Diesels Equal Savings (For Now)

Washington DC May 29, 2008; The AIADA newsletter reported that with the price of diesel fuel pushing $5 a gallon, many Americans might not think this is the best time to buy a diesel car or sport-utility vehicle. But they'd be mistaken.

The fact of the matter is that even though the price of a gallon of diesel has climbed more than 55 percent in the past 12 months, diesel cars still offer better gas mileage—and savings—than regular cars. That's because diesel engines are much more efficient than gas engines, delivering up to 25 to 30 percent more miles per gallon.

BusinessWeek reports that that's good news for German import brands like Audi, BMW, Mercedes-Benz, and Volkswagen, who are launching a wave of new clean-diesel cars in the U.S. starting this fall.

However, the sharp rise in diesel fuel has cut deeply into the diesel cost advantage in miles per gallon. There is real concern that unless refineries start producing more diesel, the prices will escalate beyond the point that a diesel can offer any cost benefit.

SEE ALSO: 10 Diesels That Can (Still) Save You Money