If you think that going diesel for your company car will pay for itself, think again.
Even if you do 20,000 miles per year of your own miles, choosing a diesel SEAT Ibiza could cost you £24 per month more than the petrol equivalent when you add together BIK tax, leasing costs and fuel spend.
Avoid diesel SEAT Ibiza for lowest tax bills
Not only is the 95hp 1.6 TDI FR diesel around £35 per month more than the petrol 95hp 1.0 TSI FR equivalent to lease, but the diesel would actually cost a lower-rate taxpayer £15 per month more in BIK tax from April 2018.
That’s because the amount you’re taxed on – the car’s P11D value – is an enormous £2,460 higher for the diesel – but the TDI’s CO2 emissions aren’t that much lower. Throw in the 4% diesel surcharge that kicks in from April 2018 and you’ll have to pay 24% BIK for the diesel compared with just 22% for the petrol.
To add insult to injury, the diesel is slower to accelerate – although only marginally – and less refined, proving somewhat gruff on the move.
Diesel Ibiza not as good to drive as petrol equivalent
The diesel Ibiza remains a pleasant car to drive, but the noisier, rougher and less willing engine detracts from the car’s appeal.
Unless you do a huge amount of miles and have to have a diesel – whatever the financial cost – there’s little reason for company car drivers to willingly choose the Ibiza diesel.
Yes, cheaper diesel models than this one are available, but the petrol equivalents to these remain far cheaper and in lower BIK bands. As a result, it’s the turbocharged 1.0-litre petrol models that remain the smart choice.
