Diesel boom fuels price surge

21st October 2007

That’s the verdict from a leading UK auction house. The latest figures from Manheim show the average price of an ex-fleet model in August was £444 higher than for the same period in 2006. But the data hides a difference in fortunes for diesel and petrol cars.

Oil-burners are more common than ever before among ex-fleet vehicles, and now, they account for 48 per cent of pre-owned motors on offer. How­ever, don’t expect your next second-hand diesel to be any cheaper – as increased second-hand supply is not reducing resale values.

A spokesman for the auction chain said: “The difference in availability
between ex-fleet petrol and diesel models is really small. But, contrary to some reports, prices are holding up well. The key reference point is that, in overall terms, diesels are averaging 38 per cent of their cost new, while petrol cars are selling for 33 per cent of their original price.”

According to Manheim’s figures, the ex-fleet derv vehicles reaching its sales are typically seven months younger than their petrol equivalents. However, they usually arrive with a higher mileage on the clock – on average 20,000 miles more than their petrol counterparts. “This confirms the view that demand for used diesels is keeping pace with the additional sup­ply which is coming to the market,” added the representative.

So, while private buyers are likely to find a greater choice of diesels on used forecourts in the months ahead, don’t expect prices to come down as a result. Rising petrol costs are clearly causing many motorists to take the economical option.