Scramble for second hand eco cars

Nov 6 2008 Steve Hughes

Scramble for second hand eco cars

MILLIONS of motorists are now chasing second-hand cars that use alternative fuels in a desperate bid to slash costs.

In their quest to make savings they are prepared to pay over the odds for them, sending the second-hand values of hybrids such as the Honda Civic and Toyota Prius soaring.

Latest figures from the UK's biggest car auctioneer, BCA, reveal that whilst second-hand values generally have fallen by eight per cent, the values of hybrids have risen by 22 per cent.

This makes such cars worth an average of 30 per cent more than their conventional petrol or diesel-powered equivalents and as demand increases, values will rise even further because of their growing scarcity.

Such cars advertised on dealer forecourts and the Internet are snapped up immediately and many would-be buyers have even registered with potential sellers so that they can be first.

The reason for the stampede is partly high fuel prices but mainly the impending introduction of road taxes that will create formidable discrepancies between the cheapest and most expensive models.

Some cars have CO2 emissions that are so low they escape the annual road fund licence completely whilst in the case of the most polluting models the annual tax is about to rise by £10 a week from seeing annual charges rise from £400 to £900.

BCA spokesman Tim Naylor says: "Demand is continuing to rise because average values for hybrid/electric and LPG powered cars are well ahead of market expectations, with the examples we handle always attracting a flurry of bidding.'

Values from the latest BCA Pulse report show that the alternative fuelled vehicles entered for sale by fleet operators are averaging up to 122% of the guide price. In comparison, the average fleet values for petrol and diesel are currently around 92%.

Mr Naylor added 'The hybrid electric/petrol models are definitely the flavour of the moment because there are no issues over fuel availability.

"Motorists have already seen a variety of alternative fuels heralded as the answer to global warming and are understandably wary of making the wrong choice in terms of support and infrastructure. For example, just where do you go to get LPG?'

'Last year we suggested there needed to be a sea-change in public opinion before any kind of alternative fuels became acceptable but the very high pump prices earlier this year and on-going economic woes have kick-started the interest with private buyers."

In reality, the most economical and cleanest cars to drive on a daily basis are the new generation of eco models from the likes of Ford, BMW, SEAT, Volkswagen and a host of others who market ECOnetic, EfficientDynamics, EcoMotion and BlueMotion versions of their mainstream models.

BCA's Used Car Market Report showed that half of all respondents said they would consider buying a car that does more miles to the gallon and 20% said they would change to a car with lower service and maintenance costs.

A total of 38% of motorists will cut their carbon footprint by walking more and almost 30% said they will attempt to reduce mileage to tackle rising fuel costs.

Twenty eight per cent of motorists said they would move to a car with a lower CO2 emission rating to cope with potential changes in road dute, 6% of respondents said environmental considerations were an influencing factor in their most recent car purchase - this is up from 4% last year and 2% in 2006.

Five per cent suggest their next car will be an alternatively-fuelled car, with most preferring to buy used.