- Diesel cars are more expensive than petrol cars. They typically cost about Rs. 1,00,000 more than the petrol variants.
- If you are buying a petrol variant, the Rs. 1,00,000 that you have saved can be invested. In a Fixed Deposit, @ 8% compounded yearly for a year could earn you Rs. 8000 (pre-tax). You would be losing out on this interest income if you buy a diesel car.
- If you are taking a car loan, you will have to pay interest for more amount and for a longer period if you buy a diesel car.
- Diesel is cheaper than petrol today and so diesel cars give more fuel economy. Diesel costs around Rs. 65 in Mumbai and petrol costs around Rs. 80 and the prices are increasing.
- Diesel cars typically give more mileage meaning they run more kilometres for a litre compared to petrol cars.
- Earlier there were performance issues with diesel cars. But now technology has made diesel cars as reliable and as efficient as petrol cars.
- Maintenance charges are almost similar for both. Sometimes the maintenance on diesel cars is slightly higher
- We have taken an example of a compact car to compare the financial aspects of buying a car.
You will save on fuel cost when you buy a diesel variant. This is quite a substantial amount. If the running of your car is high, you should consider a diesel car else a petrol car makes more sense. Of course, here in our example, we have assumed that the fuel prices remain same for 3 years. The change in prices has to be taken into account as well.
Hope this article helps in making your “buy” decision easier. Do let us know which variant you chose and what have been your experiences in making this decision.
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