Confused of Total Ownership cost? Petrol vs Diesel

[soori]

As the title suggests, most of the prospective or new car buyers are worried about petrol or diesel cars.

Following are the facts people consider while considering the new car:

1. Cost of Acquisition
2. Monthly Running Cost
3. Interest rate for the loans

The list continues. As most of us know, the running cost of modern diesel cars are cheaper than that of the petrol engine. However, the initial acquisition cost is higher than that of petrol engines and, also the maintenance costs for diesel engines is on higher end.

Here are some of the confusion which arises when considering the above facts:

1. does it make sense to invest more on diesel engine vs the same petrol counterparts?
2. Will it save some gandhi's on the future?

Again the list goes on....

To avoid the confusion and decide yourselves, I've attached a worksheet which will help you to calculate the finance before deciding one.

The excel sheet has been adapted from different sources and modified. Pour in your comments.

[Squid]

This is a good spreadsheet, but I have a few questions. I hope this is the right place to ask, if not, mods please move my reply as you see fit.

1. Petrol prices are deregulated. Which means they will move (more or less) in tune with global crude prices. So what are your views on the same? Would petrol cost Rs 80/Ltr or would it remain fairly constant. For that I think we need to look at the trending of global crude prices for past few decades vis-a-vis taxation and processing costs here in India.
2. Diesel prices are regulated (discounted). How much would they be if they are deregulated? And then how would the equation be?
3. In 2009 when I bought my diesel hatch, diesel was Rs. 35-37 per liter. And now it is Rs. 42/Ltr. Still it's a good bet for me because the petrol prices rose from then Rs. 55 to Rs 63.
4. If the ownership is going to be more than 5years, what are your views on the same?
5. Maintenance costs for diesel have come down drastically. On the other hand, spares and labour costs will keep rising.

There are many more factors. Just trying to get the best view out.

[camchennai]

That was a wonderful spread sheet and I am sure it would help all prospective car buyers. Thanks for taking your time and making it.

[SKC]

Thats Indeed a Nice Analysis and comparison.

Though i love the Diesel Turbo kick-in and the performance. I am still a Petrol head

[Ajaya]

As the title suggests, most of the prospective or new car buyers are worried about petrol or diesel cars.

Following are the facts people consider while considering the new car:

1. Cost of Acquisition
2. Monthly Running Cost
3. Interest rate for the loans

The list continues. As most of us know, the running cost of modern diesel cars are cheaper than that of the petrol engine. However, the initial acquisition cost is higher than that of petrol engines and, also the maintenance costs for diesel engines is on higher end.

Here are some of the confusion which arises when considering the above facts:

1. does it make sense to invest more on diesel engine vs the same petrol counterparts?
2. Will it save some gandhi's on the future?

Again the list goes on....

To avoid the confusion and decide yourselves, I've attached a worksheet which will help you to calculate the finance before deciding one.

The excel sheet has been adapted from different sources and modified. Pour in your comments.

thanks for the spreadsheet. i tried with a petrol price of 90Rs (which is not so far !) and diesel with 42Rs. Now for a monthly usage of 600 to 800km do you think its better to go for Diesel than petrol? also keeping in mind that ownership of the car will be 6 to 7 years?

[shishirbn]

With the electric vehicles coming in and slowly it will start occupying the market, then the petrol and diesel price has to come down. But I feel the better bet would be to buy diesel with that extra cost of acquisition.

[Godfather]

also the maintenance costs for diesel engines is on higher end.

i have no idea and have seriously lost count on the number of people asking me the same thing. So here goes.

for the Ford Endeavour Automatic I pay 3500 Rs for servicing including Oil's and labour charges every 10,000 Kms. thats an avg running cost of Rs 2.85 per km.

IMO thats not bad.

[shishirbn]

also the maintenance costs for diesel engines is on higher end.

People are still thinking that today's diesel engines are of the same quality and build which used to exists 20-30 years back.

[mclaren1885]

Now for a monthly usage of 600 to 800km do you think its better to go for Diesel than petrol? also keeping in mind that ownership of the car will be 6 to 7 years?

Looking at the petrol prices today, I would say go for the diesel. That day will not be too far, when petrol will cost twice as much as the diesel. Its almost there now. Like we have been discussing elsewhere, I doubt the subsidy on diesel will be lifted anytime soon. There are talks of enforcing additional tax on diesel cars to prevent from lifting subsidy on the fuel itself. So diesel cars are likely to get more expensive now.

Once you buy a diesel, you tend to travel a lot more than you usually would.

[Godfather]

thank you mclaren also any government will not risk pulling off the subsidy on Diesel because the farmers and certain industries depend on cheap fuel.

it all boils down to Votes see..