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Old 16th March 2008, 23:35   #1
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Default Palio 1.6 Sport Vs Palio MJD- pure economics

With the intention of buying a car I have narrowed my choices down to either Palio or Getz. But Getz being a little expensive I sat down to do some calculations between the Palio MJD and the Palio Sport 1.6. I wanted to go for MJD purely because it is diesel powered and thought would save me some money in the long run. But on the contrary and to my great surprise my calculations show it to be more expensive than petrol. Here is how I got the numbers-
**************Palio 1.6 ****Palio MJD
Initial cost ------ 4,50,000 ---- 5,50,000 @Blr prices
FE approx -------12kmpl ------ 16kmpl
Cost/km ---------4.41 --------- 2.32 Taking petrol @53/lt and diesel @37/lt
Fuel costs/year - 53,000 ------ 27840 for 12,000km/yr
Extra EMI/year -- NA -----------35246 @12% (for 1,00,000 diff in prices)
========================================
Total cost/year -- 53,000 ------ 63,086 !!

I have taken only the cost which vary b/w them and I have assumed equal maintenance costs for both versions. The FEs might be slightly more or less but it doesn't change the equation. So accordingly I will be better off by Rs.10,000 every year for at least 5 years which is the duration of the loan.
I am seeing that in many threads people are suggesting buyers to go for diesel even for <1000km/month but this seems totally wrong.
This makes it look that to justify MJD/diesel, one would have to do a lot more than 1000km/mo maybe more in the range of 2000-2500km/mo.
Let me know if there is some flaw in my calculations; the numbers might vary for different locations but the argument would still hold I believe.


cheers,
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Old 17th March 2008, 10:49   #2
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Just to help you arrive at the right decision heer are some figures

Highway : City Driving = 70:30
Fuel Consumpstion Highway / City (100% AC)
Palio 1.6 - 9/13
Palio MJD - 12/16

Now the fuel costs are
Palio 1.6 - 64143/-
Palio MJD - 34225/-

* The FE figures are from Palio 1.6 owners thread. I dont own one.
* The MJD might be more Fuel efficient.
* As these are new gen diesels I assume the maint costs to be similar to petrol.
* You have to put a monetary value for yourself for the FTD factor of 1.6.
* The reasle of 1.6 all other factors being same will be atleast a lac less than MJD

Now do the maths!!!
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Old 17th March 2008, 11:05   #3
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Madmax, that is a good calculation. To be more realistic, keeping a typical urban user in mind, the city to highway ratio should be 70:30, not the other way round.

Regardless of resale, the 1.6 is a pleasure to drive compared to the MJD, as recent reviews of the MJD indicate issues like turbo lag, bad gear shift,etc
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Old 17th March 2008, 11:12   #4
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Two things to make your decision more complicated:

1. Please include resale value in your analysis.
2. Wont you put shell diesel in your new MJD? BTW, it is 46 rs to a litre in BLR .
Quote:
Originally Posted by zaks View Post
Cost/km ---------4.41 --------- 2.32 Taking petrol @53/lt and diesel @37/lt
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Old 17th March 2008, 11:15   #5
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The resale alone will swing it back in favour of the MJD. Most used 1.6 Palios that I have seen for sale have been in the 1.4 - 1.8 lac price band. The only one that sold for higher than that was a limited edition sparingly used example.
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Old 17th March 2008, 12:33   #6
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Sorry typo, It is city to highway only 70:30!!!
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Old 17th March 2008, 12:54   #7
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i think for a monthly running of upto 1000 kms, this is a tough decision to take purely on economics,no?
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Old 17th March 2008, 13:03   #8
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It is correct that the lower the running the lower the advantages of a diesel in pure cost terms. Of course diesels have their own inherent driving advantages.

However as GTO pointed out, you can be sure of one thing though. When you finally sell your car that 50000 difference that you paid over the years may very well obliterate to a large extent in terms of valuations.

But yes, there is no arguing the fact that for 3 digit running figures per month (ok, 1000 is but 1km more) you can look at the petrol options with as much surety as the diesels.
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Old 17th March 2008, 13:12   #9
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car is about indulging oneself. pleasure ka item hai.

no way can economics capture the smile of 50,000kms :-)

choose your smile
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Old 17th March 2008, 13:15   #10
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This is the simple reason why we say diesel are taken for two choices nowadays.
one is long running the other is pure power and performance.If both these are out of question then go for the petrol.Diesel gives you that kick in the $$$ feeling of power.
ram
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Old 17th March 2008, 13:23   #11
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Default earlier comparisons

http://www.team-bhp.com/forum/indian...tml#post398485 (Maruti Swift diesel @ Rs 4.68 lakh) (Maruti Swift diesel @ Rs 4.68 lakh)


http://www.team-bhp.com/forum/what-c...vs-diesel.html

Can the thread be closed?
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Old 17th March 2008, 14:22   #12
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I think the initial comparison has been done & answerers given. For detailed analysis read through the threads posted by Dhruva.

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