CAP Automotive has said that dealer speculation on a rise of less efficient cars because of falling fuel prices would be a ‘schoolboy error’, as other costs outweigh lower fuel charges.
High road tax for less efficient engines continues to outweigh any possible savings in fuel, despite pump prices falling to a five-year low, the valuations company said.
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In addition, a motorist tempted to reconsider such cars would experience increased expenditure through higher insurance, service, maintenance and repair bills.
For example, a family tempted to switch a two litre Vauxhall Insignia 16V Elite 5dr Auto for a V6 version Vauxhall insignia 2.8T 4×4 Elite 5dr Auto this year would find themselves paying £215 more after road tax even before taking into account an increase of around £300 in fuel costs over 10,000 miles compared with their previous car.
CAP’s retail & consumer valuation editor Philip Nothard said: "Dealers could find themselves sitting on stock they can’t shift and any motorist taken in by the idea that less efficient cars are suddenly an attractive proposition again could find themselves locked into a long-term finance deal, then stuck with a car that they can’t sell at the end of it.
"The assumption that lower fuel prices will unlock pent-up demand for a return to some kind of golden age of gas guzzlers is thinking that belongs in the 1970s.
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By GlobalData"We have also been extensively researching this issue among motor dealers and they confirm to us that fuel economy has not slipped at all down the list of priorities for the typical customer.
"Doubtless the odd ‘petrol head’ with a thirsty classic in the garage will be tempted to do a bit more driving while fuel is cheaper, but the suggestion that we are on the brink of a resurgence for less efficient cars is simply a schoolboy error."
