The financial Truth: Petrol vs Diesel

[druva]

NOTE to Mods:
I want to start this thread to discuss ONLY the financial aspects of Petrol vs Diesel car. If you think separate thread is not needed, please merge with the below thread and edit the title too.
http://www.team-bhp.com/forum/techni...vs-diesel.html (The Technical Truth? :Petrol vs Diesel)

Actual Thread:

There are already many threads discussing the pros and cons of Petrol vs Diesel. I so far have been a Petrol head. However, after reading team-bhp for a while and the economics of Indian politics, i am thinking that Diesel may be a good option for my next car.

I do not want to discuss the technicalities of MPFI vs DiCor etc. I want to make the decision about the fuel type for my car - purely on paise value. I am sure quiet a few BHPians would be on same boat.

I have ignored the CNG type:
a) CNG availability is still scarce in Chennai and I see long queues waiting in the gas stations here.
b) I feel the car performance suffers {based on my reading, dont flame me}


Summary of analysis: The monetary advantage of Diesel car is mainly based on
a) Better mileage
b) Cheaper fuel
c) the more daily miles clocked - the faster the returns
d) returns for an average of 65 km per day would be approx 18 months
e) there is no significant difference in part prices between Petrol vs Diesel. {See my manufacturer reference below,
any additional references welcome}
f) service costs would be similar {based on above fact}

Please suggest any other financial considerations one should have - before deciding petrol vs diesel

The model used to calculate the returns of a diesel car. <The spreadsheet can be attached, if required>

Average Price Difference Between petrol car/ diesel car 100000
KM Per Month _____________________________ 1000 2000 3000
Daily KM __________________________________33.33 66.67 100.00
_________Price Mileage
Diesel ______33 15__________________________ 2200 4400 6600
Petrol ______49 10 __________________________4900 9800 14700
Savings Per month ___________________________2700 5400 8100
Break even months required (with 0% interest) ___37.04 18.52 12.35

So it makes sense to buy the car if you drive atleast 60 km per day.
You can expect to get the returns back in 1-2 years time (with interest)

Summary total part prices: Petrol Vs Diesel
The difference in part prices between petrol and diesel seems to be marginal and looks to me can be ignored.

Source: (Mahindra Renault Logan) Welcome to Logan

Diesel
Logan Fiesta Verna Indigo Swift
13638 20187 15980 11959 11322

Petrol
Logan Fiesta Verna Swift Getz
13638 19810 15980 11919 11668

P.S: Do I get any bonus points, if I dont use even a single smiley?
NO? So my quota of smilies

[phamilyman]

Umm, wasnt it always pretty well known? But you rehashed it well

[Eddy]

Just one point. It should be noted that the cheapest CRDI engine today is the Swift LDI. (Too late in the night. Can't think of any. If there is, then my post makes no sense ). OTR of the LDI in Delhi is approx 5.2 L.

Now your analysis would hold good if you are considering a petrol swift (LXi). But it will not hold if you end up buying a petrol car in the Sub 4 lakh category.

Eg: Santro GVS is available for 3.9L OTR. So the price difference goes upto 1.3 lacs without the Poer windows that the santro offers.

To summarise, you may have to pay more than a lakh just to buy a CRDI over a normal petrol hatch.

[hondadude]

There was a thread which had this information and more, including a spreadsheet to calculate when buying a diesel over petrl makes sense (financially). I tried searching for it but couldn't find it. If someone knows which thread was that, please share.

[Eddy]

I think it was a thread discussing the launch of the Swift diesel. Too lazy to search for it though. Good night

[DirtyDan]

Originally Posted by druva

e) there is no significant difference in part prices between Petrol vs Diesel. {See my manufacturer reference below,
any additional references welcome}
f) service costs would be similar {based on above fact}

Factors I do not see accounted for:

1.)A diesel never needs a tune up.
2.)A diesel will normally outlast a petrol engine by a
considerable margin. I have driven diesels that have
300,000 kilometers on them and they have never been
opened and they still run like new. This kind of quality
is, of course, manufacturer dependent.

Of course, peripheral parts will have to be changed on an old diesel. Gear boxes, water pumps, etc. last the same time as a petrol.

[binz]

Diesels hold their resale value better than petrols.

[blue_pulsar]

Originally Posted by Eddy

Just one point. It should be noted that the cheapest CRDI engine today is the Swift LDI. (Too late in the night. Can't think of any. If there is, then my post makes no sense ). OTR of the LDI in Delhi is approx 5.2 L.

Isn't it Indica DiCOR now? Not sure about the exact price though. But am sure its less than 5L.

[hrman]

Originally Posted by binz

Diesels hold their resale value better than petrols.

This is bound to happen since the diesel variant of the same manufacturer is priced higher than petrol during initial purchase . But is you go to sell a 2 year old Indica DLS(3.65 L ex showroom) and a wagon R LXI (3.7 Ex-showroom), the wagon R will fetch at least 20 k more than the Indica if not more. I speak from personal experience.

[TrueDreamer]

Indica DiCoR is Rs.4,21,943/- Ex Showroom,Hyd. Should come to Rs.4,76,261/- On Road without any discounts and accessories calculated.

[gemithomas]

Originally Posted by blue_pulsar

Isn't it Indica DiCOR now? Not sure about the exact price though. But am sure its less than 5L.

It is. It comes at 4.75L OTR!! Adn gives you more space abd better ride comfort.

[BUSA]

druva - You forgot to mention one things. Diesels are more fun to drive then petrols, they have more torque then petrols.

[jaibir]

It might make sense to compare fuel saving vs. extra EMI as a thumb rule. on that metric, you'll find it makes sense even for slightly lower running

I dont think the Indica vs Wagon R resale comparison is fair considering MUL cars in general have much better resale value than Tata cars. You could look at the resale on the old Zen Diesels - I believe they sell quite well in the used car market.

Originally Posted by BUSA

druva - You forgot to mention one things. Diesels are more fun to drive then petrols, they have more torque then petrols.

You have to exclude some of the Tata diesels from that. Not sure about the newer generation though - haven't driven the Turbo or the DICOR

[BUSA]

Originally Posted by jaibir

You have to exclude some of the Tata diesels from that. Not sure about the newer generation though - haven't driven the Turbo or the DICOR

The Indica Turbo was said to be very fun to drive, till the Swift D came.

[druva]

Thanks for the replies.

To be honest, I have prepared this to help me in decide my next car.
Thinking on those lines, I would not want to compare Maruti Petrol vs Tata Diesel (or other combinations). Lets say, I zero on a particular model - should I go for Petrol or Diesel version is the question.

I took the following prices from Carwale.

Verna i -- 6.56
Verna VGT - 7.91

Getz GVS - 4.49
Getz GVS Crdi - 5.97

Logan GLE 1.4 - 4.61
Logan DLE 1.4 - 5.47

Swift VXi ABS - 4.67
Swift VDi ABS - 5.44

Indigo GLX-BS III - 5.02
Indigo LX Dicor BS III - 5.89


It looks like except for Hyundai - other manufacturers are keeping a premium of 80 k for Diesel vehicles. Hyundai is keeping a whooping 1.4 lac premium. I didnt get into the pains of comparing the features of the above models. But looks like I will keep away from Hyundai Diesel (I currently own a Santro - Petrol).