USED car buyers will no longer pay a premium for diesel cars, according to one of the UK's leading car retailers. Richard Lownsborough, who heads up Reg Vardy Group's used car buying division, said the price advantage which diesel had enjoyed was no longer there.

'There is no premium between Cavalier or Mondeo petrol or diesel, and I would think equality will continue. I do not see any reason why diesel should sell at a discount,' he said. Regional differences do exist, however, with some specific local markets much more receptive to diesel than others.

And what could restore a premium, however, is greater public appreciation of fuel costs, with fuel consumption performances varying by as much as 20% between models in the same sector.