AM Online

Base residual values on diesels, says CAP

Diesels should be used as the benchmark for
residual values if the growth in the sector
continues to rise at its current pace, according
to price guide experts CAP.

Petrol is currently used as the benchmark to predict the future value of vehicles.

Diesel penetration rose to a record 46.1% in 2010, in part helped by growth of MPV and dual purpose (SUV) segments, which have a high diesel penetration, as well as the slowdown in petrol car sales post scrappage.

Wider availability of more fuel-efficient diesel-engined cars has increased appeal further, particularly within the fleet and business markets.

Mark Norman, CAP’s operational development manager, said: “It’s taken a long time, but over the seven years since the Government introduced carbon dioxide emissions based taxation the diesel market has been
ever increasing.

“So much so that diesel is now driving the market.”

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