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Old 4th December 2011, 21:19   #31
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Default Re: Break even in diesel with just 450km/month (a different approach)

Here comes the real deal

Changes
1. EMI option included: It not only assumes the EMI you are paying (at 14%) but also calculates the amount you could have saved if those EMI were put in a Recurring deposit savings (at 8%).

2. Diesel FE changed to 18. Which gave it some benefits taken away by the EMI factor.

3. Format: All the variables are on the right. You can fiddle with them.

4. In- case you are looking at the total cost before the entire loan is payed you will not get correct result.

5. Net result the break even it at 600 instead of 450. How ever you can change the parameters according to your need and see what works for you.


Please Note: Do not try to decipher the formulas. You will go nuts. I made them a few days back and now I am just .
Attached Files
File Type: xlsx Petrol vs diesel.xlsx (15.0 KB, 315 views)

Last edited by oxyzen : 4th December 2011 at 21:24.
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Old 4th December 2011, 22:49   #32
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Thumbs up Re: Break even in diesel with just 450km/month (a different approach)

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Originally Posted by oxyzen View Post

For most but not for all cars. Eg Polo, Fiesta classic, Linea T-Jet, Corolla, and that's about it.
Yeah but the criteria changes in those cases where analysis and economics takes the backseat. Polo 1.6,Fiesta 1.6,Corolla 1.8 and Linea Tjet are specifically brought by performance hungry people who are least bothered about the economy. Their counterpart Polo 1.2,Fiesta 1.4,Corolla 1.4 and Linea 1.3 are barely 60-70Ks higher and hence the breakeven comes lot quicker and ofcourse fuel economy difference is quite high. Just like Polo 1.6 will return you 9-10 kmpl compared to 17-18 kmpl by 1.2 TDi in similar conditions.

So its like Performance petrol v/s Economical diesel.The scenario changes.

Quote:
Thats why I am surprised with Beat. It has lesser capacity. Why could not they price it lower or same as the petrol. Look at figo; there it justifies its premium with extra 200cc.
Beat is one car that doesn't justify equation. I agree

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Anything can happen in this country.
Specially with the current govt. 2G scam, commonwealth scam, 50% kota, inflasion and what not. Anything that can increase corruption is whole heartedly accepted by govt. Dont just write off dual pricing.
I sincerely hope it doesn't happen. Special tax on diesel cars is fine.
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Old 4th December 2011, 23:23   #33
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Default Re: Break even in diesel with just 450km/month (a different approach)

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Originally Posted by sharadmumbai View Post
Great Analysis but why have u taken more maintenance for diesel vs petrol. Nowadays the service intervals are largely same as well as 1lakh km abd 2/3 year waranties take care of the large expenses.
Diesels are & will always be more expensive to maintain. Even the batteries are 2X expensive. So are the injectors. Then comes turbo. Diesels still do require more maintenance but it is not like the old unreliable diesels which spend most of their time in workshops.

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Originally Posted by sharadmumbai View Post
I am selling off my Ikon for 85k and already bought a 2007 end Ford Fusion TDCI for 3.7L on cash which had 35k on the odo.
That is a bargain!! I am looking for a fiesta 1.6 with similar odo readings but everything is above 4L. Absolutely ridiculous.
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Old 4th December 2011, 23:27   #34
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Default Re: Break even in diesel with just 450km/month (a different approach)

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Originally Posted by S_U_N View Post
Thanks oxygen. Will wait for the new version. Meanwhile, I must say, that with a Diesel car, there is a tendency to travel more. With a petrol car, one thinks twice and if possible goes through a train. In short, the running goes up magically with a diesel car, whereas with a petrol car, you have to control the urge to drive.
That IMHO tilts the balance back to petrol's side.
Very true. When I had a petrol car, the usage was around 1000Km per month and in 5 years of ownership I did 9 long trips.

Now in diesel car, the usage has drastically gone up, its 2200Km per month and in 7 months of ownership I have already done 8 long drives. Since I love driving, I have no regrets even though I am not saving anything in my monthly fuel expense.

IMO, If someone is moving to diesel car just to save money then while doing these break even calculations its better to increase the usage of diesel car. If your average drive in petrol car is 500/month then for this break even calculation it is better to increase the usage of diesel car to 700-750/month and then do the calculation. I feel this will give a better picture.
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Old 5th December 2011, 09:50   #35
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Default Re: Break even in diesel with just 450km/month (a different approach)

Another variable that will come into play is ever increasing fuel prices.

