Diesel values pull up price premium

The price premium of diesel cars over petrol models widened to a record high in January, new figures have shown.

A report from BCA found that the premium, which had narrowed at the start of 2009, rose to more than £1,600, despite the fact that diesel cars enter the market at a higher average mileage.

Tony Gannon, communications director, BCA, said: "There can be little argument that the average price of a diesel car always outperforms that of a similar average petrol model.

"Research from BCA's Pulse report on high volume ex-fleet and lease cars shows there is a clear and significant difference in average value at remarketing time - as much as £1,616 in January 2011 - equivalent to a 32.3% variance or nearly a third more on average."

Mr Gannon added: "While diesel values are much higher, the BCA price trends always move in tandem and there are no instances of petrol values falling while diesel values are rising, for example. However, there are several instances where diesel values at BCA have climbed significantly more sharply than petrol values, as demonstrated in January of this year."

Average values for diesel models climbed from £5,883 to £6,654 in January - a surge of 13.1% (or £771) and nearly double the relative rise in values seen in petrol cars, which increased by 6.7% (or £316) from £4,712 to £5,208.

Copyright © Press Association 2011