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CAR LEASING: Part 2: Leasing a Diesel Car

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Things to consider

  1. Fuel Economy: Diesel is usually more expensive to buy than petrol; but it can offer a greater fuel economy. If the majority of your driving is done on the motorway and you are racking up in excess of 10,000 miles a year - then a diesel car may be for you.
  2. Residual Value: Popular diesel choices - such as the executive saloons Audi A4 and BMW 3 Series - tend to do well in the second-hand market, giving them a stronger residual value. A decent residual value, in either diesel or petrol will usually mean a lower lease.
  3. More Economical Over Distance: Providing more miles to the gallon, diesel cars are the preferred choice for long distance drivers.
  4. Clean Air: Diesel vehicles produce less CO2 emissions than petrol, but recent reports have suggested it isn’t as environmentally friendly as was once believed. Diesel cars are currently found to produce 11.5 times more NOx (Nitrogen Oxide and Nitrogen Dioxide) than petrol vehicles and these small particulates are proven to be damaging to health. Newer models will have a filter (DPF) in an effort to stop these particulates escaping into the atmosphere. High speeds will help to keep the filter clear.
  5. Repair Costs: Generally, diesel cars don’t need to be repaired as regularly as their petrol equivalent – but are more expensive to repair when they do. However, if you are leasing a new car for a typical 3 or 4 year period, this shouldn’t be an issue.
  6. City Driving: Diesel cars do not perform as well in the stop/start environment of city driving. It is worth noting that if you are doing more lower speed/short city journeys compared to motorway driving – then the DPF (Diesel Particulate Filter) can become clogged.
  7. Power: Despite engine development over the past 10 years narrowing the gap between the two in terms of performance – diesel still have the edge on power. Diesel vehicles can accelerate faster in higher gears, as they have more torque - making them perfect for motorway overtaking. Torque also makes diesel the preferred choice for towing.
  8. Initial Costs: Diesel vehicles are more expensive to buy. Diesel cars are popular (despite the recent bad press regarding pollution) and still have a better residual value than petrol, making them cheaper to lease - but more expensive to buy. However, this could all change in the future if the residual value of diesel vehicles decreases as expected.
  9. Tax: Before new legislation was introduced following the discovery of toxic emissions, Diesel owners enjoyed cheaper car tax. Before April 2017, all tax rates were based on CO2 emissions and vehicles producing less than 100g/km were tax exempt. A diesel car registered before April 2017 – will be charged at the low CO2 rate. From April 2018, unless your diesel vehicle meets the Euro 6d (European emissions standard) tax will be charged at a higher rate for the first year. From the 2nd year you will pay a standard rate of £140 for car tax on both a diesel and petrol vehicle.
  10. Insurance: Obviously car insurance is worked out based on your age, address, how long you have been driving etc. The only difference to consider between petrol and diesel is the cost of the car and how much it will be to repair/replace parts. Newer diesel vehicles have filters/emission systems that can be costly to repair – making diesel around 10-15% more expensive than petrol to insure.

Part 1: Leasing a Petrol Car

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Posted on 6th March 2019 at 12:38 PM

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