No need to worry over the value of diesel vehicles
According to the Vehicle Remarketing Association (VRA), recent fears over diesel vehicles dropping in value are unnecessary, and the industry ought to ‘remain calm’ regarding the issue.
Speaking on the matter, VRA chair Glenn Sturley said: “There is a lot of noise going on around diesel, which is causing some people to speculate on an unexpected decline in demand, but the picture is much more complex and less worrying.”
Talking about fears over such a reality coming to pass, he pointed out the vagaries that such mass hysteria fails to take account of, such as there being no single ‘diesel’ model to begin with, but rather a variety of Euro 4, 5, and 6 vehicles, all with different prospects.
Admitting that Euro 4 vehicles may well be affected by clean air legislation, he nonetheless pointed out that the majority of these cars are already aged, with most falling into ‘banger’ territory. A further loss in value should therefore have little impact.
On the other side of the coin, he concluded that Euro 6 vehicles are very unlikely to be affected by the new rules, with the vast majority meeting the latest emissions regulations, giving buyers no real reason to find them any less desirable than their alternatives.
Indeed, although he explained that there has been a minor fall in the trade value of newer diesel models, he also pointed out that this has not had any real effect on the retail market, with all of the discussion surrounding the issue seemingly having exaggerated its effect.
As Mr Sturley elucidated: “The fact is that car buying habits usually take years to gain momentum, and also take years to fall away. There are many, many people who see themselves as diesel buyers, and they will not just change overnight.
“There may be some specific instances that have a localised effect, such as where different cities introduce clean air tariffs that affect diesels over the next couple of years, but these are only likely to hit the oldest models.”
The takeaway from the insights of such an expert are simple: the matters surrounding diesel emissions and clear air legislation has been blown out of all proportion, and the motoring industry and all those it impacts have little to worry about.