UK car prices warning issued to petrol, diesel and EV owners

Petrol, diesel and electric car prices could be set for dramatic changes as the ongoing fuel crisis puts pressure on valuations. Demand for EVs has increased since petrol and diesel costs soared, with dealers reporting higher interest in battery models over the past couple of months.

The increase in demand for electric cars could affect prices, with specialists warning that demand for raw materials could rise. However, the effects may also be felt across the board, with petrol and diesel owners also likely to be affected as demand for combustion models falls.

Fraser Brown, founder and managing director of automotive consultancy MotorVise, has told Express.co.uk that prices could come under some pressure if demand for petrol and diesel cars drops. He stressed that less efficient models, which prioritise power over fuel economy, were likely to feel the sting more.

However, Fraser has explained that the fall in prices is unlikely to be a sudden shift as petrol and diesel models still dominate the second hand car market.

He told Express.co.uk: “Most drivers still rely on petrol and diesel, and EVs aren’t practical for everyone yet, especially for those without access to off-street parking or a way to install a home charger.”

Diesel car values have been gradually declining as interest in the cars starts to fall. However, experts at Motorway.co.uk have stressed that costs are only slowly falling, with the values of some larger diesel motors holding due to their better fuel economy.

James Hosking, Managing Director of AA Cars, told Express.co.uk that a drop in demand would not cause a sharp drop in petrol or diesel car values.

He stressed that although there may be some softening in demand for less efficient vehicles, any impact on prices is likely to be gradual rather than dramatic.

Earlier this month, experts at Autotrader explained that the price of new battery electric cars has fallen below that of petrol cars for the first time. Brand new EVs are now an average of £42,620, compared with £43,405 for a new petrol machine.

Second-hand EVs are also falling as more stick hits the market, dropping by almost 10% year-on-year. Fraser Brown told Express.co.uk that it will soon become harder to justify sticking with petrol or diesel cars which will drive demand for EVs.

However, Robert Forrester, CEO of Vertu Motors has stressed that costs could slightly rise due to component costs.

He told Express.co.uk: “The outlook for new cars is being driven by persistently high input costs, irrespective of fuel prices. This is particularly acute for EVs, where battery raw material inflation remains significant. As a result, New car prices are more likely to rise across the board rather than fall.”