When buying a car, one of the key factors to consider is depreciation—how quickly a vehicle loses its value over time. While all cars depreciate, diesel cars tend to retain their value better than petrol cars, particularly in the UK.
But what makes diesel vehicles a better long-term investment? In this article, we’ll explore the reasons diesel cars hold their value better than petrol cars, the key factors affecting their resale price, and whether they are still a good investment in today’s market.
1. Diesel Cars Are More Fuel-Efficient
How Fuel Economy Affects Resale Value
One of the biggest reasons diesel cars hold their value is their superior fuel efficiency. Diesel engines typically provide 20-30 percent better fuel economy than petrol engines, particularly for motorway driving.
Key Advantages of Diesel Fuel Efficiency:
- Higher miles per gallon (MPG): Diesel engines offer better fuel economy, reducing overall fuel costs.
- Ideal for high-mileage drivers: Those who cover long distances—such as fleet operators or frequent commuters—find diesel cars more cost-effective.
With rising fuel costs, buyers in the used car market continue to seek fuel-efficient diesel vehicles, keeping their value stable. For a deeper comparison, see diesel vs. petrol fuel efficiency from Auto Express.
2. Diesel Engines Last Longer
Why Longevity Matters for Resale Value
Diesel engines are designed for higher mileage and durability, making them more appealing in the used car market.
Reasons Diesel Engines Last Longer:
- Stronger internal components: Diesel engines operate at lower RPMs, reducing wear and tear.
- Better suited for long journeys: Diesel engines perform best at highway speeds, minimizing engine strain.
- More resistant to breakdowns: Well-maintained diesel engines can easily surpass 200,000 miles.
Because of their extended lifespan, diesel cars maintain higher resale values than petrol models. Learn more about why diesel engines last longer on Carbuyer.
3. Diesel Cars Have Higher Torque and Towing Power
Why Torque Affects Used Car Prices
Torque is the turning force of an engine, and diesel engines typically generate more torque at lower RPMs than petrol engines.
How This Impacts Resale Value:
- Better for towing: Diesel cars are preferred for caravans, trailers, and commercial use.
- Improved load-carrying ability: Diesel engines handle heavy loads more efficiently.
- Preferred for larger vehicles: Diesel SUVs, pickups, and vans maintain higher resale values due to demand for torque-heavy vehicles.
Because many buyers specifically look for torque-heavy vehicles for towing and hauling, diesel models often retain their value longer than their petrol equivalents.
4. Diesel Cars Are More Popular for Business and Fleet Use
How Fleet Demand Helps Retain Value
Many commercial fleets and businesses prefer diesel cars because of their long-term cost savings and efficiency.
Why Businesses Prefer Diesel Vehicles:
- Lower fuel costs for long-distance driving
- Durability and reliability for high-mileage use
- Better resale value for fleet turnover
Since diesel cars are consistently in demand by fleet managers, taxi companies, and transport businesses, their resale prices remain stable.
5. Diesel Cars Have Lower CO₂ Emissions (In Some Cases)
Why Low Emissions Help Resale Value
While diesel engines produce more NOx emissions, they often emit less CO₂ per mile than petrol engines.
How This Affects Resale Prices:
- Lower road tax (for older models): Before tax reforms, diesel cars benefited from lower vehicle tax rates due to their reduced CO₂ output.
- Company car tax savings: Many diesel models were historically favored in the UK for company car tax benefits.
- Eco-conscious buyers may still prefer diesel: Some buyers still see fuel-efficient diesel models as a better option than petrol.
However, recent changes in ULEZ (Ultra Low Emission Zone) regulations have made older diesel cars less attractive in city areas.
6. Diesel Cars Are Built for Long-Distance Travel
Why This Matters for Depreciation
Diesel engines perform best on long motorway drives rather than short city commutes.
Key Advantages for Long-Distance Drivers:
- Fewer fuel stops compared to petrol cars
- Better engine performance at high speeds
- Reduced wear on engine components
For drivers who regularly cover long distances, diesel cars remain the preferred option, supporting their resale value.
Will Diesel Cars Still Hold Their Value in the Future?
Although diesel cars have historically retained their value better than petrol cars, new market trends are affecting their future depreciation rates.
Future Resale Value Considerations:
- Diesel SUVs, pickups, and work vehicles will likely hold value longer.
- Euro 6-compliant diesel cars will remain desirable for meeting emissions standards.
- Older Euro 4 and Euro 5 diesel cars may depreciate faster due to ULEZ charges.
- The rise of hybrids and EVs may reduce demand for used diesel cars over time.
Despite new challenges, diesel vehicles remain valuable in many segments, particularly for towing, long-distance drivers, and fleet use.
Conclusion
Diesel cars hold their value better than petrol cars due to their fuel efficiency, engine longevity, higher torque, and demand in fleet and commercial markets. While ULEZ regulations and tax changes may impact older diesel cars, modern Euro 6 diesel models still retain strong resale value for those who need long-distance reliability and towing power.
