Saturday, September 22, 2012

Petrol VS Diesel




Many people gets confused when they try to decide whether they should prefer or go for petrol or diesel cars.Mainly because petrol is more expensive than diesel.But still there are many facts that the car purchaser should know because choosing a car is never easy.Indians are obsessed with the ‘Mileage’.Car makers are trying to increase the mileage for every new car which they would introduce in the future.Cars have mostly petrol engines.But now-a-days there is always a diesel variant made available in every model.Simple reason behind it is that diesel gives more mileage than petrol.As far as mileage goes, a diesel car is a better bet than petrol one.A litre of petrol could help you travel 15 kms while the same litre of diesel would help you travel 21 km.
http://www.cartoq.com/wp-content/uploads/2011/04/petrol-vs-diesel.jpgGuess what, India is the only country where diesel prices are cheaper than petrol prices.That’s because diesel is highly subsidized as diesel is used by state transports and farmers.That is also another reason why food inflation has to do a lot with diesel prices.Prices of diesel in the western countries are higher as compared to petrol.One of the most important factors to take into account while deciding on the variant of the car is the cost of the car.The diesel variant of the same car will be a minimum of Rs 1 lakh more expensive as compared to the petrol variant. In fact, for top-end models the diesel variant is on an average more expensive by Rs 2-3 lakh.
-For example:Toyota Etios G model will cost you Rs6,14,280(onroad price in Delhi) in petrol while G model for diesel might cost Rs7,98,000(approx.).So, in here petrol car's have an advantage.

Diesel engines are heavy, so cars will weigh more. But its ability lies in its torque. Torque is nothing but more power at lower speeds which is normally associated with bigger vehicles. Diesel engines also need powerful batteries.Talking about the health issues, Diesel car's causes more hazardous health problems than petrol car's.
Another fact that you should know is that,around 80-85% cars are bought on a loan. Which means, the cost of the car is not the real cost, but you have to look into the real cost by taking into account, the cost of the loan as well. So, if we compare a Rs 5 lakh (diesel car) and Rs 4 lakh (petrol car) and you pay a rate of interest of 12% per annum for a term of 5 years, the total cost of the diesel car will come to 6.67 lakh, while the same for the petrol variant will come up to Rs. 5.33 lakh. Relative difference is Rs1.77 lakh for diesel but for the petrol its 1.33 lakh after the loan, as compared to the cost of the car itself. In here petrol has an advantage.
It is also to noted that if you drive around 50-100km in a week then I suggest you to go ahead with petrol but if you want car's for commercial purposes or taxi's and you drive the more than 100km even in a day then I suggest you go for Diesel. Just like the cost of a diesel car is more than the cost of a petrol car, the cost of maintenance of a diesel car is also slightly higher than a petrol car.
-Do, keep in mind that as far as insurance goes, the premium you pay towards a diesel car is also slightly higher than what you would have paid for petrol version.

After a few years when you want to sell of the current car and buy a new car, the resale vale plays an important part in funding your new buy. There diesel beats petrol. A diesel car will surely give you a better resale value as compared to a petrol car. But keep in mind, this will depend more on the brand and model of the car.

So,what I want to tell you is that "Invest a few moments in thinking.  It will pay good interest." All I can say is that everything is upto you, I had given my suggestions now you decide which one you should prefer. 

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