NEW research by a leading vehicle leasing firm shows almost 63% of financial directors expect to see an increase in the number of drivers choosing a diesel option under the 2002 carbon dioxide-based company car tax. According to the survey, carried out by Hertz Lease, 32 of the 51 financial directors asked to take part believe the new tax regime will see more drivers opting for diesel cars.

Gary Haworth, commercial director at Hertz Lease, said: 'Diesel cars are shedding their image as low performance alternatives and cleaning up their sulphur emissions. Drivers with an annual mileage of more than 18,000 miles will lose their high-mileage benefit and pay more tax under the new tax regime, especially if their car has high emission levels. Driving low emission diesels will result in a lower tax rate and counter the loss of the high-mileage tax benefit.'

The survey showed the majority of petrol car drivers could offset the loss of their high-mileage tax benefit by switching to a diesel and benefiting from a lower rate of tax.