Actually, because higher octane retards a fuel’s ignition, it’s use in engines for which it was not designed can actually lead to increased deposits due to incomplete combustion. If your car calls for regular, that is what you should use. In a N/A 850/S/V/C 70 motor, this probably wouldn’t happen because, if memory serves, these motors run a fairly high 10:1 compression ration. Anyways, you should use a fuel that has a proven deposit control package (e.g., Chevron/Texaco).
If you have a newer multi-coil ignition engine, like I have in my T5, it doesn’t really matter what grade of fuel you use. The computer-based ignition system used in these motors is sophisticated enough to control turbo boost and ignition timing to completely prevent pre-mature ignition (knock and ping). The only thing you may notice is slightly decreased performance (since the engine is being de-tuned by the computer). Around town, this will probably result in poorer fuel mileage. For highway driving, there will most likely be no mileage penalty. Personally, I use premium all the time unless I’m traveling on a long road trip (300 or more highway miles), in which case I use regular, and quite frankly I don’t notice a significant difference in performance.
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1999 S70 T5
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