Thursday, September 6, 2012

Petrol Car vs Diesel Car

 Diesel cars are about the same as petrol cars with reference to maintenance costs.

What people don't realise is that regular maintainence is a requirement for any car. If you keep up with the service schedule and drive well, I don't see how a petrol car will be cheaper to maintain than a diesel.

I'm using a diesel now, and comparing a petrol car of the same type costs the same to maintain. No more, no less.

Here’s a list of things to keep in mind.

Usage: If you plan to use the car, only once or twice a day or use it only on weekends, then you should go for the petrol variant. The number of commuters will also play a role in the decision making process. For instance, if you buy an eight-seated vehicle, buying a diesel version makes more sense.  If more number of people plan to travel at one time, go for the diesel model. This will ensure that you justify the higher cost of the car. For a single user buy, a petrol variant makes more sense.

Maintenance cost: The cost of maintenance of a diesel car is also slightly higher than a petrol car. If a well serviced petrol car would cost you around Rs2, 000 to Rs3, 000 every six month for maintenance, a diesel car will easily make a hole in your pocket by a thousand rupees more.”  Do, keep in mind that as far as insurance goes, the premium you pay towards a diesel car is also slightly higher than what you would have paid for petrol version.
Cost of fuel: The price of petrol today stands at Rs 70 while diesel stands at Rs 44. As far as mileage goes, a diesel car is a better bet than petrol one.  A litre of petrol could help you travel circa 15 kilometres while the same litre of diesel would give 21 km.

Resale Value: A diesel car will surely give you a better resale value as compared to a petrol car. But keep in mind, this will depend more on the brand and model of the car. For instance, a Fiat diesel car will hardly offer you a good resale amount.” So, do check the resale value of the brand, model and variant before you decide on the car.

Cost of car:  The diesel variant of the same car will be a minimum of Rs 1 lakh more expensive as compared to the petrol variant. In fact, for top-end models the diesel variant is on an average more expensive by Rs 2-3 lakh.

Cost of the loan: It’s common knowledge that around 80% cars are bought on a loan. Which means, the cost of the car is not the real cost, but you have to look into the real cost by taking into account, the cost of the loan as well. So, if we compare a Rs 5 lakh (diesel car) and Rs 4 lakh (petrol car) and you pay a rate of interest of 12% per annum for a term of 5 years, the total cost of the diesel car will come to 6.67 lakh, while the same for the petrol variant will come up to Rs. 5.33 lakh. Relative difference is Rs1.77 lakh for diesel but for the petrol its 1.33 lakh after the loan, as compared to the cost of the car itself.

Use the above mentioned factors, analyse your need and budget, to firm up your choice of variant.

Note: There are LPG and CNG variants available too. Keep tracking this space for more.

1 comment:

  1. Very nice we blog and useful! I feel i will come back one day !

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