Diesel Cars – Should You Buy Or Sell?
Are you wondering whether you should buy or sell a diesel car? It’s a growing dilemma for UK motorists in 2018.
Buying and selling diesel cars explained:
- Should I buy a diesel car?
- When does a diesel car make sense?
- Should I sell my diesel car?
- What is the diesel toxin tax?
- Will diesel cars be banned?
- Diesel taxes and charges
- Making a final decision
For many years, diesel vehicles were promoted by the UK Government as being more efficient for long journeys – and better for the environment. As a result, diesel sales grew and now account for almost half of all new cars registered in the UK every year.
But after new pollution studies and emissions scandals, diesel engines are now being targeted by tax increases and urban emission charges.
So can a new or second-hand diesel car still be a wise investment? And if you currently own a diesel vehicle, is it a good time to sell?
There are definitely still benefits to buying or owning a diesel car, despite the introduction of the diesel ‘toxin tax’. And if you’re considering selling your vehicle, the news may not be as bad as you might have thought.
So whether you’re looking to buy or sell a diesel car, our guide should help you make the right decision.
Should I buy a diesel car?
Is it still worth buying a diesel in 2018? Depending on the kind of vehicle you are looking at and your requirements, the answer could still be “yes”.
Choosing a fuel type for your next car really comes down to your individual circumstances. For many years, there was a road tax discount for diesel engines partly based on low-CO2 emissions. It was also due to better fuel economy compared to petrol alternatives.
Modern diesel engines, for example those in the latest Euro 6 compliant models, can deliver around 20% less CO2 than petrol, and give around 20% better fuel efficiency than other internal combustion engines.
That being said, there’s now a greater focus on air pollution – particularly in cities. Diesels are being targeted due to high soot, nitrogen oxide, and nitrogen dioxide emissions that are bad for our health when inhaled.
Current cars will meet the Euro 6 and tougher Euro 7 rules which are due to come into full force. Plus, modern technology solutions, including diesel particulate filters, are designed to prevent these toxic particulates from entering the air we breathe!
All of the work that has been to keep diesel safe was undermined by the emissions or ‘dieselgate’ scandal that occurred in 2015. It was discovered that Volkswagen was cheating the particulate test (ECU) to give artificially low results.
So, why should you still consider buying a diesel car? Well, it can still make financial sense in some circumstances, even after the taxes were increased in April 2018 for new vehicle registrations.
When a diesel car makes sense:
- Long journeys:
Diesel engines still save you money on long journeys and big annual mileages versus petrol equivalents. If you generally cover 15,000 miles or more in a year, then you can definitely cut costs.
- Rural locations:
The focus on diesel taxation is in urban areas, particularly London means that older diesels won’t make sense. New diesel cars which meet Euro 6 standards or above are largely exempt from new taxes at the moment, but this may change in the future. Regular urban driving can also clog the diesel particulate filter.
- Larger vehicles:
Diesel engines still make sense if you want to buy a people carrier, or an SUV. The torque and power of a diesel engine low in the rev range makes big differences to fuel economy. And it’s also easier to drive as – unlike with petrol versions – you don’t need to rev the engine hard to start making progress.
If you plan on regularly towing a caravan, trailer or any other type of load, then a diesel engine will benefit you for the same reasons as it does in larger vehicles.
The Euro 6 emission guidelines are required by law for new diesel cars. For second-hand cars, it’s slightly more complicated. The Euro 6 law came into force from 1st September 2014, but it was applied to new vehicle registrations from September 1st, 2015.
However, a bit of a loophole means that individual cars on sale and dispatched from the manufacturer before 1st June 2015 could still be sold until September 1st 2016.
What that essentially means is that if you buy a diesel car registered from September 1st 2016, it legally meets Euro 6 emission laws. If the vehicle was registered from 2014 to 2016, then you should check with the manufacturer to be certain!
Before that date, most cars won’t meet the latest emissions laws, although there are a few exceptions. And that means you’re more likely to be charged or even banned in cities across the UK and Europe in the future.
The future of diesel engines and taxes is explained in more detail below. But from 2019 the Ultra-Low Emission Zone in London will impose a £12.50 daily fee on any non-Euro 6 diesel vehicles and several other cities are likely to do for the same for their own Clean Air Zones.
This will replace the current T-charge of £10 a day for older cars that don’t meet certain emissions standards. You can find out which cars are affected here.
Should I sell my used diesel car?
As a current or future owner of a diesel car, the resale value is obviously important. When it comes to selling your car, you want to get the best price as easily as possible.
The good news is that diesel car values have generally fallen slightly, rather than collapsed as the stampede to petrol cars has receded. And prices are holding particularly well for larger diesel motors – still in demand due to their better fuel economy. So if you’ve got a bigger, luxury vehicle, then you shouldn’t lose out if you’re planning to sell.
That leaves the owners of smaller diesel-engined cars who are considering selling. Although values have certainly fallen for those models, there’s still some positive news. Lower prices are still appealing to plenty of buyers less concerned with anti-pollution regulations than getting a good deal. So your car should sell quickly!
The alternative is upgrading via one of the manufacturer diesel car scrappage schemes. If your car is old enough to only meet Euro 4 emissions standards or earlier, you could save thousands on a new model.
Various manufacturers have offered up to around £8,000 from the price of a new car when you trade-in an eligible vehicle. And the offer is normally based on age rather than the condition.
Alternatively, you could hang on to your diesel car for a little longer. There’s no evidence that diesel fuel, or the supply of parts, will be harder to find for many years. So if you’re not likely to be impacted by various anti-pollution measures in larger cities, you can spend a little more time saving for your next car.
