Are Diesel Cars Cheaper To Run Than Petrol?

Monday, 30. June 2008

For those that lease diesel cars they aren’t aware that the cost of a diesel car is generally still more than a petrol equivalent as the higher cost of the car is more than offset by the much higher resale value of a diesel car at the end of the lease making the diesel cheaper in monthly costs than the petrol equivalent. However, we are starting to see a change as used diesel cars fall out of favour as the difference between petrol and diesel at the pumps continues to increase. Backing this up is research by EurotaxGlass (Glass’s Guide) which shows that a three year old used diesel would have to be run an extra 7 years before the higher price paid at a dealer’s for a diesel car at the moment is recovered in fuel savings. The difference in cost of the car is on average £600 – £800 but the annual diesel bill is only £105 less than the cost of petrol. If the cost of used diesel cars continue to drop and diesel continues to cos increasingly more the argument becomes less persuasive.