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Are diesel prices affecting overall sales?

Diesel pump price 4.19.06 small.jpg

The gut reaction is probably a “WELL YEAH!” response and you probably are ready to already email me and call me everything short of smart. However, in a recent survey of car dealers overseas, it may not be quite as bad as most would think. Sure, petrol is considerably lower than diesel on average, but when asked, almost 50% of dealers said they didn’t think or weren’t aware that there had been a downturn in diesel sales overall.

However, the evidence to support why diesel models would be down is pretty clear: most experts say that in order to get a real “payoff” by owning a diesel, it takes a driver who puts considerable mileage on his/her car. Diesels are higher on the sticker price and supposedly better in terms of “burning oil”, but studies have shown that it would take almost seven years to make up for the difference with today’s prices. While the rest of the world seems to be looking for smaller, more affordable, more mini-style engines, one would think that once again if asked, the dealers would have answered a resounding HECK YEAH IT’S GONE DOWN!

Maybe it’s just the nature of a car salesman to lie no matter what. Maybe.

(Strangely enough, 4% actually thought diesel demand had gone up. Can I have some of what they are smoking?)

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