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Do Diesel or Petrol Vehicles Depreciate Faster?

By: Sally Aquire - Updated: 7 Oct 2012 | comments*Discuss
 
Do Diesel Or Petrol Vehicles Depreciate Faster?

Depreciation is one of the most worrying hidden costs of motoring, as all cars lose a proportion of their original value over time. Running costs are a factor in the extent to which vehicles depreciate. Generally speaking, vehicles that run on petrol are likely to depreciate more quickly than vehicles that run on diesel. This article discusses the impact of depreciation on petrol and diesel vehicles.

Depreciation of Petrol Cars

As depreciation is all about how much of its original value a car loses when it is sold, cars that have undesirable features may struggle to sell in the first place. The 4x4 'gas guzzlers' are a prominent example of this. Given the current high price of petrol, car buyers are becoming reluctant to purchase them, as they don't want to spend a small fortune of filling it up. An added discouragement is the increased amount of road tax that owners of these vehicles will have to pay as a result of the high fuel emissions given out by the cars.

In terms of actual depreciation, experts have suggested that large petrol-powered vehicles can depreciate by as much as £4000 in value compared to their diesel-run counterparts. If you have one of these cars, you might want to consider switching to Liquid Petroleum Gas (LPG) fuel instead, as it can be cheaper to run. It is also kinder to the environment than either petrol or diesel, which makes it a more desirable option for prospective buyers. If you choose this route, make sure that you get an LP Gas Association professional to do the necessary work.

Depreciation of Diesel Vehicles

Vehicles that are run on diesel are often more desirable to prospective car buyers due to the decreased depreciation in comparison to vehicles that are run on petrol. Although diesel fuel does tend to cost more in the first place, you can usually maximise your fuel better on diesel than petrol as it is more efficient.

However, it is rarely worth buying a new car just for the diesel element, as it will not make up for the amount of depreciation that comes with brand new cars when they are sold on. If anything, it will increase the amount of depreciation, as depreciation is generally highest with cars that are less than four years old. The amount that you can save on fuel costs by buying a diesel-powered car will be more than cancelled out by the amount that you will lose in depreciation. If you are going to buy a diesel-powered car, it is more cost-effective to choose a used car as depreciation is less.

Many motorists fear depreciation as it is a definite hidden cost of motoring. Most people are probably aware that their car can lose a good chunk of its value over time, but you may not be aware that the fuel that your car uses plays a large role in this. A car that uses diesel tends not to experience such sharp depreciation as a car that uses petrol.

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