28 Feb 17

Diesel car values “dropping 10% to 20%”

Ansgar Klein

The talk of banning and taxing diesel cars is pushing down the value of both new and used diesels, warns a German car dealer association. 

“We are assuming prices are currently moving down by 10% to 20%”, says Ansgar Klein (pictured), Managing Director of the Bundesverband freier Kfz-Händler (BVfK), which represents around 900 German car dealers.

The association also criticised current and planned bans on diesel cars in city centres as political posturing and ineffective actionism that does little to improve air quality. Stuttgart has announced it will ban diesels that do not meet the Euro 6 emissions standards – which currently includes 90% of all diesels – on days with high air pollution. 

Other German cities are likely to follow, as the country attempts to conform to EU emissions norms. Worldwide, cities like Paris, Madrid, Athens and Mexico City have pledged to ban diesels by 2025.

According to the BVfK, the current public discourse against diesel is making consumers insecure about buying diesel cars, despite massive improvements in emissions in newer diesels. The insecurity is putting strong downward pressure on prices for both new and used diesel cars. 

Market analysis by industry institute CAR indeed shows that demand for diesel cars dropped to 44% of the market by October 2016 compared to almost 50% by the end of 2015. Its forecasts show that by 2018, diesels will account for only 40% of new car sales in Germany. UBS predicts that diesel sales will crash from 50% of the market to just 10% in Europe within the next 10 years, and ‘almost disappear’ globally. 

Klein fears the anti-diesel climate will cause massive economic damage, to the car trade as well as to trades that depend on their cars. He pleads for the negative publicity around diesel to stop, as a condition for a normalisation of the diesel market. 

Image: LinkedIn

Authored by: Frank Jacobs