Cost of used petrol cars rise 10% as diesels dive

THE cost of second-hand petrol cars has risen 10 per cent in the past year while the growing backlash against diesels knocked hundreds of pounds off their value.

Analysis yesterday revealed that owners of petrol- engined Fords are the biggest winners from what the motoring industry has called ‘anti-diesel hysteria’ – their average second-hand value jumped 11.7 per cent, or £912.

Older diesel cars have been blamed in a string of health warnings for increasing the risk of respiratory problems by pumping out dangerous levels of toxic nitrogen oxides, which has seen the Government slap road tax rises on them in a bid to dissuade buyers. It has already led to a dramatic decline in sales of new, cleaner diesel cars.

But at the same time, the crackdown has inflated the value of secondhand petrol cars as demand rises.

The figures, based on analysis of valuations of more than 30,000 vehicles less than five years old during 2017, show that the average price of a second-hand petrol car surged 9.4 per cent, from £8,916 to £9,754 – an average rise of £838.

The average price of a diesel car has fallen 5 per cent, from £14,339 to £13,617, or more than £700.

Alex Buttle, director of car buying comparison website Motorway, which carried out the research, said: ‘Last year was a year to forget for diesel car owners as the Government demonised both old and new diesel cars. All of this negative sentiment has had a major impact on the value of used diesel vehicles.’ The flip side of all this, however, is that there are plenty of secondhand bargains to be had for those who still want to buy a diesel.

While sales of new diesels have collapsed, latest industry figures from the Society of Motor Manufacturers and Traders show that second-hand diesel sales have risen more than 4 per cent over the past year. Some 2.5million used diesel cars changed hands in the first nine months of last year.

But Mr Buttle said diesel owners waiting to sell their cars in the hope they will bounce back in value are likely to be disappointed. He added: ‘It would now take a miracle for diesel car values to rise from the ashes and regain lost ground.’

Emissions of nitrogen oxides have been linked to more than 40,000 deaths a year in the UK. Local councils across the country – under pressure from the Government to improve air quality – are considering imposing extra charges in town centres on drivers of cars which emit higher levels, which will hit diesel drivers the hardest.

And despite the negative publicity, earlier this week experts at What Car? crowned the diesel Volvo XC40 with their highest honour, naming it Car of the Year and noting that it emits less poisonous nitrogen oxides than many petrol engines.

The car industry argues that diesels remain the cheapest, most fuel efficient and environmentally friendly option for motorists who drive longer distances.

Fears are mounting over the future of thousands of car dealerships after the number reporting ‘significant’ financial troubles at the end of 2017 jumped 35 per cent compared with a year earlier.

‘Negative sentiment’