NEWS

French used car buyers paying a premium for petrol

Written by Dean Bowkett in category 
February 8, 2019

 

Diesel cars are continuing to be priced, on average, at a premium in the German market according to the analysis from INDICATA. This comes despite online business to consumer (B2C) used diesel car sales seeing marketshare erode in favour of petrol cars and total sales falling in absolute terms.

Whilst market day supply (MDS) for diesel cars was higher than for petrol in Germany for the first half of 2018 dealers seemed to take steps to change it with used diesel cars running at an average 2.2 days lower than petrol cars from June to December 2018.

But diesel prices in Germany have started to ease back and are now at their lowest level since July 2018. Meanwhile, average online B2C used petrol car prices have been steadily increasing and by December 2018 were at a 12-month high of €20,972.

Italian diesel demand remains strong
In Italy demand for diesel remains strong with used diesel car sales still well ahead of used petrol cars but it is in online B2C used petrol cars where prices are rising the fastest. MDS in Italy saw used diesel cars hit 80.39 days in December 2018 compared to just 72.24 days for petrol. This was a key factor in the increase in used petrol prices and also resulted in the premium for diesel reducing to €950 by the end of 2018.

French market changing
The used car market in France may still be dominated by used diesel cars but the gap between the MDS of petrol cars (54.31 days) compared to diesel cars (72.55 days) shows that the market is changing. With such a difference in MDS it is not surprising that the average online B2C used petrol car prices are now showing a premium over used diesel cars.

Even in the J-segment, which is the term used by INDICATA for SUVs, INDICATA’s price index shows that average online B2C used diesel car prices have fallen in 2018 whilst used petrol car prices have risen.

The Paris ban on pre-2005 diesel cars entering the city, along with the proposed 2024 ban on all diesel cars is the perfect example of why we are seeing such a strong increase in the price of used petrol cars in France and why this shows little sign of changing anytime soon.

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