Diesel cars drink away fuel benefit

Although diesel vehicles are recommended for environmental reasons, it is becoming apparent that these oil drinkers may not be quite so recommended for the health of your wallet.  According to new analysis undertaken by residual value experts from Glass’s Guide, opting for a used car that is a diesel is unlikely to save you any money unless you drive over 10,000 miles per annum.  

Diesel vehicles now account for more than 50% of all new car sales in the United Kingdom, with the rising number of diesel cars on the road also resulting in more sales of used cars that are diesel vehicles as well.  Despite having generally stronger fuel economy figures than their petrol engine equivalents, however, the price premium of diesel vehicles and the rising cost of diesel fuel essentially mean that greater miles to the gallon is a benefit, which is rapidly being mitigated if drivers fail to travel over 10,000 miles a year.  

Diesels, both new and used cars, command a very strong price premium over that of their petrol counterparts, according to Glass’s Guide, and over the course of the last few years the difference in the purchase price of three-year-old diesel and petrol vehicles has begun to increase significantly.  The good news, however, is that the gap now seems likely to remain constant.  

“More and more used diesels are coming on to the market and… we’re only going to see an increase in the amount available on the second hand market,” says Glass’s Guide Managing Editor Adrian Rushmore.  “This increased availability should stop used car prices rising too much further.”

Author - Michael Barclay
 

published: 17/04/2012