Diesel car or Petrol car?

I have been contemplating on buying a car lately and been doing the R&D on the many available options. And I have been very confused with the long list of jargons and “theories” those smart-a$$ marketing guys throw at me. One of them have been that buying a diesel car means saving money big time. Some how, i couldnt agree with this idea. And today, I stumbled across this analysis which seemed pretty level-headed to me. Am posting it here for anyone else who might be interested. The original was at http://www.mouthshut.com – one of the best online review spots. 🙂

Have you ever wondered why diesel cars are priced higher than petrol? Is it because diesel engine is complex and has high weight? I guess no. As far as my guess goes its purely a pricing strategy. Diesel cars fetch more profits to manufacturers as they have compelling low maintenance logic.

Lets assume following case for petrol and diesel car.

Petrol Car:

Price : 6 lacs
Petrol Price: 55
Mileage: 12 km/ltr
Cost Per KM: 4.6 Rs
Your average daily km: 20

Diesel Car:

Price : 7 lacs
Petrol Price: 35
Mileage: 16 km/ltr
Cost Per KM: 2.2 Rs
Your average daily km: 20

Price difference : 1 lacs

To cover this price difference between diesel and petrol, you need …

KM Per Day – Years
20 – 5.7
40 – 2.8
60 – 1.9
100 – 1.14

If you lower the diesel price or lower petrol mileage, you may end up breaking even bit early. In a nut shell, go diesel if you average 40km or more. This way you will start reaping benifits of fuel savings earlier.

Now lets take case of ford fiesta vs maruti zen

Zen:

Price : 5 lacs
Petrol Price: 55
Mileage: 12 km/ltr
Cost Per KM: 4.6 Rs

Fiesta:

Price : 8 lacs
Petrol Price: 35
Mileage: 18 km/ltr
Cost Per KM: 1.94 Rs

Price difference: 3 lacs

For fiesta to catch up this price difference, it would need ..

KM Per Day – Years
20 – 15.7
40 – 7.8
60 – 5.2
100 – 3.11

But you cut this time by half assuming that fiesta provides much better luxury and performance!!!

[ Read more… ]

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  1. #1 by ashwani ahuja on April 5, 2007 - 5:41 am

    u r absolutely right.i was just planning to buy a diesal car,but now i am clear that i shouldnt go for that as my avg running is hardly 25 -30 kms/day.secondly i m interested to keep a car not more than 2 yrs.thanks for the comparative analysis.

  2. #2 by vbehere on May 25, 2012 - 9:43 am

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