Dealers react as dip in diesel demand hits used car market
Declining demand for diesel stock is starting to impact the used car market according to the latest NextGear Capital sentiment survey.
Almost a third of dealers surveyed reported experiencing a fall-off in demand for diesel stock, while a fifth expect demand to decrease more in the next six months compared to the first half of the year.
Faced with such a decline, 38% of those spoken to plan to buy less diesel.
However, despite the reduced demand dealers aren’t about to completely put the brake on diesel sales. Around half of the dealers surveyed expect demand to remain consistent and as a result plan no change to their diesel buying strategy for the rest of 2019.
For some dealers, the decline in diesel has led them to utilise other avenues of stock. Recent NextGear Capital research revealed almost a third of dealers plan to increase their Alternatively Fuelled Vehicle (AFV) numbers as they look to capitalise on a growing consumer market.
Pam Halliday, NextGear Capital’s sales and marketing director comments: "Until recently the decline in demand for diesel in the new car market has been largely defined by the used car market.
"However, the latest sentiment survey results indicate that the used car market is now starting to catch-up. With the volume of diesel vehicles coming into the market diminishing and buyers switching to petrol or AFVs, it is inevitable to see such market adjustment.
"Despite the market decline, many dealers are adopting a 'business as usual' stance on diesel stock, while others are actively seeking to capitalise on the opportunities offered by AFV vehicles.
"The challenge for those still retailing diesel is buying good stock at wholesale. Those dealers ready, and more importantly able, to buy from multiple sources and pay strong prices for good quality diesel stock will reap the most rewards."