dealers' ability to purchase the stock that they would ideally like to have on the forecourt," he added.