FOUR months ago we had a false alarm about the return of our long-term Honda Accord. We expected Honda to be knocking on the door at Fleet Towers late last November to take away our beloved Accord after six months.

However, there was an unexpected stay of execution and we were allowed to keep it a while longer until a new diesel model was ready.

Our diesel arrives next week, and while we are looking forward to putting it through its paces over the next 12 months it gives us time to reflect on our petrol-powered model which has served us well since it arrived last spring, but now will surely become the poor relation in the range for fleets.

Honda has underestimated the demand for the diesel Accord. Initially, it expected a 50/50 split, but the appetite for diesel now comfortably exceeds that for petrol by about two-to-one.

It's true that the diesel Accord saloon will offer 15% benefit-in-kind liability thanks to its Euro IV compliant diesel engine, but our petrol Accord with its automatic transmission has proved surprisingly frugal given the chance.

In the early stages of its loan, it was regularly achieving in excess of the claimed 34mpg combined cycle figure, and even in the hands of less sympathetic drivers will travel more than 30 miles on a gallon of unleaded.

The only costs incurred over its first 18,000 miles have been a service at 12,500 and a new tyre. A nail was spotted in the front tyre by Honda technicians at the local dealer and while a repair would have been the ideal solution, it seemed a replacement was necessary. The following 6,000 miles have been trouble-free.

Market analysts thought highly of the Accord when it was launched last year and even 12 months on, future residual values are comfortably higher than the likes of the Mazda6, Toyota Avensis and Volkswagen Passat.

You have to look at an Audi A4 with a similar power output and price to match the Accord's expected 39% retained value over three years/60,000 miles, according to CAP Monitor. And even then, adding automatic to the Audi dents its RV performance.

So the Honda Accord has achieved the company's aim of raising the perception of the car above the volume upper medium sector. The next few months will tell whether it can build a class-leading diesel. We can't wait.

Company car tax bill 2004/05 (40% tax-payer): £165 per month