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Petrol or diesel – which is most cost-effective for your next company car?

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30 May 2014

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The message is: don’t assume diesel is best for you. Do your research first

For starters, the petrol driver will benefit from a lower P11D value (£17,540 versus £19,040). However, in terms of CO2 (105g/km against 95g/km) and the company car tax rate (14% opposed to 15%), there is little to choose between petrol and diesel models of the 308.

But the crunch comes when it comes to how much company car tax you will pay.

In the petrol Peugeot 308 it’s £491 a year (at the 20% marginal rate) and for the diesel Peugeot 308 it’s £571. So the petrol version will put more pounds in your pocket. And what’s more petrol is cheaper at the pumps.

So there’s good evidence to start considering what you should be running, not just plumping for diesel ‘because that’s what we’ve always done’.

Petrol or diesel? On this evidence, if you’re an SME with the choice of what fuel your company car runs on, money could be saved by doing your research via our company car tax calculator

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Matt Morton

Matt Morton

Matt Morton is an automotive content writer for Business Car Manager

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