British Car Auctions (BCA) has released new information examining the price performance of petrol, diesel and alternative fuel vehicles. The results show a rising demand for alternative fuels.
According to an analysis of data on volume product from both the fleet and lease sector, volumes of alternative fuelled vehicles and hybrid cars remain small, but they are on the increase.
It found that the price differential between diesel and petrol has remained consistent throughout 2008, although diesels, on average, sell for around £1,000 more. The price of hybrid/LPG models is more difficult to assess as fewer of these cars reach auction. However, their performance compared with CAP Clean guides suggests growing demand.
LPG vehicles in particular have performed well – often greatly exceeding their guide values. June in particular was an exceptional month with sales averaging 115 per cent of CAP Clean figures. By contrast, demand for petrol and diesel models is slowly declining with diesel 3.5 points down from January-June and petrol three points down over the same period.
BCA communications director Tony Gannon believes the growth of interest in alternative fuels can be primarily attributed to changing economic conditions.
“There is a groundswell of interest in alternative fuelled vehicles and this is reflected in the strong performance being recorded against guide values in a market that is otherwise seeing values in decline,” he said.
“There can be little doubt this is being driven by the credit crunch and rising fuel prices which are persuading more motorists to try LPG or hybrid electric, perhaps for the first time.”
