Glass’s is forecasting a steady market for used diesel cars in 2018.
The forecast is in sharp contrast to the new car market where diesel sales fell 17.1% in 2017 and aare expected to fall again in 2018.
“Unlike in the new market, diesel cars are expected to hold up both in terms of values and volumes of cars sold,” it said in its predictions for 2018.
Glass’s pointed out that tax penalties on buying new diesels do not apply to used and their superior fuel economy will be a big draw for buyers.
“Diesels made up the majority of used car volumes last year, particularly, if unsurprisingly, in auctions from diesel-dominated fleets. Higher mileage diesel models of luxury marques have been particularly good value at auction.
“We expect the used market to be boosted as cash-strapped buyers switch away from purchasing new cars.”
Last week Glass’s made a forecast that used cars would be the king for dealers throughout 2018 as new car sales continued to decline from record highs.
Glass’s forecasts for 2018
- Used petrol cars, particularly smaller hatchbacks, will do well as buyers look for economy driving
- Higher mileage cars will hold their price better in 2018 as they become a more popular choice for cost-conscious buyers
- Auction houses report strong demand for cars in the super-mini up to lower-medium categories at prices from £6,000 to £7,000
- Dealers have been buying more smaller petrol cars and prices are rising due to demand, squeezing margins
- There are unresolved questions over the resale value of some first generation electric cars due to the fact that their batteries are leased by the first purchaser and do not “belong” to the car
- Glass’s expects manufacturers to address this issue during the year