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  • View Poll Results: What car do you have?

    Voters
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    • Petrol

      31 36.47%
    • Diesel

      40 47.06%
    • Both

      14 16.47%
    • Some other

      0 0%
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    Thread: Petrol Car or Diesel Car?

    1. #11

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      krish's Avatar
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      Nice thread rksingh1.

      Agree with the calculations, which is what the general public looks at when buying a car, and most make the mistake of buying a Diesel over Petrol even without sufficient running.

      But there are exceptions to this rule.

      For eg-: Ford Fiesta (Classic), the diesel and petrol prices had a differences of just 50k on-road, when we bought the car in 2008. There is a power difference and the Petrol version is more FTD. But the diesel made more sense here, and specially since, the service costs is also the same.

      Fiat Linea MJD Vs T-Jet -: The Petrol is more FTD and at the initial price which FIAT was selling it as, the MJD was more economical. Service costs doesnt seem to vary much (as per owner logs)

      If I was in the market today for a car, if the Petrol version is more FTD than the diesel and if the initial cost is much lower than the diesel, then I would buy a Petrol car. But, where are the FTD petrol cars? (Except Skoda Laura/Superb)
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    2. #12
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      Agree with you krish. Exception are very much possible!

    3. #13

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      Awesome comparison .. this post will give a clear picture on choosing fuel options .. IMO you could have added the maintainence cost also to the comparison, As per I ve read/heard Diesels are always expensive than the petrols when it comes maintanence I dont have personal experience though .

    4. #14

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      I like this thread from an Economics of fuel options standpoint. However, there is more to buying a Car. At leas, that is what I feel. There are petrol heads who will only buy a Petrol car, no matter what. Lately, some o us have coined the term Dieselhead as we are addicted to the sheer torque. A decade ago, I don't think Dieselheads would be considered to enthusiasts at all. However, that is changing rapidly. I personally feel both fuel options offer something very different and in an ideal world, I would like to own one of each
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    5. #15
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      Quote Originally Posted by mclaren1885 View Post
      I do agree with Ripper. I have a ton of friends who all sold their petrol Swifts. Say the OTR price they paid was 6L for the petrol car. When they sold it, they lost about 2.5-3L from the OTR price only because it was a petrol. While most people including me who sold our diesel Swifts lost about 1-1.5L only
      I've sold both a petrol swift and a diesel swift. I've lost 2.5 lakhs on the petrol and 1.25 on the diesel, inspite of the diesel having run 40000 kms more. Buying the new Figo after selling the Swift VDI was a breeze. I'm now thinking of getting rid of the petrol spark and getting a Diesel truck. But I'm sure I'll get hammered on the depreciation, inspite of the car having run only 8k in two years.
      Why did it run only 8k,while the Figo did 50k? Because ,even if the spark is the only car available at home, I don't drive it, I'll either walk, run or take the bicycle. Muscle power is more enjoyable than the wheezy petrol.
      Last edited by Ripper; 18th Feb 2013 at 13:17.
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    6. #16

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      Compounding is a wonderful thing.
      Also not to forget the relatively higher maintenance cost of diesel cars. Both cars work out almost the same with moderate usage. Choice mostly depends on personal preference. And I am a petrol-head.
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    7. #17

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      Quote Originally Posted by Abhay Zutshi View Post
      And I am a petrol-head.
      Slightly OT but I always wanted to understand what it means to be a Petrolhead. Not trying to hijack this thread, just that I honestly don't know what it really means. I learnt to drive on a petrol but my first car turned out to be a diesel. I just didn't feel at home while learning to drive in a Petrol swift. Then I asked them to switch me to a diesel Swift and I was immediately at ease. I drive a bike that rund on petrol but generates torque much like a diesel. So I really want to understand what is it like to be a petrolhead. Maybe someday I will buy a Petrol Car.
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    8. #18
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      Quote Originally Posted by rksingh1 View Post
      Now, lets think that our fictional user actually went for Petrol. Meaning, he managed to save 1.72L with himself. If he puts that money to a simple FD, then this saving that he did will result in more than 9% per-annum return to him. If you are smart enought, you can get a better return than a simple 9% long term FD on your saving. Shouldn't we include this earning as well? Afterall, its a benefit or extra money you'll get if you chose to go with Petrol variant. If you had taken loan, than this retun will accrue to you in form of saving via installments and assuming you have gone for 2 or 3 yr loan, your entire saving will accrue to you in the same duration. For the sake of negating this interest acruing, lets assume that return that you'll get will be a bare minimum of 8% compount. All FDs give you compound interest. Below is summary of all the calculations we've done so far:
      The FD+Interest part only holds true if it is an all cash deal. For one who is opting for loan, this does not feel logical, since there is no real money in hand to invest in FD. With that in mind, it is a near zero-sum game - not much benefits in either petrol or diesel in the hypothetical scenario you have mentioned.

      For 100% cash payment, the situation would only be slightly better in favor of Petrol.

      Things become far complicated if inflation is taken into account, depreciation, investing the savings gained from each visit to pump on a ongoing basis etc
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    9. #19
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      Quote Originally Posted by sanjayc View Post
      The FD+Interest part only holds true if it is an all cash deal.
      Yes, if its all cash deal then the calculation gets very easy. However, just that in our example, we wish to keep both, I have taken lower margin for both. That is why FD interest return is assumed only 8% [some govt bonds give you 11% I guess], and interest on extra loan is assumed to be around 25% extra only. I do agree, that with exact math the percentage will vary slightly. The loan benefit will definitely not accrue on day 1, but its going to come to you loan duration period.

      Not going to those nitty-gritty, I just wanted to pass on some perspective of how do we go about calculation in choosing between petrol and diesel.

    10. #20
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      Re: Petrol Car or Diesel Car?

      Quote Originally Posted by rksingh1 View Post
      Yes, if its all cash deal then the calculation gets very easy. However, just that in our example, we wish to keep both, I have taken lower margin for both. That is why FD interest return is assumed only 8% [some govt bonds give you 11% I guess], and interest on extra loan is assumed to be around 25% extra only. I do agree, that with exact math the percentage will vary slightly. The loan benefit will definitely not accrue on day 1, but its going to come to you loan duration period.

      Not going to those nitty-gritty, I just wanted to pass on some perspective of how do we go about calculation in choosing between petrol and diesel.
      If it is not full cash purchase, the vain still holds good since the arrival cash needs to be talent as loan. The additional loan amount needs to be repaid including interest which is more than the interest that you get out of on FD.

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