We have recently retired and are planning to spend around £20,000 on a new or nearly new car. Being conscious of escalating fuel costs we were planning to buy a diesel engine, but are now confused by the various arguments for petrol versus diesel in the context of overall running costs over a number of years.

Normally we drive five miles each way to town three times each week and at least one 100+ miles journey every month. We would expect to keep the car for 6-8 years with an annual mileage of 6,000 to 8,000 miles. Taking into account fuel costs, road fund license, insurance, servicing/maintenance costs and the much-publicised DPF issue, what would you recommend in our situation?

We are looking for a 5-door car with some quality build and want a good driving experience. Our shortlist includes BMW 1 Series, Volkswagen Golf and Audi A3 (all in 5-door versions). Your thoughts on those, or any alternative suggestions would be much appreciated.