New and used diesel cars could get a new lease of life following the Prime Minister’s extension to the ban on new ICE sales.

Cleaner models mean there’s still a future for diesel in fleet

Indicata’s latest Market Watch report saw used diesel car sales fall to a record low in August. Its figures reveal diesels up to four years old accounted for just 16.1% of cars last month, while used petrol sales rose to a 54.6% share and hybrids and BEVs comprised 22.5% and 6.6% respectively.

But UK group sales director Jon Mitchell expects sales of new and used diesel cars to rise now that the ICE ban has been extended to 2035.

“Diesel engines still offer the best combination of fuel economy and practicality, particularly with larger SUV and 4×4 owners.

“And with used diesel stocks falling in line with new car sales for a number of years we could see demand exceeding supply which will push up prices,” he added.

Indicata’s data also shows that used EV prices fell again in August, down by 1.4% points, which makes them 35.5% lower than in January 2022. The fall in prices continues to speed up sales. Indicata’s Market Days’ Supply (MDS) measurement – derived from dividing the currently available supply of cars by the average daily retail sales rate over the past 45 days – stands at just 45.7 days for used EVs, which is now the lowest in Europe.

“The demand for used EVs continues to rise on the back of falling prices and the MDS has fallen to the lowest in Europe. It will be interesting to see how the Prime Minister’s recent announcement impacts the demand for used EVs as consumers now have more time to make the switch to electric,” Mitchell added.

Rising demand for hybrid and electric cars is reflected in Indicata’s list of the top three fastest-selling used cars for August – the Toyota Prius, the BMW i3 and the VW ID.3. Meanwhile, the Ford Fiesta remains the UK’s top-selling used car, followed by the VW Golf and Mercedes A-Class.