DEMAND for diesels is growing in the used car market as buyers get the message that modern heavy oil models perform better and are quieter than older technology engines.

A survey by Vehicle Remarketing Solutions shows that in 80% of dealers, strong retail demand is creating a premium for diesels, resulting in stronger residual values. The survey of 100 dealers from across the UK also highlights regional differences, with rural areas and Northern Ireland showing stronger demand for diesels. It also shows larger engines and higher specification diesels are proving desirable to retail customers.

Jacqui Le Put, sales and marketing director for Vehicle Remarketing Solutions, said: 'Diesels are becoming increasingly popular with retail customers as well as company car drivers. Diesel engines are quieter and have better performance than ever before. These factors, along with rising petrol costs, will continue to boost demand for diesel vehicles.'

The survey showed that Volkswagen Golf GT TDIs, Ford Mondeo and Focus TDCis, Renault 1.5 and 1.9 dCis and Peugeot HDis were popular models.