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Petrol or Diesel Car. Know why you should Avoid Buying Diesel Car with Ownership Costs Comparison

Petrol or Diesel Car. Know why you should Avoid Buying Diesel Car with Ownership Costs Comparison

Confused in Buying a Petrol or Diesel Car. Compare Upfront Purchase Price, Fuel Cost Savings with Maintenance Costs to know which Fuel Choice should you go for and Why

 

Petrol Car or Diesel Car

Buying a car is an important decision - not only it reflects taste, style, aura and top of it the convenience - but it also is a big financial decision - thanks to high ownership cost of cars in India.

With a Herd trend of Diesel Cars - Its important to know - whether you should follow the herd or choose in wisely in considering Financial Cost, Future Maintenance and Ownership Factor in making Informed decisioning.

Also - a sense of Ownership applies on all among us. As per Report in 'The Guardian' - Diesel Cars as compared to Petrol Emits 4 times more nitrogen dioxide pollution and 22 times more tiny particles which penetrate the lungs, brain and heart.

 

Why Diesel Cars Ownership Cost Higher

UpFront Price Difference Cost

See the Price Difference 

  Petrol Car     Diesel Car  
  Swift Petrol Figo Petrol   Swift Diesel Figo Diesel
Exshowroom 5.47 Lakh 5.17 Lakh   6.45 Lakh 6.25 Lakh
Zero Dep Insurance 17.5K 16K   21.3 K 20K
Road Tax  22.6K 21K   57K 55K
MCD Parking 4K 4K   4K 4K
Extended Warranty 8K 10k   9K 15k
On Road Price 5.99 Lakh 5.68 Lakh   7.36 Lakh 7.19 Lakh

The On Road Price Difference in between Swift Petrol and Diesel is Rs. 1.37 Lakh, While On Road Price Difference in between Ford Figo Petrol and Diesel is Rs 1.5 Lakh.

Even though - there are additional discounts on Diesel Version - expect the Net Price Difference on Hatchback Cars at minimum 1.25 Lakh rs on an average


 

Financing Cost

If you buy Car on Finance - then there would be additional Interest cost for Buying Car in form of higher EMI or even if you buy car on cash - you would be foregiving the Interest which could have earned in form of Fixed Deposit at Bank

Finance : Interest on Rs 1.25 Lakh for 5 years at 10% Interest Rate (if Loan taken) - Rs 34000 (Car Loan Interest is on Reducing Balance)

Own Funds : Fixed Deposit Interest on Rs 1.25 Lakh for 5 years at 7.5% Interest Rate - Rs 51000 (as Cumulative Interest)


 

Diesel Cars Maintenance

Check out the replacement of these Oils & Filters with Service Schedule

  Petrol Car     Diesel Car  
  Swift Petrol Figo Petrol   Swift Diesel Figo Diesel
Engine Oil & Oil Filter 10K Kms / 1 yr 10K Kms / 1 yr 10K Kms / 1 yr 10K Kms / 1 yr
Coolant 20K Kms / 2 yr 20K Kms / 2 yr 20K Kms / 2 yr 20K Kms / 2 yr
Air Filter 40K Kms 20K Kms   20K Kms 20K Kms
Fuel Filter 40K Kms 60K Kms   20K Kms 30K Kms
Spark Plug 40K Kms 40K Kms   xx xx
EGR Valve Cleaning xx xx   30K Kms 30K Kms

 

