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Mike Waters' blog: 21 May 2012 - Decisions, decisions
Date: 21 May 2012
If you're looking to select a new vehicle, whether it's a car, van, people carrier or minibus, one of the key decisions to make is around engine type; and I'm not just talking about a 1.6 vs. a 2.0-litre.
With new technologies (hybrid, plug-in hybrid, fully electric, range extenders) adding to the age old petrol vs. diesel debate this has become a much more complex area than it used to be.
So how important is it to make the right choice? Well clearly it's crucial. It directly impacts the running costs of the vehicle including tax, fuel and maintenance; which depending on how long you keep a vehicle can equate to anything from hundreds to thousands of pounds.
It also has a significant bearing on the vehicle resale value so selecting a technology which is undesirable on the used car market when you come to sell it can cost you thousands in depreciation.
Many companies lease to reduce their exposure to the second of these issues - the volatility of the used vehicle market. However, if a vehicle is likely to depreciate heavily during the life of the lease, this will be reflected in the rate that you pay.
If you purchase the vehicle outright, the risk is greater and depreciation will hit you directly in the pocket.
In 2011 the market for diesel cars surpassed petrol variants for the first time and as more businesses and drivers looked to minimise costs, diesel took a 50.6% share of the market.
Registrations of alternative fuel vehicles rose by 11.3% to over 25,000 units, and now account for a 1.3% share of the total market.
With a range of engine types and variants readily available - there is a lot of choice. Some will see this as a positive because options are a good thing; however this choice can also cause a headache and it can be difficult to make the best decision when selecting a vehicle.
My advice is to look hard at your specific requirements and then make a decision. Choices around technology and fuel type can't be made in isolation as you need to look at things like up-front cost, the cost during the lifetime of the vehicle, performance and why you need it.
It is only by understanding how a vehicle performs against these criteria, and which are the biggest priority for you, that you can make a good decision.
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