Reports of the demise of diesel appear to have been greatly exaggerated as the demonised fuel enjoyed double digit growth in wholesale volumes in June according to figures from the latest Cox Automotive Market Overview report.
Diesel wholesale experienced a 14% year-on-year increase in volumes, part of an overall increase in the mid-range (£10k to £20k) price bracket, despite continuing media negativity around diesel vehicles.
So despite the almost daily onslaught by Government, environmentalists and others hitching a ride on the ‘dirty diesel’ bandwagon, the reality in the used car market is one of continuing diesel defiance.
Prices remain stable across the range with the £30k to £40K and £40K to £50k bandings showing increases compared to this time last year, while other price bands held stable.
Diesels also continue to perform well on dealers forecourts, selling four days quicker than the same period last year (average 39 days), while petrol vehicles remained on forecourts two days longer.
The stability and marginal growth in wholesale volumes across the market has gone some way to dropping diesel down the list of potential headaches for dealers.
When asked, as part of the latest sentiment report, what the biggest commercial challenges for their business were likely to be in the second quarter of 2018, only 13% of the dealers polled sited the demonsation of diesel as a top priority.
While this was 5% up on the first half of 2018, diesel still lagged behind issues such as Brexit and achieving credible margin. It was also a long way off the 38% who highlighted acquiring the right stock as the biggest commercial challenge they faced in the next six months.
The strong performance of diesel is also replicated across wholesale volumes in general, with the £10k to £20K banding experiencing a particularly strong 16% increase, reflecting the demand for quality, mid-market vehicles.
Continuing the momentum in wholesale, the volume of vehicles sold through Dealer Auction’s lanes increased 19% year on year, while average sales price on the trade-to-trade online auction platform increased 11%, to £4,523.
Furthermore, in a very upbeat half way report for the first six months of the year, the average sold price also continues to increase, up 3% from £6,649 in May to £6,816 in June.
So overall the sector view is positive with the used car market remaining stable and healthy going forward.
Ready-to-retail cars remain in huge demand and continue to attract top prices and conversions, while there is less interest in basic models which need more reconditioning
As the dealer survey responses show, the acquisition of stock remains the biggest challenge as we head into the second half of 2018. The market outlook remains positive and upbeat and like the current hot spell of weather, seems likely to remain unchanged for the foreseeable future.
