Diesels negative press not impacting motor trade

If you are involved in the motor trade, you are likely to be more familiar than most about the long-running debate over the relative advantages of diesel versus petrol fuelled vehicles.

According to widespread press reports, the final nail in the coffin for diesel vehicles might come in the form of government restrictions on their use and the introduction of a scrappage scheme, in order to reduce air pollution on busy urban streets.

As the Sunday Times Motoring pages pointed out on the 8th of May 2017, however, this remains the subject of public consultation only and no firm decisions have yet been made.

Certainly, the motor trade industry appears to have no desire to rush into a switch from diesel to alternatively fuelled vehicles. According to Motor Trader magazine on the 8th of May 2017, a survey of dealers revealed that only 18% of them were considering any early switch away from diesel.

Implications for motor traders

If you are in the motor trade, the continuing argument over diesel or petrol – and, of course, any government decisions about the two – could impact on the way you do business. One of the reasons for this is the way in which it might affect the costs you face as a trader:


  • diesel vehicles tend to be more expensive to buy – they are generally more expensive than comparable petrol vehicles;
  • purchase prices are often higher because of the more rigorous testing and technology required to pass exhaust emission controls;
  • they are also higher because customers may be inclined to pay more for a vehicle on which they hope to recoup some of that outlay later – through relatively cheaper fuel costs, for example, or a typically longer working life;


  • the higher value and the relatively higher cost of repair to diesel vehicles also tends to make insurance more expensive – and motor trade insurance is likely to be one of your significant overhead business expenses;
  • although motor trader’s insurance may account for a fair amount of your business expenses, insurance for motor traders also needs to take into account the many different types of business the term may embrace;
  • businesses range from franchise dealers to repair shops, auction houses to independent motor trade professionals – and each one is likely to have different insurance needs.

That is why you might want to consult a specialist provider, with expertise and experience in arranging motor trade insurance, in order to tailor the cover to meet your precise needs and requirements.

Whether the days of diesel powered vehicles are numbered or whether their eventual demise is still a long way off – as motor traders themselves evidently believe (according to the Motor Trader magazine) – getting appropriate, cost-effective and competitively priced motor trade insurance is likely to remain one of your important objectives.

This remains the case whether you are a relatively small, independent motor trader looking for road risks only, or cover for your sole premises; whether you are an independent motor trader with a turnover of up to £15 million; whether you are a large independent motor trader, motor auction house, franchise dealer or larger independent motor trade businesses; or even if your involvement is in trading collections of classic motor vehicles.

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