Despite the diesel scandal, you still fancy a nice little diesel car. A new Volkswagen or an Audi diesel is off the table but, if you loosen the purse-strings, there are some surprising options – if you can bear to drive a compact luxury sport sedan. BMW has been quietly selling diesel 3 Series in Canada for years. Mercedes still plans to dieselize its C-Class, though its launch of that has been delayed by the VW TDI fall-out. Meanwhile, the BMW of compact diesels gets new competition from a surprising direction: a diesel is the standard, base engine in Jaguar's new cub, the XE.