The value of used diesel cars has dropped significantly over the past year as fuel prices have risen sharply, accelerating a long-term decline in their popularity. The cost of a litre of diesel has exceeded £2 earlier this month and still teeters dangerously close to the 200p threshold today, with tensions between the US and Iran keeping oil markets unstable. Analysis of second-hand prices by Solera CAP HPI found that the average value of a diesel car has dropped by 7% in the last 12 months.
While the typical value of a three-year-old diesel motor was already in decline, the firm says the depreciation curve has sharpened noticeably since March, as rising pump prices have put greater pressure on demand. A three-year-old diesel car with 60,000 miles has lost an additional 0.6% of its value in October alone, marking the fifth consecutive month of declines. In contrast, hybrid and electric vehicles have seen their used prices increase, with hybrids rising by 0.5% and EVs by 0.3% over the same period.
Chris Plumb, head of current valuations at Solera CAP HPI, says the trajectory of second-hand diesel prices shows “how quickly buyer sentiment towards running costs can feed through into used car prices.” Used diesel car prices are taking a pounding due to surging cost of fuel, market experts say. He added: ‘Diesel at over 195p a litre is difficult for buyers to ignore, particularly when they are comparing it with hybrid and electric alternatives.’
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Dealers are becoming more cautious about stocking used diesel vehicles. Plumb notes that some used-car dealers are now becoming hesitant about taking them in part exchange to bolster their stock. “Retailers are seeing that reflected in demand, with diesel stock needing to be particularly desirable or competitively priced,” he explained.
Hybrids, however, remain more resilient. Their used prices have either stabilized or increased, partly because they offer lower fuel costs without requiring a full transition to electric power. For many buyers, hybrids provide a practical middle ground that diesel cars no longer do.
The decline is not limited to used vehicles. Carwow’s data shows a 33% drop in test-drive requests for new diesel models since March, while petrol inquiries fell by 25%. Over the same period, interest in EVs rose by 28%, suggesting high fuel costs could be accelerating the shift away from conventional combustion engine cars. Diesel now accounts for fewer than one in 20 new car registrations so far in 2026.
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