The new Honda Accord saloon goes on sale in June. But are you better off choosing the petrol or diesel model? Ralph Morton weighs up which is best for business.I’ve just come back from the first drive of the new Honda Accord saloon.
Honda is positioning the car and Honda brand as an alternative to the premium German products: Audi, BMW and Mercedes-Benz.
The prices have gone up over the old Accord. But with a greater emphasis on styling, quality and value for money packaging, the residual values – the car’s worth after three years – have risen. As a result the overall ownership cost over the period should be less.
“We think the key user-chooser model will be the diesel ES GT,” commented Graham Avent, manager – corporate operations, Honda. “For an extra L850 buyers get 17 inch alloys instead of 16 inch alloys, sports suspension, part leather seats, aero styling kit, fog lights, hands-free telephone and a USB port.”
I take his point. It seems a worthwhile upgrade – and it’s the model with the best residuals. But while the Accord ES GT diesel might suit the company car driver of a larger corporate organisation, it might not be the best value for a small business owner or employee.
The cheaper petrol ES GT might just edge out the diesel on costs, despite slightly weaker residuals. And with the gradual erosion of diesel’s competitiveness thanks to the 8p differential at the pump, a canny small business buyer might be better off with the petrol Accord.
So I did some quick, slightly crude, workings to see which would be better for a small business.
Accord 2.0i-VTEC ES GT v Accord 2.2i-DTEC ES GT
- P11D value L19,885 v L21,735
- Company car tax band 22% v 20%
- Monthly contract hire cost L348 v L355
- Monthly fuel cost (106.8p petrol/114.3p diesel) L108 v L90
- Monthly company car tax (40%) L146 v L145
- Total monthly cost L602 v L590
- Winner Accord diesel
The above assumptions are based on a three-year and 30,000 mile contract hire agreement with maintenance; figures courtesy of HSBC DriverQuote. The total monthly cost represents the cost of contract hire + fuel + company car tax. Fuel cost: www.TheAA.com (March 08).
Conclusion
It’s very close, as you can see. The diesel Accord just edges the petrol version – on the assumption that the business owner is paying for the vehicle and the fuel and the tax charge.
But the point is this: what’s good for a larger corporate isn’t necessarily the same as a small business user. And if there’s greater demand from corporates for the diesel model, car leasing brokers may well have some keen deals on the petrol Accord.
Either way, talk it through with your dealer’s business sales advisor, car leasing broker or contract hire company to make sure you get the best for your needs. And your business.
