Don't be afraid of the dark

SUVs are still considered by some to be the Devil's own transport but, as Daniel Attwood discovers, buying a more environmentally…

SUVs are still considered by some to be the Devil's own transport but, as Daniel Attwooddiscovers, buying a more environmentally friendly 4x4 will not only help save the planet, it could also save your bank balance

Diesel power has long been favoured as the economical answer to shifting over two tonnes of SUV and now there are others, such as hybrids and bio-fuel 4x4s.

One SUV specialist, Derek Burton 4x4 in Co Wicklow, has just teamed up with local environmental company, Ecomotion, to offer to convert any of its used 4x4s to run on vegetable oil.

"There is a change in buying patterns," explained Mark Burton. "Not one of our 90 used 4x4s in stock run on petrol; they are all diesel and now customers can have them converted to run on vegetable oil for around €1,700."

READ MORE

In fact, the dual-tank vehicles can run on either diesel or vegetable oil, which is some 20 per cent cheaper than diesel.

"We are not doing this from an economical point," explains Burton. "But there is a financial benefit - we feel that the conversion will pay for itself within 10 to 15 weeks."

But some motorists are still falling into a trap of purchasing petrol-powered SUVs without realising that the value of such vehicles falls considerably quicker than their diesel-powered counterparts.

According to Burton, a 2004 petrol SUV will only be worth as much as a similar 2003 diesel SUV. And that difference in value increases as the vehicle ages. "People are just not buying petrol 4x4s, especially used ones."

Traditionally, four-wheel drive vehicles were purchased for commercial and off-road use, but this trend has reversed with up to 90 per cent now being used for domestic purposes.

Currently sales of new SUVs account for just over 10 per cent of the total passenger vehicle market. To the end of last month, almost 14,000 new SUVs left Irish showrooms; over the same six-month period 10 years ago, that figure was just over 1,650.

With demand continuing to grow, manufacturers are offering a greater choice of 4x4s (and pseudo 4x4s that are actually on two-wheel drive but still have that tough off-road look, if not the capability).

Each year the list grows - Fiat, Suzuki, Ssangyong, Kia, BMW, Porsche, Audi, Hyundai, Land Rover, Jeep, Daihatsu, Honda, Mercedes-Benz and Mitsubishi have all launched SUVs in the past 18 months - and Peugeot and Citroën are about to join them later this year with their own SUV offering. But as yet, there are no new bio-fuel SUVs on the Irish market.

Therefore, diesel remains the fuel of choice and, as a result, depreciation of diesel models remains low and demand continues to outstrip supply for some of the most popular models.

And for those who have failed to appreciate that a second-hand petrol 4x4 is about as popular as a Progressive Democrat on polling day, there is a severe shock waiting for them when they come to sell on their beast.

The astute buyer who is prepared to bargain hard in the showroom can still drive off with a bargain-priced petrol-powered 4x4.

As Eoin Lynam, commercial director at GE Money, which produces an annual guide to used car prices, explains: "The really thirsty petrol models are struggling in re-sale terms, though this really creates an excellent opportunity for the canny buyer," he says.

"If you can buy the equivalent petrol model for €5k-€10k less than the equivalent diesel model, particularly in the €20,000-€40,000 bracket, you could be getting a great deal. At 10,000 miles per year, your fuel costs will still only work out at about €1,000 per annum more."

It is the typical family saloon buyers moving into the 4x4 market who are most likely to fall into the trap of buying a petrol version.

"Your average purchaser is typically trading up from a saloon or estate car rather than a mid-size or commercial 4x4. These are true Sloane Rangers and are almost exclusively purchased for image," says Lynam.

It is the benefits of pulling power and low fuel consumption that means diesel 4x4s hold their residual values so much better than petrol models.

Although the message is now getting through - 72 per cent of all new SUVs sold this year have diesel engines under their bonnets. Some manufacturers now only offer their SUVs with diesel engines and others have seen demand for their petrol 4x4s fall off so sharply than they are experiencing up to a 95 per cent versus 5 per cent split in favour of diesel.

Land Rover now only stocks diesel versions of its Discovery, while Opel expects the diesel version of its new 4x4, the Antara, which arrives later this year, to make up 85 per cent of sales.

Other manufacturers and importers offer alternative solutions: Lexus has captured the high moral ground with its hybrid RX400h 4x4, which attracts a 50 per cent vehicle registration tax (VRT) rebate. And now there are companies like Derek Burton 4x4 that are offering used vehicle conversions to bio-fuels.

It is only a matter of time before vehicle manufacturers introduce their own new bio-fuel 4x4s, which will be covered by a full manufacturer's warranty and benefit from a 50 per cent VRT rebate should the current tax incentives remain.

Then it will only be down to the jealousy factor to drive the anti-SUV lobby.