The September Market Report from Auto Trader, the UK’s largest marketplace for new and used cars, revealed the full extent of the impact the debate on fuel has had on consumer buying/selling behaviour and retail prices for used cars.
In contrast to reports that average used diesel car prices have fallen in recent months, Auto Trader revealed that average diesel used car prices are in fact increasing.
Diesel average price increases have been slowing in 2017, but August bucked this trend as increases returned to growth.
The average price for a used diesel car rose by 6% (year-on-year) in August, showing an underlying like-for-like price increase of 2%, which had doubled from July.
Consumer appetite for used diesel cars hasn’t waned either.
Auto Trader’s Market Report reveals that despite experiencing a steady decline which can be attributed to the negative coverage surrounding diesel engines, searches for diesel vehicles increased from May to August this year, and more consumers still search for diesel than any other fuel type (55%).
The insight obtained from Auto Trader’s marketplace mirrors the transactional data of the used car market, which was up a modest 1.3% from January to June this year1, following a record-breaking year for used car transactions in 2016.
The sustained desirability for diesel cars amongst consumers was also evident with cars sellers.
Of c.10,000 motorists that were surveyed whilst advertising their car for sale on Auto Trader during July and August, 47% of diesel owners said they were planning to buy another diesel engine for their next car, and only 10% said that the recent debate on diesel had influenced their decision to sell.
Studying over 60,000 vehicles advertised for private sale on Auto Trader during August, the proportion of private diesel adverts rose by only 0.3% year-on-year, suggesting that there is no significant increase in motorists selling their diesel cars and that motorists are generally unmoved by the diesel debate or the Government’s 2040 announcement.
However, the Report does highlight one key impact that the diesel debate has had on consumer behaviour, and that is increased confusion and anxiety on what these reported developments mean for motorists and the cars they own.
Almost half of car buyers (49%) said that the news on fuel types over the last year had made the car buying process more challenging, and as a result, 35% admit they simply aren’t aware of the current pros and cons that the varied fuel types have to offer.
Nathan Coe, Auto Trader COO said “This sustained debate on fuel is a by-product of a big change in the industry, as car manufacturers, who share the same goals as the Government in improving air quality, make great strides to deliver cleaner, safer and more efficient cars every day.
“It might be tempting to focus on the negatives during periods of such change, but it’s crucial that the centre of the debate focusses on clearly landing the benefits and value of this change to motorists, rather than further energizing a narrative that stigmatises cars and threatens to penalise motorists.”
Analysing the road to 2040 and the key barriers for motorists when considering electric cars, Auto Trader’s Market Report revealed that upfront cost and infrastructure were two of the biggest concerns for motorists, with 49% and 48% agreeing they wouldn’t buy and electric vehicle due to these reasons respectively.
However, the Report also reveals a big difference between the perception and the reality with many of these barriers, highlighting a need for a greater focus and investment on educating consumers on the benefits and capabilities of electric vehicles.
Coe adds, “So far this debate has been misleading for many motorists and unhelpful for the automotive industry at large.
“By persisting the current debate, we run the risk of further confusing and alarming consumers which can affect car buying confidence, lead to ‘kneejerk’ behaviour and distract us from the most important focus of all, which is improving the cars on UK roads and our health as a result.”