Young used diesel car stock massively outstripping sales in the UK
The stock of used diesel cars in the UK during November was reasonably well balanced across all ages from 13 months old through to 72 months old but there is a significant stock issue for cars under 12 months old which varies by brand.
Used diesel cars aged between two to four years are responsible for the bulk of online business to consumer (B2C) used car sales, with much of that stock coming from ex-fleet vehicles. However, by November dealers were sitting on 74 days of market days supply (MDS) of used diesel cars aged six-12 months old.
Latest clean Euro-6 diesel engines and CAZ
These younger used diesel cars will all be fitted with the latest clean Euro-6 diesel engines and therefore should not be a problem for any car buyers wishing to use them in the emerging clean air zone (CAZs) regions springing up across the UK. They also meet the requirements for use in London’s Ultra Low Emission ZONE (ULEZ) but INDICATA data has already shown how the political and media spin in the UK is putting car buyers off both new and used diesel cars.
Sales and prices continue to rise
Despite the rhetoric against diesel both sales and prices of online B2C used diesel cars are rising. Sales increased by 3.5% to 392,676 in Q4 2018 whilst prices were around 1.3% higher than a year earlier. But putting that into context, online B2C used petrol car sales grew by 19.3% to 461,996 in Q4 2018 whilst used petrol car prices shot up 6.0%.
This means dealers may well have to consider how quickly and at what price they clear out these young used diesel cars before the market starts to take a downward turn. This issue is also not unique to the UK with other European countries having varying degrees of the same issue and with a variety of different brands.