As the price of a barrel of oil hit a record high of $49 a barrel last week, a new survey from vehicle remarketing solutions has shown that 92 per cent of dealers think residual values for diesel vehicles will remain strong for the next two years.

Commenting on the survey Mark Winch, commercial director of vehicle remarketing solutions says: “The increasing price of oil is driving demand for diesel vehicles, which are becoming the engine of choice for private and fleet motorists alike. We are continuing to see diesel vehicles performing particularly well, especially premium brands, and this survey supports our belief that this trend will continue.”

“The basic laws of supply and demand will remain king and we are seeing ever increasing demand for the latest diesel versions. The right models in the right sector as a diesel derivative continue to sell for a premium over their petrol equivalents; we predict this will continue to be the case, although the amount of this premium will differ wildly as the consumer is presented with more and more options.”

The telephone survey was conducted with 70 dealers between August 2, 2004 and August 9, 2004.