DIESEL cars are still in favour with fleet managers according to a survey by the UK's largest contract hire company. Lex Vehicle Leasing, which has more than 70,000 vehicles on contract hire, has bought almost 10% more diesel cars in the first four months of 1996 than in the same period in 1995.

Between January and April 1996, Lex Vehicle Leasing purchased 3,663 diesels compared to 3,387 in the same period in 1995. This means that around one third of all cars bought in the period were diesels - against Society of Motor Manufacturers and Traders' figures which reveal in the same period 22.1% of all cars bought by fleets were diesel. Lex Vehicle Leasing's figures, exclusively obtained by Fleet News, further fuel the current intense diesel debate amid concern that the 'diesel bubble' of the early 1990s has burst.

Ford and Vauxhall remain the dominant diesel players on Lex Vehicle Leasing's fleet, but Peugeot - in the shape of the new 406 - Audi with the new A4 and Renault are all increasing their share.

In the secondhand market, Lex Vehicle Leasing says it regularly achieves more than 100% CAP 'clean' for diesels through its three disposal sites in Ruislip, Manchester and Stirling. It says turbo diesels were in greater demand than naturally aspirated diesels and in many cases were making £500 more secondhand.