Used car PCPs could play a crucial role in maintaining demand for diesel cars if the current backlash against the fuel type continues, according to iVendi.
Chief executive James Tew (pictured) explained that one of the key issues now surrounding diesel was consumer worry that a vehicle’s future value may be hit by changes in market sentiment or even legislation – and that a PCP removed this concern.
“While it is important to keep the issue in perspective, the fact that new car diesel sales fell 20% last month is probably a definite indicator of a long term trend that will see a general reduction in preference for diesels,” said Tew.
“This will inevitably feed through into the used car sector and, in fact, there is anecdotal evidence that this is starting to happen in a fairly low-key manner.
“It does seem inevitable that sentiment against diesel will grow and the market should move to reassure buyers that they remain a highly viable choice. Used car PCPs are one way of doing this. They take the potential uncertainty out of a diesel purchase by guaranteeing the future residual value of the car being bought.”
According to Tew, iVendi would be closely monitoring the overall trends covering diesel cars to look at changes in how they were being financed.
“We are ideally placed to see any changes that are occurring through the motor finance queries being made every day through our platform. Diesel, we believe, is currently one of the most interesting parts of the used car sector and we will be looking at any changes in finance method or terms.”
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