While making decision to buy a new car, many times people come around the important but confusing question “Should it be Diesel or Petrol?”. Well let me help you out for finding the better solution for the question.
As we can see from the current scenario in the market that, a Diesel car model costs more than that of the Petrol car model. Normally the price difference is around INR 1,00,000, may be higher or may be lower. So for now we’ll take it as 1,00,000.
Consider an example for understanding it in a better way. You’re planning to buy a new car named as ‘XYZ’. You’ve two different variants available for this model as ‘XYZ Petrol’ and ‘XYZ Diesel’. Suppose you’ll be driving 1000km per month. So, If your XYZ Petrol model gives mileage of 15kmpl, then it will be consuming 1000/15 = 66.66 (let’s say 70 liters for simplicity) of petrol in a month. Whereas your Diesel model with mileage of 20 kmpl, will be consuming 1000/20 = 50 liters of diesel.
What we’ve assumed in above example:
Mileage of XYZ Diesel = 20 kmpl
Mileage of XYZ Petrol = 15 kmpl
Your monthly driving distance = 1000 km
|XYZ Petrol||XYZ Diesel|
|Price||INR 6,00,000||INR 7,00,000|
|Mileage||15 kmpl||20 kmpl|
|Monthly Consumption||65 liters||50 liters|
|Monthly cost for fuel (INR)||70 x 70 = 4900 ~ (5000)||50 x 50 = 2500|
|Fuel Cost after 1 year||12 x 5000 = 60,000||12 x 2500 = 30,000|
|Fuel Cost After 2 years||24 x 5000 = 1,20,000||24 x 2500 = 60,000|
|Fuel Cost After 3 years||36 x 5000 = 1,80,000||36 x 2500 = 90,000|
At the end of the 3rd year the money you spent for the Diesel will be around INR 90,000. On the other hand the money you spent on the Petrol will be around INR 1,80,000.
Fuel costs after 3 years:
XYZ Diesel = 90,000
XYZ Petrol = 1,80,000
Profit on Diesel model = 1,80,000 – 90,000 = 90,000
This profit on Diesel model is nearly equal to the extra cost you paid at the time of buying it.
i.e., Price(XYZ Diesel) – Price(XYZ Petrol) = INR 1,00,000,
which will be recovered after the 3 years in terms of the fuel costs.
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Well, this simple calculation may help you decide which one is better choice for you. In case you’re looking to buy car for the long term use like 5 years, then it’s better to go for Diesel. Otherwise you may choose Petrol variant. Also you can change the values in the above model according to your needs and pick up the best choice.
Hope you liked the post, you too can suggest the better ways of choosing the car models. Please do share your views through your comments. Thank you :-).
(Please note that, the prices of the diesel and petrol may rise or fall down, I’ve just put this mathematical explanation considering the current prices.)