Motorpoint removes diesel premium

(31/03/2008)

Motorpoint, the car supermarket group, is selling new diesel cars at a rate more than 25% above the already mushrooming national trend because its pricing policy has broken down a barrier that excludes many drivers - the so-called diesel premium.

Car retailing commentators put the extra cost of a diesel car over its petrol equivalent at between £750 and £1,500. According to a new Motorpoint survey, half of British drivers plan to opt for a diesel-engined car next time they buy. But for many of them the fuel cost saving could be wiped out by this price differential.

The survey results reflect Motorpoint’s customer demand levels with diesels accounting for more than 50% of sales last month – considerably ahead of the 40.2% diesel share of national new car sales in 2007.

“The diesel premium has kept many drivers out of their preferred diesel models,” said Motorpoint managing director David Shelton. “But our customers are finding diesels can still make economic sense for them because they are paying considerably less for their cars in the first place. We believe this to be why our diesel sales are so far ahead of trend.

“For example, right now Motorpoint has new Renault 1.9 dCi Dynamique diesel coupe cabriolets at £13,999. That’s £6,788 below a main dealer’s recommended forecourt price. Diesel premium; what diesel premium?”

Related categories:  Car dealers   Convertible car   Coupe car   Diesel car   Renault 

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