UK fuel prices shift used car demand toward hybrids

Rising fuel prices in the UK are shifting consumer demand in the used car market. According to Solera cap hpi, diesel vehicle values fell by 0.6%, marking the fifth consecutive month of decline for the fuel type. Diesel prices have reached approximately 195p per litre, significantly higher than petrol.

In contrast, hybrid vehicle values rose by 0.5%, and battery electric vehicles (BEVs) saw a 0.3% increase. While the wholesale market has seen a 50% increase in BEV supply compared to the previous year, values have remained relatively stable as buyers absorb the extra stock.

Overall, average used car values fell by 0.3% for vehicles at three years and 60,000 miles. The RAC has cautioned that diesel prices could potentially exceed £2 per litre if ongoing supply issues persist.