PETROL V/S DIESEL: COMPREHENSIVE COST BENEFIT ANALYSIS

Note: It is advised that we must stick to the topic being discussed, That is cost analysis and related factors. Do not go off-topic by discussing car purchases and such. Such posts will be deleted.

Price differentials

New Swift: 107000

Figo: 970000

When I calculated, price differential between was 90K. 

Seems you didn't kept a tab on interest rate during last 3-4 years. At one point of time it was 6%,for long time interest rate remained stable at 8-8.5 % and last 1 year 11-12%. In long term it will hover around 8-9 %. 

These calculaions are not paid of rigged, based on certain assumptions and i would request you to read all the responses. Rehtoric is good but doesn't lead us anywhere.

@ Santhanam,

If diesel is priced at par, then premium charged by the manufacturers will come down. Cars longevity depends on its maintenance i.e. regular servicing by replacing filters and oil change. If these are replaced regularly, im most cases car will run trouble free irrespective of time but yes with time things do wear out. 

Petrol is refined and NVH levels are lower than diesel and demands lesser maintenance than diesel. 

Choice of car or fuel type depends on personal prefrences and size of wallet. I know many people always but petrol car irrespective of running. 

Its stupid argument to link pollution to diesel in India. Pollution is not because of Indians use XYZ fuel type. Antarctica had ozone hole, no one lives even on that particular continent. This entire argument is postulated and promoted by Developed world. I am not washing my hands from pollution or our share but current global mess is not becuase of India.

Let me cut the long story short, drive both petrol and diesel in all the conditions, see your usage and decide what you want. 

@ Sanklap,

Thank you Moderator for keeping a discussion on course

I would like to mention one point regarding the interest part of the difference in price between diesel and petrol cars. This interest is very much relevant if you are taking bank loan for buying the car.

But if you are spending directly from your pocket, then the interest becomes less relevant. The reason is that though one can get interest for the difference in price if he puts that money in FD or some other investment plan, it generally does not happen that way (unless it is someone who manages his money very well). We end up in spending that money on things which are not all that important.

Whereas, spending extra on diesel model, for all practical purposes becomes a long term investment with savings on fuel as the return on investment.

Tomy

What should be the minimum monthly run for diesel car is diesel car price further increases by 80,000 rupees in this year budget means the diff. in petrol car and diesel car price will be 2 lakhs rupees.

@ VsVs,

Do I need to compute this. Entire calculation is on the thread, rather than Rs 90 K as price differential, put 2 L and then compute. 

We If I am not wrong then, with monthly running of 1000 kms, there will not be any difference in ownership cost for 5 years of ownership. So no diesel till one has running in the range of 1000 kms per month after 80K increase in diesel price but this is unlikely. Lets wait for budget

what is the cutoff run in kilometers per month for preferring a disel car eg; 1200 km? What happens to engine if someone buys a car with 600-800 km running, if we ignore the cost difference & interest etc?

If we ignore cost difference and interest, then you can buy diesel at 600 kms/month and even if you factor in these, you can buy a diesel @ 800km/ month and you will save more than 1L over next 5 years taking TCO.

IF you love to drive diesel for torque, you can always ignore other factors and buy. 

On daily basis I don't do Cost benefit analysis, when I visit Fuel bunk, I spend 1600-1700 per tank (39-41 ltr) whereas, if I had bought petrol, I would have had to pay more than 2600-2700 and coupled with low FE of petrol, more frequent visits to fuel bunks. 

Diesel will get better resale value at the time of sale than petrol due to high initial cost. 

Just one thing here. This is in lines to what Mr Sidh has pointed out. We say that the monthly usage should be higher to recover the extra initial cost and the higher maintenance but diesel cars fetch a better resale too. So if we slightly discount the initial cost say assuming we will get only 50% of the extra 1 lac then we need to recover only 50k of the initial cost and the extra maintenance involved. In that case the threshold to get a diesel car would further decrease, isnt it?

In total accodance with what you said. I did mention about the higher resale value but forgot to factor in this. This will bring the monthly running even lower than 800 kms. 

Thank you Sri for improving. [clap]

Regarding the resale value of diesel cars, I am hearing two distinct views which are exactly opposite.

Some tell me that resale value of diesel is better since diesel engines (if well maintained) has longer life and due the savings on fuel.

Some others tell me that it is too risky to buy old diesel cars since we may not be able to judge the condition of the car easily. If there are any major reparis required (which we may realise only after a few months), deisel can cost a bomb compared to petrol car. Due to this reason, old diesel cars may not fetch the resale value which we expect (unless we are lucky to get  a good buyer).

Frankly speaking, I am a bit confused on this now.

Tomy