Conventional wisdom has long held that a 12 round contest between diesel and petrol engines only ever produces one return on investment winner for the fleet purchaser. But when wisdom becomes conventional it often means it’s time to review your assumptions, and research recently carried out by Parkers – the automotive valuation service – puts a lot more punch in the petrol corner than you might suppose.
Diesel engines have always given a better mpg return than petrol and back in the days when diesel was cheaper than petrol, paying a higher price for a new diesel vehicle made economic sense since that premium would quickly be recouped through the lower running costs. But perform the same calculation when diesel prices run typically 10% or more higher than petrol at the pumps and it can now take years – in some cases up to 25 of them – to break even on the extra investment! Take a look at Parkers’ calculator tool http://www.parkers.co.uk/cars/petrol-vs-diesel/ for some quick comparisons on model and engine size and you might be surprised at the results.
So the key message once again is don’t fall into a purchasing habit that is based on historical preconceptions – they may no longer apply. Regular reviews of spending and the value proposition in every procurement category must be at the forefront in current climes.
