Used diesels make less sense financially, says EuroTaxGlass
Wednesday, 4 June 2008 12:00 AM
Buying a used diesel car isn't necessarily going to save you money, unless it is a long-term investment
As more and more motorists make the decision to flee the increasingly expensive petrol market in favour of fuel-efficient diesel alternatives, it will come as a relative shock to hear a dissenting voice in the crowd.
EuroTaxGlass has released a statement saying the typical three-year-old used diesel car will need to be run for a further seven years before the financial benefits outweight those of a comparable second-hand petrol model.
The company's research found that the average three-year-old mid-sized family diesel car currently costs between £600 and £800 more than its petrol counterpart to buy, but the annual fuel bill is currently only £105 less. Only after seven years will the lower fuel bills compensate for the higher purchase price.
Annual fuel costs for a typical three-year-old diesel car currently stand at £1,373 - up 25 per cent, or £273, over May 2007.
For the equivalent petrol car, fuel bills are now £1,478, up 15 per cent, or £186, compared to May last year.
"As well as the prospect of lower fuel bills, some consumers are attracted to used diesel models in the expectation that depreciation will be lower compared to an equivalent petrol car," explains Adrian Rushmore, managing editor at EurotaxGlass.
"However, if the average three-year-old used car was retained for seven years in order to make the most of the lower fuel prices, the premium over a petrol model of the same age might, by then, only be around £100."
The used car market has not yet had time to react to the dramatic year-on-year increases in fuel costs, suggests Mr Rushmore.
"Our view is that rising fuel costs will bring a further acceleration in the depreciation of fuel inefficient cars, although some highly aspirational sports models may not suffer to the same degree.
"While there is nothing to suggest that prices of used diesels are falling faster as availability increases, clearly the broader financial argument for diesel ownership is becoming less persuasive.
"For diesel cars to remain in favour, they may need to rely more upon driving characteristics rather than any compelling financial considerations."
