Diesel Cars in the UK: To Sell or Not to Sell?

The Diesel Dilemma: Should You Sell Your Diesel Car in the UK?

The question of whether to sell your diesel car in the UK is a growing concern for many motorists. Even if your vehicle adheres to the stringent Euro 6 emissions standards, navigating the current market and anticipating future changes can feel like a complex puzzle. With the UK's commitment to phasing out new petrol and diesel car sales by 2035, and the increasing prevalence of low-emission zones and urban charges, many drivers are contemplating a switch to hybrid, petrol, or electric alternatives. This guide aims to provide clarity on the current value of diesel cars, the potential for rising costs, diesel-specific taxes, and importantly, the enduring reasons why holding onto your diesel might still be a sensible choice.

A Shift in Perception: From Promotion to Caution

For a significant period, diesel engines were actively promoted by the UK government. They were lauded for their superior fuel efficiency, particularly on longer journeys, and their perceived environmental benefits due to better MPG figures compared to their petrol counterparts. This endorsement led to a surge in diesel sales, with diesel-powered vehicles accounting for nearly half of all new car registrations annually. However, a confluence of factors, including new pollution studies, emissions scandals, and a growing awareness of air quality impacts, has led to a significant shift in policy and public perception. Diesel engines are now increasingly targeted by tax increases and urban emission charges, fundamentally altering their appeal.

The Impact of Emission Zones on Diesel Values

The introduction and expansion of Ultra Low Emission Zones (ULEZ) in London, alongside the rollout of various Clean Air Zones (CAZ) and Low Emission Zones (LEZ) across the UK, have had a pronounced effect on diesel car sales and values. Drivers, especially those residing in or frequently travelling through urban areas, are increasingly scrutinising their vehicle's compliance with these zones. For instance, non-Euro 6 diesel vehicles entering London's ULEZ face a daily charge of £12.50. This trend of imposing charges on more polluting vehicles is likely to continue, making older diesel cars less attractive for urban dwellers. Before making any decisions, it's crucial to check your car's ULEZ compliance status, especially if you live in or near London.

When Does a Diesel Car Still Make Sense?

Despite the negative press and increasing regulations, diesel engines still offer distinct advantages in specific scenarios. Understanding these benefits can help you decide whether selling is the right move for you.

1. Long Journeys and High Mileage

If you cover a substantial annual mileage, typically 15,000 miles or more, diesel engines can still offer significant cost savings compared to petrol equivalents. Their superior MPG means fewer refuelling stops and lower overall fuel expenditure on extended trips. This makes them a pragmatic choice for those who frequently undertake long-distance travel.

2. Rural Living

For individuals living in rural areas, the impact of urban-focused diesel taxation and emission charges is often negligible. While older diesel vehicles may not be a sound investment due to potential future restrictions, newer diesel cars meeting Euro 6 standards are largely exempt from current urban taxes. However, it's worth noting that consistent short-distance, urban driving can lead to the clogging of a diesel particulate filter, potentially negating some of the benefits.

3. Larger Vehicles and SUVs

Diesel engines remain a compelling option for larger vehicles such as people carriers and SUVs. The inherent torque and power of a diesel engine, available at lower rev ranges, contribute to better fuel economy in these heavier vehicles. Furthermore, they are generally easier to drive, as they require less aggressive acceleration to get moving compared to their petrol counterparts.

4. Towing

The robust torque of diesel engines also makes them ideal for towing. Whether you're pulling a caravan, a trailer, or other loads, the engine's pulling power and efficiency provide a significant advantage, similar to its benefits in larger vehicles.

Understanding Euro Emissions Standards

The Euro emissions standards are critical when assessing the compliance and potential value of a diesel car. For new diesel cars, meeting Euro 6 emission guidelines is a legal requirement. For second-hand vehicles, the regulations are slightly more nuanced:

• The Euro 6 law came into effect for new vehicle registrations from September 1st, 2015.
• Vehicles registered from September 1st, 2016, are legally guaranteed to meet Euro 6 emission laws.
• For cars registered between 2014 and 2016, it's advisable to check with the manufacturer to confirm their Euro 6 compliance, as a loophole allowed some cars manufactured before June 1st, 2015, to be sold until September 1st, 2016.

Larger diesel cars and SUVs can still offer financial sense due to their fuel economy, but it's imperative to verify the emission standards they meet. Cars registered before these dates may not meet the latest emissions laws, with few exceptions.

The Resale Value of Diesel Cars

For current diesel car owners considering a sale, understanding resale value is paramount. While prices for second-hand diesels have seen a decline, there has been some recent recovery. The good news is that the fall in value hasn't been a complete collapse, and prices are holding up particularly well for larger diesel models, which remain in demand due to their favourable fuel economy. This means that if you own a larger, more premium diesel vehicle, you may not lose as much value as you might expect when selling.

Even for smaller diesel-engined cars, where values have fallen more noticeably, there's still a silver lining. Their reduced prices make them an attractive proposition for buyers who are more focused on securing a good deal than adhering strictly to anti-pollution regulations. Consequently, these vehicles are likely to sell relatively quickly.

