The great petrol-diesel divide

With demand for cars at its highest point for 12 months, a car buying divide has emerged between petrol and diesel, according to new research from AA Personal Loans.

At a time when, despite fuel price rises, the gap between the cost of petrol and diesel has been closing, the AA research reveals that private car buyers are split over the perceived benefits of buying a petrol or diesel car. Britons planning to buy a brand new car in the next 12 months say they are most likely to choose one fuelled by petrol (46%) rather than diesel (28%). On the other hand used-car buyers, who will comprise 75% of total car demand over the next 12 months, are significantly more likely to choose diesel rather than petrol (33% compared to 28%).

As part of AA Personal Loan’s Deals on Wheels Index – a quarterly study that probes future demand in the car market – a GB representative sample of over 2,500 drivers were asked about their car buying intentions over the coming year.

Family cars opt for diesel

Car buyers with growing families are those most likely to opt for a large car and are more likely to choose one powered by diesel (44%). This comes at a time when environment concerns have led 20% of Brits to shun the idea of air travel, opting instead for a family driving holiday to Europe.

Young Brits are those most likely to go for sporty, petrol powered cars (32%) and value diesel the least. Buyers of petrol cars are most likely to be drawn to cars with ‘sex appeal’ (12% petrol versus 5% diesel); to buy a car that performs around town (15% to 8%) or be drawn to the appeal of speed and power (12% versus 8%).

Mark Huggins, Managing Director of AA Personal Finance says: “Diesel seems to be king in the second hand market. The swing to petrol for 57 plate cars could create a future supply issue in the second hand market and so used diesel cars may hold their value for longer.

“But when buying a new car it’s important to consider not just its cost, but also how you will be using it. If you’re making frequent long journeys for example, a diesel could save you money with its greater fuel efficiency over long distances. Whilst diesel cars might cost more up front, getting a good deal on your finances could mean you are able to afford a car that will hold its value for longer as well as cutting your fuel bill.”