Diesel residual values will rise on the back of dramatically falling new car sales, according to Autorola.

Diesels accounted for one in five used cars sold online by Autorola to dealers in Q2

The remarketing firm said used diesel demand and prices were “very strong” in Q2 and predicted that the market will eventually reach a tipping point where used diesels rise in price due to restricted supply.

Analysis of used cars sold via its MarketPlace online platform in Q2 reveals diesel prices rose by 0.7% (£130) from £17,332 in Q1 to £17,462 at 42 months and 30,967 miles in Q2 2024.

Diesels accounted for 19.6% of all used cars Autorola sold online during Q2, the second most popular powertrain after petrol which dominated sales at 63.6%. Hybrids accounted for 12.9% and EVs just 3.9%.

That’s in sharp contrast to new car sales, where latest SMMT data reveals diesel take-up plummeted 17.2% in June, holding just a 7.3% market share; only 0.1% above the 7.2% share held by plug-in hybrids.

“Diesel has been written off from all quarters as new car sales continue to fall, but in the used sector they accounted for one in five used cars sold to dealers online in Q2,” explained Jon Mitchell, director, Autorola UK.

“Demand has remained consistent since 2020, but at some point, we expect the market to reach a tipping point where prices rise due to new car sales falling for the past five years,” he added.

Autorola pricing data for Q2 shows used petrols rose 2.9% (£391) to £13,662 at 43 months and 25,528 miles while used hybrids fell 3.6% (£764) to £19,650 at 42 months and 30,967 miles. Used EVs rose in price by 9.1% (£1,626) to £19,480 at 26 months and 19,209 miles, but this was caused mainly by model mix rather than surging demand.

“Q2 has been a very positive quarter for used cars following a tough end to 2023. Demand and sales volumes were down compared with the same period in 2023, but the market has bounced back in 2024. We believe it will remain buoyant well into 2025,” said Mitchell.