Buying a new car?Petrol or Diesel ?

Recently my family trips have increased drastically. Now i feel a strong need to have a car in the family & stop the circus of having everyone on 2-3 bikes 🙂

I started taking a look at the cars in 4-5L budget – right from customer reviews, some biased reviews, technical specs, working of IC engines [4/6 cylinder, V-shape, horizontal, etc]. I must admit that this research added a lot to my knowledge of cars.

But even after reading all this, the question of petrol/diesel started haunting me. I asked the same to many friends who already own a car. Most of them voted for diesel.

To nail this issue bang on, I did a small math –
For the sake of simplicity lets take the example of i20 & daily running of the car be 40 kms. Now –

i20 (Petrol) — 14 km/lit
i20 (Diesel) — 16 km/lit

i20 (Petrol) — Rs 5.8 L
i20 (Diesel) — Rs 6.5 L

Cost per month @40 km per day
Total km in a month = 40 * 30 = 1200 km

Cost of petrol — Rs 51/ lit & Diesel — Rs 36 / lit
Total expense per month (on petrol) — (1/14) * 1200 * 51 = Rs 4372
Total expense per month (on diesel) — (1/16) * 1200 * 36 = Rs 2700

Difference – Rs 1672 per month

Now the cost of diesel car is nearly 1L more than petrol. So to reap the benefit of SAVINGS in diesel it will take (1,00,000 / 1672) months i.e. 59.8 or 60 months or 5 years

So a diesel vehicle will START rewarding AFTER 5 years.

I have not accounted for the inflation of about 7% per annum. And in those 5 yrs, the depreciation of vehicle will also rise !!

Hence in essence, i see that if our monthly running of the vehicle will be @ 1400 km then it makes PERFECT sense to go for a petrol car.

I need to go and book my i20 petrol now !! Chao !!!