Diesel Implications and Value Trends
What's happening moving forward?

What's going on in the world of diesel engines? It would seem that governments throughout the world are taking action against them. I don't have an issue with the governments taking action to make the world a cleaner place
, the challenge comes for me when the ones tasked with it's management appear to look at the revenue streams
they can open, driving cold hard cash
into their pockets. What is needed in the UK is a carefully considered framework
, built in full, so that cities around the country can put the model into place for the good of everyone
. Rather than like in some countries who have taxation on clean new diesel engines (as well as old dirty ones)
, but no penalties for old dirty petrols
. If we ultimately want cleaner air
then lets do it the right way
rather than being a bully towards diesels
. It is after all a leading solution for many retail customers as well as businesses
throughout the UK. If the taxation rests on the shoulders of diesel engines
, small and medium business will have to consider the impact of this within their business model, especially the high mileage businesses
.
Another issue I have is the way in which the media portrays the diesel engine
as a whole. They're building in the nations mind a picture of doom and gloom from such a filthy block
. The reality
is that diesel engines are cleaner than ever
, they are cleaner today than petrol engines from just a handful of years ago. Air quality is improving
year on year. We have 70% less NOx levels to those we saw 30 years ago
, and this will continue to improve
as older engines come off the road. The media is a money making machine at heart, we all know that, but I feel as though they have a duty to at least provide it's viewers with honest, informed and correct information, this currently does not happen.
Let's face it the investment that manufactures drive into their euro 6 diesel blocks is phenomenal
and they are reducing the co2 levels all the time, so much so that it is still better value to run a diesel engine for a company car with the low CO2 and BIK rates
. There are 12 million diesel vehicles on the road today
and that has been driven by the government and economy. People are still buying them today and will do tomorrow and the day after...
So, what will happen moving forward
? Well...
- Scrappage scheme for diesels... maybe.
- Used car diesel prices to steepen their curve of depreciation
... for sure (it's already happening).
- Larger diesel cars impacted less from depreciation alterations ... I would think so.
- Legislation brought in for used diesel engines, especially euro 5... maybe.
- A used car market driven by leasing companies ... definitely.
- Diesel engine popularity decline ... most definitely.
We can already note a decline in diesel engines being registered . This shouldn't put you off from a company car point of view . The decline is driven mainly by the retail market and that some are switching to an alternate fuel solution . The demand for diesel is still there and standing strong. It will be around for years to come as it's a great solution vs the rest.
You really need to consider all of the above within your purchase route analysis and decision making rules , as it could have a costly impact on your business if not . If you would like any further advice on the above then simply get in touch with us via the form or at consult@yalsoncc.co.uk or on 01924 677577 .






