Concerns around legislation and sell-on values are causing car-buyers to hold off on buying a diesel car, according to Close Brothers Motor Finance.
While the anti-diesel rhetoric has turned a number of people away from diesel cars, an estimated 4m drivers remain convinced it is the right option for them and will be opting for diesel car next (13%).
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Seán Kemple, director of sales at Close Brothers, commented: “Low-Co2 diesel cars were not long ago hailed as the best option for drivers. This was the fuel that cleverly managed to offer lower fuel consumption, exhaust emissions, and running costs for higher miles-per-gallon fuel economy.
“And then, all of a sudden, we went from one extreme to the other, with an over-simplified message from the Government effectively demonising all diesel cars. The UK has since fallen out of love with diesel.”
Global economic slowdown, political instability and confusion over fuel type have contributed to suffering car sales over the past two years. New diesel sales are down 19.3% in 2019.
Over a quarter of diesel drivers (27%) said they were holding off buying a car this year due to uncertainty caused by changing diesel legislation. The same proportion were put off by the uncertainty of the cost of owning a diesel car, while a third (33%) had concerns about the increasing cost of fuel.
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By GlobalDataIn addition, there were concerns from a third of diesel drivers (33%) that they would have to pay more tax for having a diesel car, while 19% feared they would not be able to sell their car or trade it in for a new one.
Meanwhile, half of motor dealers (52%) have experienced a noticeable increase in the number of customers wanting more support when considering purchasing a diesel car. A third (32%) have had to change stock to react to changes in the diesel market, with 37% reporting fewer diesel sales.
Kemple added: “Yet, the problems with an oversimplified message are made clear in these results. A diesel car may well be the right option – both economically and environmentally speaking – for some drivers, particularly those who regularly do long distances.
“Over 4m drivers remain convinced it is the best choice for them but are becoming increasingly unsure thanks to conflicting messages. Rather than providing impetus in the decision to buy a car, the Government’s message is in fact doing the opposite. Without clarification, we will continue to see car sales fall in light of so much uncertainty.”
