DIESEL is in demand among used car buyers, according to auction experts, who add that the resulting higher residual values are leading to lower running costs for fleets. British Car Auctions has reported strong demand for diesel vehicles and through its online Auction View service has revealed that average prices paid for diesel vehicles are well above CAP clean prices.

For example a 97R Audi A4 1.9 Avant TDI with 79,000 miles on the clock sells for an average of £10,183 at BCA, compared to a CAP clean price of £8,025. Tom Madden, customer affairs director, said: 'The excellent fuel economy and improved service intervals mean lower running costs, while overall reliability and longevity will always appeal to the cost conscious motorist.'

Glass's Guide has backed the findings, saying there were premiums of between £500 and £4,950 on diesel models.