There are many brands, models and variants of cars available in the market today. Fuel is an important consideration before zeroing on the car to buy. If your running is high, you should consider buying a diesel car else you should look at buying a petrol car.
Congratulations! You have decided to buy a car. It is not easy to select one from the variety of brands, models and variants available today in the market. You also need to consider many factors like cost, mileage, type etc. before making the buy decision. An important criteria in selecting a car is fuel– ‘Should I buy a car that runs on petrol or diesel?’ is a question that most of us have We have compared the two variants to help you make the right choice.
- 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.
As you can see, when you buy a petrol variant, you save on cost of the car and EMI. You can also earn interest when you buy a petrol variant if you invest the differential cost.
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.
The author can be reached at [email protected]
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.
The author can be reached at [email protected]
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