The price of petrol was 1 when I started college in 1969, went up to 5 in 1983, rose to 40 not so far back, and is now 70. It will keep rising to 100 and more in future. Even if there is no differential in price, the superior FE of diesel will come in the equation and at stratospheric fuel prices that will be a game changer by itself.
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Old 5th December 2011, 13:17   #36
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Default Re: Break even in diesel with just 450km/month (a different approach)

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Originally Posted by arun_josie View Post
Very true. When I had a petrol car, the usage was around 1000Km per month and in 5 years of ownership I did 9 long trips.

Now in diesel car, the usage has drastically gone up, its 2200Km per month and in 7 months of ownership I have already done 8 long drives. Since I love driving, I have no regrets even though I am not saving anything in my monthly fuel expense.
+1 to that, same was with me, when I used to own petrol car, I did very less long trips in that even I love to drive just becasue of fuel expenses, now I own a 1.2 TDI and in last 7-8 months I have done lot of trips, even recently attended two functions of my cousin's marriage doing two trips of 200 kms each time rounded with saving one working day in between, otherwise I had to stay for there for three days or had to miss one function - now family members and relatives are happy for those attendances, wifey is happy for more vacations/holidays together which were non-existent in last 6-7 years and so me myself is also tension free and happy and now can enjoy driving too which I love to do.
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Old 5th December 2011, 22:27   #37
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Default Re: Break even in diesel with just 450km/month (a different approach)

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Originally Posted by Aroy View Post
Another variable that will come into play is ever increasing fuel prices.
That is taken into account. 8% increase every year compounded.


Quote:
Originally Posted by arun_josie View Post
If your average drive in petrol car is 500/month then for this break even calculation it is better to increase the usage of diesel car to 700-750/month and then do the calculation. I feel this will give a better picture.
Well to be honest thats not fair, but in this latest excel you can do it. Pretty simple.

Last edited by oxyzen : 5th December 2011 at 22:29.
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Old 5th December 2011, 22:30   #38
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Default Re: Break even in diesel with just 450km/month (a different approach)

OK OK If you like a diesel; go ahead and get one why such devious calculations, don't worry no one is going to reprimand you for that.
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Old 5th December 2011, 22:33   #39
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Default Re: Break even in diesel with just 450km/month (a different approach)

It will be interesting to see a
petrol v/s cng/lpg v/s diesel comparo based on total cost of ownership and see if cng/lpg is a viable alternate or not
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Old 6th December 2011, 00:30   #40
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Default Re: Break even in diesel with just 450km/month (a different approach)

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Originally Posted by Turbokick View Post
It will be interesting to see a
petrol v/s cng/lpg v/s diesel comparo based on total cost of ownership and see if cng/lpg is a viable alternate or not

Simple answer - if you have reliable supplies and can live without the boot space - nothing beats CNG in costs. Nothing.

LPG is only nominally cheaper and availability is not only spotty at present, it is likely to remain spotty (it is a petroleum product - CNG is not).
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Old 6th December 2011, 09:43   #41
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Default Re: Break even in diesel with just 450km/month (a different approach)

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LPG is only nominally cheaper and availability is not only spotty at present, it is likely to remain spotty (it is a petroleum product - CNG is not).
I think what you meant is that LPG is produced during crude distillation (so tied to crude prices), while CNG is natural gas and priced separately. As CNG is a major feed stock it is also tied (though loosely) to the crude oil prices, hence we should expect its price to follow the crude prices. That said at present the running costs using CNG is half that of diesel.
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Old 6th December 2011, 12:04   #42
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Default Re: Break even in diesel with just 450km/month (a different approach)

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Originally Posted by Aroy View Post
I think what you meant is that LPG is produced during crude distillation (so tied to crude prices), while CNG is natural gas and priced separately. As CNG is a major feed stock it is also tied (though loosely) to the crude oil prices, hence we should expect its price to follow the crude prices. That said at present the running costs using CNG is half that of diesel.

That's right - that's what I meant.

CNG prices are separate, even though it is feedstock for many industries and is replacing coal in power generation, it is way cheaper than crude (on a thermal unit basis) and will continue to remain so.

In the last few years many sources of natural gas have been discovered and many have become viable. Advances in cryogenics (and rising prices of crude) have made transportation feasible both technically and commercially.


CNG running costs are not only cheaper, the conversion of the engine costs about half the price difference for diesel - and you still retain the option of running you vehicle as pure petrol whenever you want to.

In fact in today's scenario anybody living in NCR can save a lot of money (if he is so inclined) by buying a petrol vehicle, take advantage of steep discounts available, convert to CNG and run on CNG. Gas availability is good enough in NCR, if the person is not travelling out of NCR much he wouldn't notice any difference.
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