Declining demand for diesel stock is starting to impact the used car market according to the latest NextGear Capital sentiment survey.
Almost a third of dealers surveyed reported experiencing a fall-off in demand for diesel stock.
A fifth expect demand to decrease more in the next six months compared to the first half of the year.
As a result, 38% of surveyed dealers plan to buy less diesel stock.
However, half still expect diesel demand to remain consistent and therefore will not change their diesel buying strategy this year.
Some dealers have turned to other avenues of stock, such as AFVs.
Recent NextGear Capital research revealed almost a third of dealers plan to increase their AFV numbers as they look to capitalise on a growing consumer market.
Pam Halliday, NextGear Capital’s sales and marketing director said: “Until recently the decline in demand for diesel in the new car market has been largely defied by the used car market.
“However, the latest sentiment survey results indicate that the used car market is now starting to catch-up. With the volume of diesel vehicles coming into the market diminishing and buyers switching to petrol or AFVs, it is inevitable to see such market adjustment.
“Despite the market decline, many dealers are adopting a ‘business as usual’ stance on diesel stock, while others are actively seeking to capitalise on the opportunities offered by AFV vehicles.
“The challenge for those still retailing diesel is buying good stock at wholesale. Those dealers ready, and more importantly able, to buy from multiple sources and pay strong prices for good quality diesel stock will reap the most rewards.”