Team-BHP - Petrol Vs. Diesel (Swift Dzire)

Maybe the Petrol Vs. Diesel debate has been discussed to death before. However, the usual quote of breakeven if its 20000km/yr (or near about) travel to break even for diesel prompted me to do some calculations.

I've published a Google Spreadsheet comparing Swift Dzire Petrol and Diesel.

In the spreadsheet, I've assumed the following (for my case)
* Period for calculations - 5yrs
* Average yearly usage of ~6500km, increasing yearly by 10%.
* Petrol price increasing by Rs.2/- every year, beginning at Rs.52.
* Diesel price increasing by Re.1/- every year, beginning at Rs.37.
* Average mileage of Swift Dzire Petrol @ 11km/ltr and Diesel @ 14km/ltr (adopted from Swift's mileage according to IndiaAutomobile.com).

The sheet is also downloadable in XLS format from here. It provides an option to include/omit yearly distance increase, include/omit fuel price increase, etc. Feel free to play with it.

I have not included
* maintenance charges
* interest calculations on loan and related offsets

The calculation shows me that with a 10% increase in distance per year, break even occurs when first year travel is about 7000km/yr.

Without a 10% yearly increase in travel, break even occurs at about 8700km/yr.

Both of these are a far cry from the oft-quoted 15-20K km/yr mentioned frequently as break even for diesel vehicles. Note that I'm considering a diff of about 1Lac between petrol and diesel vehicles. For anything more than this, the break even point obviously increases.

I'm requesting fellow t-bhpians to validate the model and let me know if my inferences are right or whether I'm missing something.

Quote:

Originally Posted by Eddy (Post 769003)

Err... quick question. How is the value in cell number C6 calculated ? If your daily run is 12 km on a weekday and 45 on a weekend, no way can you have 2400 as your monthly run.

My sheet shows 420, not 2400. Not sure if something is amiss somewhere. Which version (html, xls download) shows 2400 ?

420 = 12*5*5+45*4.

USING 4 Weeks a month.

Cell A9 provides an opportunity to include the duration lost due to assuming 4 weeks per month. For all practical purposes, that "slip" is about 28 days or approximately 1 month. I'm leaving that out in my calculation on account of holidays, travel other than road, etc. The worksheet provides an option to include that as well.

Quote:

Originally Posted by ram_hyundai (Post 769037)

How did you calculate break even when you dont know the pricing of the car.The pricing of the car would be out in a day or two so that you can make a recalculation of the same.Good effort though.
ram

This is a framework for calculation and uses a fair value assumption today. Plugging in the exact values tomorrow/day-after will provide the correct figures.

I want to vet the model rather than exact numbers at this point of time. If someone can provide a good handle on the maintenance charges part, I can plug that in as well (with an option to include/exclude it from calculations).

Quote:

Originally Posted by sudhirlp (Post 768923)

I have not included
* maintenance charges
* interest calculations on loan and related offsets

The calculation shows me that with a 10% increase in distance per year, break even occurs when first year travel is about 7000km/yr.

Without a 10% yearly increase in travel, break even occurs at about 8700km/yr.

That is a good effort. But maintanance cost and interest on the extra lakh also contribute a significant amount and have a major factor on the break-even point.

AFAIK diesels have service frequency of 5K Kms against the 10K Kms of the petrols.

Quote:

Originally Posted by praveen_v (Post 769127)

That is a good effort. But maintanance cost and interest on the extra lakh also contribute a significant amount and have a major factor on the break-even point.

The catch with interest rate part is that different people have different preferences, requirements.

For now, I've added a static interest rate of 11.75% for 5 yrs, taking into consideration rates from Bank of Maharashtra (the best deals my friend and I found in general). Total interest amount works out to around 34K.

The break even including this interest boils to around 9300km in first year (increasing 10% every year).

Quote:

Originally Posted by praveen_v (Post 769127)

AFAIK diesels have service frequency of 5K Kms against the 10K Kms of the petrols.

Will be good to have an indicative cost range for an year (assuming there are no other major problems).

for a moment I thought I am in the Microsoft Excel help desk, Just kidding, lol:, But a quick add on, Swift DDIS avg in not 14 even in the worst scenario;s, One can expect 17-18 anytime in AC mode too. I personally have experienced it. If its any less then you must be in a city with parking lots between signals :) (Meant the jams)

Hi,

> AFAIK diesels have service frequency of 5K Kms against the 10K Kms of the
> petrols.

The Viva CRDi I had between Nov 04 and Dec 05, had a 10000kms service interval. It had 2 services with me (10000, 20000) costing me Rs 2200.00. The charges were for the air and fuel filters as Hyundai was not charging for oil and oil filters even for free services then.

I assume the same cycle of services for the Accent CRDi. Not sure about the new launces, though.

The diesel Innova's oil change interval is 10000kms though there is a 5000km checkup.

In contrast, my Honda CVT has a 5000km oil change cycle, but the oil filter is changed only every 10000km. Strange, and useless wastage of engine oil, in my opinion.