i read on auto express that the sales of diesels might plumet because of this huge tax increase

"Are diesels on the D-cline?

is the diesel bubble about to burst? A new report suggests that the seemingly relentless popularity of oil-burners could be on the slide - and recent changes in the car tax system are to blame.

The survey, carried out by GE Company Car Trends, found that only 38 per cent of fleet managers questioned predicted an increase in the use of diesels in the future. Last year, sales of derv models rose by a whopping 40 per cent, while the overall new car market was down by five per cent. According to the poll, however, the current tax situation could severely impact on this upwards curve.

A spokesman told Auto Express: "The reintroduction of the three per cent benefit-in-kind diesel surcharge on Euro IV-compliant models from April this year may be leading to a softening of demand for diesels."

However, this projected slump does not seem to be affecting the popularity of the fuel among company car drivers. A new report from fleet funding provider Network suggests that diesels now account for more than two-thirds of the UK's company vehicle fleet. "In just five years, diesels have not only superseded petrols but have taken a stranglehold on the market," said a spokesman."

http://www.autoexpress.co.uk/news/66243/are_diesels_on_the_dcline.html

will this affect you?

Seems like the price of diesel at the pumps is also on the up again. Paid 95.9p a litre on Saturday compared to the 92.9p I paid the week before :thumbdwn:

Chris

I thought even subaru are going to be offering diesel imprezas soon? Probably misread it.

Seems like the price of diesel at the pumps is also on the up again. Paid 95.9p a litre on Saturday compared to the 92.9p I paid the week before :thumbdwn:

Chris

the price increases apply to petrol too.

Infact surely the new tax laws make it cheaper to drive diesel still.??

I've been payng 95.9 for diesel for ages now, it went cheaper for a few weeks after the latest fuel scare then creeped back up! (as usuall)

Subaru are putting a Diesel Boxer engine into the Legacy sometime in the next 2 years, if thats a success they will also put it in the Impreza and whatever else they sell, one things for sure - as diesels go, it'll be the best sounding one by far!!

the price increases apply to petrol too.

I'm sure they will, but currently petrol prices round here have stayed stable :(

A diesel Legacy? I think I've found my next car

Chris

JAPANESE firm Subaru is set to become the first mainstream maker to have a diesel engine in a flat-four boxer layout, when it introduces a brand new 2.0-litre unit in 2008.

The motor, claimed to match BMW's 2.0-litre TD for performance, will be introduced across the range. Sources say the first car to feature it is likely to be the legacy.

From Auto Express

A diesel Legacy? I think I've found my next car

Funnily enough, I was thinking exactly the same thing!!!

The article's pretty misleading. For starters the quote:

A spokesman told Auto Express: "The reintroduction of the three per cent benefit-in-kind diesel surcharge on Euro IV-compliant models from April this year may be leading to a softening of demand for diesels."

is all wrong. It's not a re-introduction of a surcharge for Euro IV-compliant models, it's the removal of a dispensation for Euro IV-compliant models from the surcharge which used to apply to all diesel cars (and will, once again, from 2006/07).

But anyway, diesel car emissions are so much lower than for petrol equivalents that even with the 3% surcharge, drivers will be better off with the diesel. And if they are paying for the fuel, they save at the pumps; if they are not, their company benefits and will likely incentivise them to opt for diesel if they are offered a choice.

E.g. Mondeo 1.8 is in 23% tax band; Mondeo 2.0 TDCI 115 is in 17% tax band in 2005/06 and 20% tax band in 2006/07.

I think that now that the fleet market has grown aware that modern TD cars are good to drive, as well as cheaper to run, there will be no turning back.