Survey finds dip in diesel demand starting to hit used car market
06 August 2019
Author: Sean Keywood
Declining demand for diesel cars is starting to impact the used car market, according to NextGear Capital.
It says a survey of car dealers found almost a third reported experiencing a fall-off in demand for diesel stock, while a fifth expect demand to decrease more in the next six months compared to the first half of the year.
In response to these trends, 38% of dealers said they planned to buy less diesel stock, and almost a third plan to increase their stock of alternatively fuelled vehicles.
However, these views are no means unanimous, with around half of the dealers surveyed expecting demand for diesels to remain consistent, and therefore planning no changes to their buying strategy for the rest of the year.
NextGear Capital sales and marketing director Pam Halliday said: "Until recently the decline in demand for diesel in the new car market has been largely defied by the used car market.
"However, the latest sentiment survey results indicate that the used car market is now starting to catch-up. With the volume of diesel vehicles coming into the market diminishing and buyers switching to petrol or alternatively fuelled vehicles, it is inevitable to see such market adjustment.
"Despite the market decline, many dealers are adopting a 'business as usual' stance on diesel stock, while others are actively seeking to capitalise on the opportunities offered by alternatively fuelled vehicles.
"The challenge for those still retailing diesel is buying good stock at wholesale. Those dealers ready, and more importantly able, to buy from multiple sources and pay strong prices for good quality diesel stock will reap the most rewards."