Jaguar XE: why now’s the time to buy a petrol

  • New Jaguar engine boosts economy by 20%
  • Annual company car tax drops by £870 per year
  • Power rises by 10hp for greater acceleration

Choosing a petrol saloon might seem like an odd choice when diesel versions offer much greater claimed fuel economy. However, opting for a petrol Jaguar XE not only saves you more than £4,000 compared with an equivalent diesel – with correspondingly lower PCP finance monthly payments – but the petrol engines have also just got better.

That’s because Jaguar has replaced existing the bought-in 2.0-litre turbocharged petrol engine with its own latest generation unit, which offers the prospect of a 20% increase in fuel economy alongside a boost in power and torque. This means that unless you cover huge distances each year – where the pricier, but more economical, diesels make more sense – the smart money goes on the petrol versions.

New Jaguar XE petrol engine offers 7.4mpg higher fuel economy

While the outgoing 240hp turbocharged 2.0-litre petrol XE returns mediocre claimed fuel economy of 37.7mpg, this jumps to a more palatable 45.1mpg with the new 250hp engine. Similarly, claimed CO2 emissions have fallen from 179g/km to 144g/km, not only making the XE better for the environment but drastically cutting BIK company car tax bills.

The added muscle, meanwhile, slashes 0.2 seconds from the 0-62mph time, with the new car covering the sprint in a speedy 6.3 seconds. A jump in torque at low engine speeds, on the other hand, should make the car more refined and relaxing to drive, too, as the standard-fit automatic gearbox shouldn’t have to change down as often as before.

PCP finance: 250hp petrol Jaguar XE undercuts diesel equivalent by £109 per month

Proving the relevance of this new petrol model are the finance costs. Opt for the rear-wheel drive 250hp petrol in R-Sport trim and you’ll save yourself a whopping £159 per month in monthly payments over the most similar diesel. That’s enough of a saving to finance a Skoda Fabia 1.0 60 S – with no deposit – with the change.*

That means costs of £400 per month for the petrol compared with £559 for the all-wheel-drive-only 240hp 2.0-litre diesel XE (on a three-year contract with a £4,000 deposit and 10,000-mile-per-year allowance). Even if you opt for the all-wheel drive 250hp petrol equivalent you’ll still save yourself £109 per month.*

Want to find out more about car finance? Take a look at the stories below:

This makes the petrol models a wiser choice than the diesel, with finance costs reflecting the £4,480-£6,580 list price saving (varying depending whether you need all-wheel drive for the petrol or not).

Get a more powerful petrol for less than the diesel XE alternatives

The premium for going diesel with the Jaguar XE is so high that you can get a much more powerful petrol model – and even add £2,100 worth of all-wheel drive – and pay substantially less per month.

The entry-level 163hp manual diesel XE will set you back £409 per month (on a three-year contract with a £4,000 deposit and 10,000-mile-per-year allowance) compared with just £400 for the 250hp, automatic petrol. Meanwhile, you can get this powerful petrol model with all-wheel drive for £18 less per month than the 180hp diesel, which lags far behind in performance terms.*

There’s a further bonus for choosing the 250hp petrol over the 240hp diesel, as the latter will cost you an additional £1,550 in VED car tax in R-Sport trim – with £310 per year charged for the diesel from the age of two to six years old, as its list price is more than £40,000.

Looking to read more about the Jaguar XE? Have a look at these articles:

Road test: All-wheel drive Jaguar XE 2.0d R-Sport

Assessed: Jaguar XE full review

Facts and figures: Jaguar XE 25t 2.0 250hp

*Deals are correct at time of publication. Everyone’s financial circumstances are different and credit is not always available – Parkers cannot recommend a deal for you specifically. These deals are indicative examples of some packages available this week.