What is the diesel Toxin Tax?
There are various measures being introduced to encourage people away from diesel engines, and ultimately into zero emission vehicles. But it’s the urban anti-pollution measures known as the ‘diesel toxin tax’ that have become most widely publicised.
The charges are a response to the premature deaths in the UK occurring from high levels of Nitrogen Dioxide (NO2) in the air. Diesel engines are the primary source. Urban pollution has led to the UK being warned by the European Commission to reduce the levels of NO2.
So cities and areas across the UK, led by Greater London, will be ramping up charges for all vehicles from 2019. And older diesel models will be the hardest hit.
From 23rd October 2017 a new toxicity charge applied to vehicles in the same area as the London congestion zone. The £10 fee is in addition to the £11.50 congestion charge, and applied to all pre Euro 4 emission standard vehicles. Anything from motorcycles to HGVs is covered. And it runs from 7am to 6pm, Monday to Friday.
But in April 2019 it will become an Ultra-Low Emission Zone. It will run 24 hours a day, seven days a week, and while petrol vehicles still only need to meet Euro 4 standards, diesel cars and vans will have to meet Euro 6 regulations to be exempt. The charge will also be slightly higher at £12.50.
And other cities throughout the UK are following the approach of London. In England, several cities are due to introduce Clean Air Zones by 2020.
Leeds will tax lorries, buses and taxis at first. But the details for Birmingham, Derby, Nottingham and Southampton are still to be finalised.
In Scotland, low emission zones are proposed for Aberdeen, Dundee, Edinburgh and Glasgow.
At the moment, most cities are focusing on heavy goods vehicles and public transport. But any additional charges or other areas of the country will probably standardise around the Euro 6 emissions standard for cars.
So if you’re looking to buy or sell a diesel car, it’s important to consider how often you visit major cities. If it’s once or twice a year, then the additional charges will be negligible. But if you’re commuting every day, the costs will add up unless you buy a Euro 6 compliant diesel car.
Will diesel cars be banned?
Various countries, including the UK, have made pledges to phase out all internal combustion engines from sale in the next few decades. But it’s extremely unlikely that diesel cars will be banned outright in the foreseeable future.
Demand for new and second-hand diesel cars may have fallen. And new registrations may have dropped by almost a quarter for new diesel cars from 2017 to 2018. But the huge numbers currently in use means a ban would be unworkable and lead to huge outcry for many years to come.
It also means that the demand for diesel fuel will continue, which is good news for owners of both cars and oil refineries. Changing to any alternative fuel sources will continue to be gradual over the next few years.
What may happen in the short term is increasingly limited access to cities and other urban areas for older diesel cars. Paris already bans pre-2001 diesel cars from the city centre on weekdays between 8am and 8pm. That will switch to pre-2005 diesels in 2019.
And diesel cars are set to be outlawed entirely from the centre of Paris from 2024, followed by petrol in 2030.
In total there are around 200 low emission zones currently operating across Europe. The result is that a diesel ban is unlikely to be needed. If diesel cars do ever disappear from the roads, it will be due to a drop in consumer demand.
Some manufacturers have stopped the supply of diesel engines to the UK market. Or removed them from their car ranges, including Suzuki, Porsche and Toyota. And many other car makers are pledging to phase out diesel and petrol-only cars in favour of hybrid and electric vehicles.
With modern diesel engines meeting ever-tougher environmental rules, they’re likely to continue until the point that electric cars make more sense for the majority of buyers, rather than ever being subject to an outright ban.
Diesel Taxes And Charges
After looking in detail at the Diesel Toxin Tax applied to city travel, what other taxes and charges apply? It’s important we cover this as you’ll need to factor in all the costs before you buy or sell a diesel car.
The first is an increase in the first year Vehicle Excise Duty (or car tax) for diesels. This has been increased by up to £520 depending on which CO2 emission band your car falls into. The rise in costs is concentrated on the five heaviest polluting groups.
The biggest increase is for cars emitting between 191 and 225g/km of CO2, as the total cost has now risen to £1760.
The company car tax rate applied to diesel vehicles has also increased, from 3% to 4%. The exact increase will depend on the value of your car, its CO2 emissions and the personal tax rate you pay. So as with a private car, you’ll need to decide if the benefits of a diesel engine outweigh the increased tax cost.
Diesel owners face one final cost for city centre life in addition to the tax to enter urban areas. But this time it’s increased parking charges.
Councils in Westminster and Islington in London have introduced higher parking fees for diesel vehicles. And an increase in costs for parking permits has also been proposed in Edinburgh.
Westminster has introduced trials with a 50% surcharge for pre-2015 diesel vehicles, raising the highest costs in the West End from £4.90 to £7.35 per hour.
Meanwhile in Islington, the additional cost applies to all diesel cars, and increases parking fees by £2 per hour.
Finally in Scotland, permit holders in Edinburgh will pay an additional £40 charge if they buy a new diesel car.
So should you buy or sell a diesel car?
There are now more costs and complications to take into account with diesel than ever before, but it’s not quite game over for diesel quite yet.
There are still many cases in which a diesel engine makes more financial sense than swapping to petrol or alternative power sources. Modern emission laws will continue to reduce the impact on health and the environment.
Meanwhile there’s no need to panic if you currently own a diesel car and might be thinking of selling. Larger, more expensive vehicles are still attracting lots of buyers. And smaller-engined examples don’t need to be scrapped yet unless you’re planning on driving into central London on a daily basis. So you have time to plan ahead and sell your car at the best time.