Should You Avoid Diesel Business Vehicles

24/01/19

Many different types of businesses across various industries make use of vehicles. Common examples of this include the fleets of trucks and vans used in supply and logistics, and also traders who rely on their vehicles to get them to and from different jobs.

Whatever the circumstance might be though, a common theme amongst these drivers is that they want their business vehicles to be dependable but also practical, without expensive running costs. It’s with this principle in mind that many companies opt for diesel models which are historically more economical and invariably offer more miles to a tank.

However, new and upcoming legislations could prove to be something that makes diesel-powered vehicles actually more expensive than their petrol, hybrid and electric counterparts.

To help make sense of this, in this post we have looked at what these new sanctions and legislations look like and weigh up whether or not business owners should subsequently avoid buying diesel vehicles.

Diesel Car Bans and Fines

One of the major reasons sales of diesel cars are falling in general, is because in 2017 the UK Government announced it is to ban the sale of both petrol and diesel cars from 2040, however from 2020 diesel cars will also face ‘new pollution taxes’.

On top of this, there are plans in many UK cities for ‘Clean Air Zones’ – like this example in Leeds – where petrol and diesel vehicles could face charges for being driven. The bigger issue here for diesel cars and vehicles is that the severity of these charges could be based on emissions and engine standards. So, diesel engine buses, HGVs, coaches and vans – which are often used by businesses – could be hit the heaviest.

Based on this, it would seem on paper that buying diesel vehicles for long term business use could prove costlier than petrol, hybrid and electric alternatives; which is potentially a big part of why general sales are falling.

Falling Demand, Falling Costs

However, in the short-term, it can be argued that buying used or new diesel cars and vehicles might make financial sense for business owners. As demand falls, prices may fall as well, making them a better option for those looking to save on the expense of their business’ fleet.

In addition to this, if we consider the current fuel costs against the economy and of modern diesel vehicles which comply with the current Euro 6 emissions regulations, these invariably get higher miles-per-gallon. In other words, there are fewer trips to the pumps and lower costs for businesses overall.

From an employee perspective, it may also be a more enjoyable experience for those who are out on the roads, as the more miles they can do without having to stop, the easier it can be for them to do their jobs. Plus, not having to refill as often cuts down on the number of expenses claims and admin they have to carry out.

The Future of Diesel Cars and Vehicles

What business owners shouldn’t ignore though is the fact that diesel cars will soon face the aforementioned restrictions, fines and increased taxes. However, the same can also be said of petrol vehicles, so again those who want their vehicles for business to be something that lasts them a long time may want to consider alternatives.

Those who currently have a fleet of diesel business vehicles may also wish to look at what diesel car scrappage schemes are available, as these can help make the change to different models more affordable.

To Buy or Not to Buy?

Ultimately the answer to the question ‘should I buy a diesel car or vehicle with my business?’ it would seem comes down to current circumstances. For today’s business buyers who want economy, a diesel does seem a good option. However, for those wanting to invest in vehicles to use for a longer period this could prove much more expensive and costly.

An alternative option for business owners is to look at business vehicle leasing, as this could help avoid the previously mentioned long term issues with diesel car ownership as these are only leased for a shorter fixed term. What’s more, leased vehicles are often new and come with the latest engines and specs that can provide those using them with a better driving experience and better fuel economy.

If you are purchasing a business vehicle then you should also consider your insurance needs. To learn more visit our fleet car insurance page.

Image courtesy of iStock

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