Diesel Car Scrappage Schemes and Alternatives

Manufacturers have historically offered diesel car scrappage schemes, providing significant savings of up to £8,000 on new vehicles when trading in an eligible older diesel car (often those meeting Euro 4 standards or earlier). These schemes can be a fantastic way to upgrade to a newer, cleaner vehicle while recouping some value from your current diesel. If you're not in a rush to sell, and urban driving is not a daily concern, you might consider holding onto your diesel for a while longer. There's no immediate indication that diesel fuel or parts will become scarce, allowing you more time to save for your next vehicle.

The 'Diesel Toxin Tax' Explained

The term 'diesel toxin tax' refers to various measures implemented to discourage the use of diesel engines in favour of zero-emission vehicles. The primary driver behind these measures is the detrimental impact of Nitrogen Dioxide (NO2) emissions from diesel engines on urban air quality and public health. The UK has faced warnings from the European Commission to reduce NO2 levels. London's ULEZ, which absorbed earlier 'diesel toxin tax' initiatives, exemplifies these measures. Many cities and regions are now imposing charges on vehicles that do not meet Euro 4 (petrol) or Euro 6 (diesel) standards. While the current focus is often on heavy goods vehicles and public transport, the impending 2035 electric switchover and ongoing air quality concerns suggest that diesel engines, along with other pollutive engines, will face increasing restrictions.

Will Diesel Cars Be Banned in the UK?

The UK government has pledged to ban the sale of new petrol and diesel cars by 2035. However, an outright ban on existing used diesel cars is considered highly unlikely in the foreseeable future. While taxes and charges are expected to increase, making them less appealing for some, a complete ban would be impractical and likely to face considerable opposition. Many manufacturers have already ceased offering diesel engines in the UK or removed them from their model ranges, anticipating the shift towards electrification. This trend, coupled with the growing availability and accessibility of hybrid and electric vehicles, suggests a gradual decline in diesel car demand and production rather than a sudden prohibition.

Diesel Taxes and Charges: A Closer Look

When considering the financial implications of owning a diesel car, it's essential to factor in all associated taxes and charges. For diesel cars registered on or after April 1st, 2017, the first year's road tax is dependent on both CO2 and NO emissions. Cars meeting the Real Driving Emissions 2 (RDE2) standard for NO levels and with CO2 emissions below 75g/km benefit from a low initial tax payment of just £25. However, this figure escalates significantly for more polluting vehicles, reaching up to £2,365 for those with CO2 emissions over 255g/km and non-compliant RDE2 NO levels. From the second year onwards, most diesel cars are taxed at the standard rate of £165 per year, with an additional £355 annual surcharge for cars valued over £40,000 at purchase, applied for the first five years.

Furthermore, some local councils, particularly in London (e.g., Westminster, Camden, Islington) and other cities like Edinburgh, are introducing additional parking charges for diesel vehicles. These measures are designed to discourage diesel use in urban environments and are likely to become more widespread.

So, Should You Sell Your Diesel Car?

The landscape for diesel cars in the UK has undoubtedly become more complex, with increased costs and regulations to consider. However, it's not necessarily the end of the road for diesel ownership just yet. For specific use cases, such as high annual mileage, rural living, or the need for a powerful vehicle for towing or larger SUVs, diesel engines can still offer financial advantages over petrol or alternative fuel vehicles. Modern emission laws are continuously evolving to mitigate the environmental impact of all engine types.

If you currently own a diesel car and are contemplating selling, there's no need to panic. You can still achieve a good resale price, especially for well-maintained larger vehicles. For smaller diesel cars, their affordability can still attract buyers. Selling through platforms that connect you with multiple dealers nationwide, like Motorway, can help you secure the best possible price and a convenient collection service. Ultimately, the decision to sell depends on your individual driving habits, location, and financial priorities. Take the time to assess your needs and the current market to make an informed choice.

Frequently Asked Questions

1. Will diesel cars be banned in the UK?

New diesel car sales will be banned from 2035. However, there is no indication of an outright ban on used diesel cars in the foreseeable future, though taxes and charges are likely to increase.

2. Is it still worth buying a diesel car in 2023?

It depends on your driving needs. If you cover high mileage, particularly on motorways, a diesel can still be economical. However, for urban driving, the increasing emission charges and potential restrictions make it a less attractive option.

3. What is the Euro 6 standard for diesel cars?

Euro 6 is an emissions standard that limits the amount of pollutants a vehicle can emit. For diesel cars, it significantly reduces nitrogen oxide (NOx) and particulate matter emissions. Cars registered from September 2016 onwards generally meet this standard.

4. How much is the ULEZ charge for a diesel car in London?

Non-Euro 6 diesel cars entering the ULEZ zone in London are subject to a £12.50 daily charge. Euro 6 compliant diesel cars are exempt from this charge.

5. Should I sell my diesel car if I live in a city?

If you live in a city and frequently drive within low-emission zones, selling your diesel car, especially if it's not Euro 6 compliant, is likely a wise decision to avoid charges and potential future restrictions.

This article provides general information and should not be considered definitive financial or legal advice. Always consult with relevant professionals for personalised guidance.

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