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Car traders encountered 'little or no resistance to diesel' in March, says Cap HPI

Used cars

Demand for used diesel vehicles has remained strong in March with SUVs leading the charge, according to Cap HPI.

Values for many SUV diesel vehicles have either increased or stayed level, the used car data specialist claimed, adding that their petrol counterparts have seen decline.

Diesel variants of the Renault Kadjar, Renault Captur, Citroen C4 Cactus and Honda HR-V were among the strongest performers, it said.

Derren Martin, head of current valuations at Cap HPI, said: “Feedback from trade buyers is that there is little or no resistance from consumers to buying used diesel.

"Indeed, on average diesel values dropped by 0.7% in April’s Black Book live product, whereas petrol dropped by 0.9%. With over half the cars registered in 2015 and 2016 being diesel, it is important for values that this demand remains.”

Values of hybrids declined more than other fuel-types in April, meaning many hybrid models look expensive when compared to more traditional petrol or diesel vehicle in the used market.

The values of electric cars have been more mixed. Tesla Model S and Golf E values have increased, while the BMW i3 saw values drop by 3% during the month.

Martin added: “With uncertainty over new car registration volumes, many franchised dealers are focusing more on selling used vehicles and that is keeping the remarketing sector particularly competitive – during March and April that is more unusual than at other times of the year.

"Research completed by the Cap HPI black book editors reports that good percentages of cap were being achieved by leasing companies remarketing their vehicles through auction, with conversion rates also above where they would normally expect them to be in April.”

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