Electric vehicles (EVs) continue to dominate headlines, with more motorists making the switch every year. Hybrid technology has also become increasingly popular as drivers look to reduce fuel costs and emissions.
Yet despite the electric revolution gathering pace, diesel vehicles have continued to perform surprisingly well in the used car market.
Discover more buying, selling and ownership advice here within our valuation guidance hub.
So why are diesel cars still in demand?
Diesel Demand Remained Strong
During 2022, industry reports suggested that around 20% of buyers intended to choose an electric vehicle for their next purchase, while more than a third planned to buy a hybrid.
On the surface, it appeared that electrification was accelerating rapidly.
However, auction data painted a different picture.
For example, Aston Barclay Motor Auctions reported that diesel vehicles accounted for approximately 43% of vehicles passing through its auctions, selling faster than electric vehicles and achieving modest increases in value during May 2022.
This raised an interesting question:
If electric vehicles represented the future, why were used diesel cars still proving so popular?
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Rising Living Costs Changed Buying Habits
One of the biggest influences on the used car market was the increase in household living costs.
Higher fuel prices and wider economic uncertainty encouraged many buyers to reduce their motoring costs by:
- Purchasing lower-value vehicles
- Choosing older models
- Accepting higher mileage
- Downsizing to smaller cars
Warranty provider WMS Group reported at the time that:
- Nearly two-thirds of buyers were purchasing older vehicles.
- 38% were choosing higher-mileage cars.
- 31% were moving to smaller vehicles.
As affordability became more important, diesel continued to appeal to many motorists because of its strong fuel economy on longer journeys.
Purchase Price Still Matters
Although electric vehicles offer lower running costs in many situations, the purchase price remained a significant barrier for many buyers.
During 2022:
- Used electric vehicles generally commanded much higher prices.
- Hybrid vehicles also carried a premium.
- Older diesel cars were often considerably cheaper to purchase.
For buyers working within tighter budgets, a well-maintained diesel could still represent excellent value.
Supply and Demand
Another factor supporting diesel values was supply.
With manufacturers gradually reducing diesel production ahead of the UK’s planned transition away from new petrol and diesel car sales, fewer new diesel vehicles were entering the market.
As existing diesel vehicles aged, the available used supply was expected to reduce over time.
Basic economics suggested that if demand remained relatively stable while supply declined, values could remain stronger than many had anticipated.
Are Diesel Cars Here to Stay?
Although electric vehicle registrations continue to increase, diesel vehicles are unlikely to disappear overnight.
Millions remain on UK roads today, particularly among motorists who:
- Regularly drive long motorway distances.
- Tow caravans or trailers.
- Require strong fuel efficiency.
- Need a lower purchase price than many EVs currently offer.
For these drivers, diesel can still make financial sense.
If you ever have a moment and forget you have diesel and put the wrong fuel in your car, don’t worry, it’s not the end of the world.
The Future of the Used Car Market
The used car market is increasingly diverse.
Buyers now have a choice between:
- Petrol
- Diesel
- Hybrid
- Plug-in hybrid
- Fully electric
Rather than one technology replacing another immediately, the market is likely to remain mixed for many years as buyers choose the option that best suits their budget, driving habits and charging availability.
While the long-term direction clearly points towards electrification, diesel vehicles are expected to remain an important part of the used car market for some time.
Final Thoughts
The transition to electric vehicles is well underway, but that doesn’t mean demand for diesel has disappeared.
Affordability, fuel economy and vehicle availability have all helped diesel maintain a strong position within the used market.
As the vehicle parc gradually changes, buyers will continue choosing the technology that best fits their individual circumstances rather than simply following wider market trends.
Thinking of Parting With Your Diesel or Electric Car?
Whether you drive a diesel, petrol, hybrid or electric vehicle, Jamjar makes it easy to compare offers from trusted UK buyers.
Thanks to our free online valuation tool, you can compare offers within seconds.