Diesel to be the main beneficiary of tax changes

FORD AND Mazda have joined the ranks of car firms to issue their new price lists for after the July 1st tax changes

FORD AND Mazda have joined the ranks of car firms to issue their new price lists for after the July 1st tax changes. As expected, the big beneficiaries are diesel models in both car lists.

While small-engined petrol modest fall by a few hundred euro, the price of larger diesel engines are starting to make mid-range petrol options uneconomical.

Ford's prices demonstrate the case in point. For the Focus range, for example, the 1.8-litre diesel version is now cheaper than the 1.6-litre petrol. That price difference extends up to the 2-litre diesel automatic, which is priced below the 1.6-litre petrol automatic.

There are also some anomalies. For example, the 110bhp 2-litre diesel is now more expensive than the higher powered 136bhp 2-litre diesel version, due to the lower powered - and older - engine offering up more CO2 emissions and falling into the 24 per cent tax rate.

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The differences are less pronounced in the Mondeo range, although here again significant savings are being made on diesel versions over their petrol equivalents. Under the new prices there will now be as little as €70 in the difference between the 1.6-litre entry-level petrol model and the 1.8-litre diesel LX version, which will be priced at €26,665 after July 1st. Thats partly due to the fall in the price of the 1.8-litre model by €1,830 on the entry-level version.

Mazda claims a price reduction on 30 models. All Mazda2 models record a fall in price of between €900 for the entry-level 1.3-litre and €2,200 for the 1.5-litre five-door Sport version.

Mazda3 prices benefit less from the changes overall, with €500 rises in the 1.4-litre models, although the 1.6-litre diesel price falls by €2,500, making it likely to be the future favourite in the range.

For the Mazda5, diesel will be the big seller, with prices down €2,300 for the 2-litre diesel version, now only €1,000 more than the 1.8-litre petrol.

Arguably the biggest beneficiary is the Mazda6 range, with prices for every version recording a fall of between €500 and €3,100. For example, the 2-litre diesel Executive version is now €27,995 from €31,095.

Sadly some popular favourites record price rises. The MX-5 goes up €1,100 to €34,995 for the roadster while the RX-8 192bhp version will be €48,995, up €7,000 on the pre-July tax change price.