Think Twice About Financing A Diesel Car

Diesel automobiles feature better fuel economy than petrol autos, resulting in many UK diesel car finance deals each year.

However, UK car buyers may want to reconsider taking out car loans for diesel automobiles because the price of this fuel is expected to soar.

A few days ago, the largest independent oil refinery in Britain, the Coryton facility in Essex, entered administration.

Coryton supplies approximately 20 percent of fuel used within southeastern England. Parent company Petroplus, based in Switzerland, declared insolvency, bringing deliveries to a standstill.

The average diesel price is 142.21 pence/liter, just one 1 pence/liter shy of the May 2011 record of 143.04. Both automobile groups and energy analysts fear that the shutdown of Coryton will lead diesel fuel prices to skyrocket.

An AA spokesperson stated that the motoring agency expects the price of diesel to exceed its previous high. Energy Quote lead analyst Damien Cox predicted that diesel prices will be impacted over the short-term.

He disagreed with media reports of potential fuel shortages, saying that though short-term supply may be affected, contingency plans should cause supply to be normal over the long-term.

The shrinking British economy may be bad in general but it could be good for diesel car owners. Mr. Cox said that the restricted economy has decreased diesel fuel demand.

Therefore, even near-term restrictions in the fuel supply will not be felt as severely. Drivers who own diesel cars will still be able to fill up- it will just cost them more money.

Consumers in the market for a diesel car may want to wait a bit. Car loans for diesel autos may be more attractive after a predicted temporary spike in diesel fuel costs subsides.

In the meantime, they can shop for the best good or bad credit car finance deals and get pre-approved to streamline the purchasing process.