Are you pondering the idea of selling your diesel vehicle? The decision to stick with diesel is becoming increasingly challenging for drivers in the UK.

Even if your car meets Euro 6 standards, its difficult to predict its future market value. Many motorists are contemplating transitioning to hybrid, petrol, or electric alternatives. 

Explore this guide for insights on the current value of your diesel car, the potential for rising costs leading up to the 2035 electric transition, diesel-related taxes and fees, and why, despite negative outlooks, there are valid reasons to hold onto your diesel vehicle instead of hastily selling it.

Should you sell your diesel vehicle?

Consequently, diesel sales surged, accounting for nearly half of all new car registrations annually. However, following new pollution studies and emission scandals, diesel engines are now facing tax hikes and urban emission fees. 

Sales plummeted further in London with the introduction of ULEZ and its subsequent expansion, mirrioring trends in other Clean Air Zones (CAZ) and Low Emission Zones (LEZ) across the UK. 

Despite the challenges, is investing in a new or used diesel car still prudent? And if you already own one, is it a good time to sell, especially if you reside in or near London?   

It’s essential to check your car’s ULEZ compliance status before deciding. Despite the introduction of the diesel ‘toxin tax’ and CAZs, there are still benefits to buying or owning a diesel vehicle.

They typically offer better MPG and have longer lifespans compares to petrol engines. If you’re contemplating selling a diesel car, our guide can assist you in making an informed decision.

When are diesel cars useful?

• Long Journeys : Diesel engines remain cost-effective for long distance and high annual mileages compared to petrol counterparts. If you typically cover 15,000 miles or more annually, diesel can help reduce expenses.
• Rural areas : The focus on diesel taces in urban regions, notably London, makes older diesel vehicles a risky investment. However, newer diesel cars meeting Euro 6 standards are mostly exempt from current taxes, although this could change. Regular urban driving can also affect the diesel particulate filter.
• Larger vehicles : Diesel engines are still practical for purchasing people carriers or SUVs. Their torque and power at low revs significantly improve fuel efficiency, and they are easier to drive as they don’t require high revs to make progress, unlike petrol versions.
• Towing : Diesel engines are advantageous for towing caravans, trailers, or other loads due to their characteristics, especially in larger vehicles.

Regarding Euro 6 emission standards, they are mandatory for new diesel cars. However, for used cars, it’s more complex. Euro 6 regulations came into effect on September 1st, 2014, but were implemented for new vehicle registrations starting from September 1st, 2015.

There’s a loophole where cars produced and dispatched before June 1st, 2015, could still be sold until September 1st, 2016. Essentially, diesel cars registered from September 1st, 2016, comply with Euro 6 emission laws.

For vehicles registered between 2014 and 2016, it’s advisable to verify with the manufacturer for certainty.

When is the best time to sell my diesel car?

As a current diesel car owner, the retail value is undoubtedly crucial. When selling your car, you aim to secure the best price with minimal hassle.

Regarding car valuations, second-hand diesel prices have indeed decreased, but they’ve shown some improvement recently.

The positive aspect is that diesel car values have generally experienced a slight decline rather than a drastic drop, unlike the rush towards petrol cars. Especially for larger diesel engines, prices are holding up well due to their superior fuel efficiency.

So, if you own a larger luxury vehicle, you shouldn’t face significant losses when selling.

For owners of older or classic diesel cars, such as the Mercedes 300TD, the question arises : is it better to sell now or hold onto it?

On the other hand, owners of smaller diesel cars considering selling might find some encouraging news. While values have decreased for these models, there’s still demand from buyers less concerned about anti-pollution regulations and more focused on getting a good deal. Hence, your car should sell relatively quickly.

Alternatively, you could explore upgrading through a manufacturer’s diesel car scrappage scheme. If your car only meets Euro 4 standards or earlier, you could save a substantial amount on a new model. Several manufacturers have previously offered discounts of up to around £8000 when trading in eligible vehicles, typically based on age rather than condition.

Or you could opt to keep your diesel car for a little while longer. There’s currently no evidence suggesting diesel fuel or parts supply will become scarce for many years. Therefore, if you’re unlikely to be affected by various anti-pollution measures in major cities, you can take some time to save up for your next car.

Toxin Tax

Various measures are being implemented to discourage the use of diesel engines in favour of  zero-emission vehicles, with urban anti-pollution measures, such as the ‘diesel toxin tax’ receiving the most attention.

These charges are a response to the premature deaths in the UK attributed to high levels of Nitrogen Dioxide (NO2) in the air, primarily emitted by diesel engines. The European Commission has warned the UK to reduce NO2 levels due to urban pollution.

London initially introduced the ‘diesel toxin tax’ several years ago, which has now been incorporated into the ULEZ since 2019. Cities and regions across the UK, led by Greater London’s ULEZ, have intensified charges for all vehicles, particularly those with engines not meeting Euro 4 (petrol) and Euro 6 (diesel) standards.

While some of these charges apply to passenger cars, almost all CAZ and LEZ in the country levy charges on van drivers, the majority of which are diesel vehicles. Currently, most cities are prioritising the reduction of heavy good vehicles and the enhancement of public transport.

However, with the impending 2035 electric transition and growing concerns about air pollution. it’s evident that diesel engines will eventually face stringent restrictions, along with other polluting engines. Therefore, if you’re considering selling a diesel car, it’s essential to assess how frequently you travel to major cities.

Occasional visits may incur negligible additional charges, but daily commuting in and around urban area could lead to substantial costs accumulating over time.