Costs of Replacement

  Petrol Car     Diesel Car  
  Swift Petrol Figo Petrol   Swift Diesel Figo Diesel
Engine Oil & Oil Filter Rs 1430 Rs 1140   Rs 2380 Rs 1620
Fuel Filter Rs 300 Rs 360   Rs 1300 Rs 1450
Coolant Rs 600 Rs 1265   Rs 850 Rs 1265
Spark Plug Rs 400 Rs 400   xx xx
Clutch & Pressure Plate Rs 2200 Rs 1650   Rs 3500 Rs 5000
Flywheel Assembly Rs 1200 Rs 5200   Rs 1200 Rs 4500
Release Bearings Rs 750 Rs 1700   Rs 3000 Rs 1700
Battery Rs 4000 Rs 4000   Rs 5500 Rs 5500
EGR Valve (Diesel Cars) xx xx   Rs 16000 Rs 20000
EGR Valve & Intercooler Cleaning xx xx   Rs 3000 Rs 1500
Throttle Body Cleaning Rs 800 Rs 500   xx xx
Fuel Heater Element xx xx   Rs 800 Rs 1000

Even there are Parts like Catalytic Converter, Water Pump, AC Coils which though rarely fails - but if they do will cost higher in Diesel Cars vis a vis Petrol Cars.

On an average - its seen that Diesel Cars Maintenance cost is higher to extent of 25 paise per Km vis a vis Petrol Cars

On a 7 Year Horizon - if your cumulative running would be 1 Lakh Kms (i.e. 15K Kms a Year) - expect additional service costs including Wear & Tear Items of almost Rs 25K in choosing a Diesel Cars 


 

Insurance Premium

Diesel Cars has higher Insurance Premium in later years with marginally higher risk cover as against Petrol Cars. Even - the internal loading discount in later years would be nullified in Diesel Cars as against Petrol Cars

On an average the Cumulative Insurance Premium Difference on Swift Vxi and Vdi on a time horizon from 2nd Year till end of 7 years would be Rs 20000 (provided 2 claims taken at end of 3rd Year and 6th Year)


 

Pollution Cess

Considering Rising Pollution and Government and Supreme Court stand against Diesel Cars - who knows there would be a annual tax based on Fuel Type for Diesel Cars causing Pollution Cess. Still - for calculation we will take it as Zero

Refer this report on - Green Cess on Diesel Cars


 

Net Additional Outflow by Opting in for Diesel Cars Vs Petrol Cars

Heads Price
Upfront Price Difference Rs 1.25 Lakh
Finance Cost Rs 34K
Maintenance Cost Rs 25K
Insurance Premium Rs 20K
Pollution Cess NIL **
Net Additional Outflow due to Diesel Car Rs 2 Lakh

 

Savings with Diesel Cars

Fuel Savings with Diesel Cars

In Financial Terms - Diesel Cars gives 2 Benefits i.e Has Better Mileage vis a vis Petrol Cars & Cost of Diesel is relative lesser as against Petrol Cars

City Drive Condtions Swift Petrol Swift Diesel
Mileage Difference 13 Kmpl 17 Kmpl
Petrol Price Rs 60 / Litre Rs 48 / Litre
Average Cost Rs 4.61 / Km Rs 2.82 / Km

On an average - its Rs 1.8 per Km which is saved by choosing in Diesel Car vis a vis Petrol Car

So - considering, upfront cost you will technically Break Even at 1.2 Lakh Kms - then only only would be recovering in on the Diesel Car vis a vis Petrol one


 

Petrol Car or Diesel Car

Unless your Annual Running is bare minimum 2000 Kms a month or 25000 Kms / year  - then only should consider Opting a Diesel Car - as own Interest of Financially viable, else avoid and Choose in Petrol Car or CNG Car

Remember

» You are not going to recover in Upfront Cost even by end of 7th Year - its Financially Unviable to Opt for Diesel Cars (For People with 1500 Km / month running or lesser)

» You will hear more Noise and Vibration from Diesel Cars Engine vis a vis Petrol Cars

» You are Promoting a Fuel which emits 4 times more No2 Pollution and 22 times more tiny particles which penetrate the lungs, brain and heart - causing Environmental Degradation

Share with your Friends, Family - Contribute to help People to know to make Informed Decision in Buying Car by knowing Financial Implications and Environmental Issue !!

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Saturday, 24 June 2017