Postby ramishrrr » October 30th, 2017, 4:49 am
Post by ramishrrr » Tue Sep 24, 2013 10:13 pm
Gasoline Vs Turbo-Diesel SUV…..the Truth about Cost.
Many people come from far areas to their jobs. It is not uncommon to know employees who spend an hour or more at the steering wheels to get to work from home. To get home may be even more challenging.
Quite a lot of persons have opted to buy diesel-powered vehicles for their general transportation as they get “better mileage per dollar spent on fuel”. (This is different from “ better MPG ” ) So there are many diesel-powered pick-ups and SUV’s on our roads moving people to and fro.
But the majority of diesel engines today use a turbocharger to increase efficiency. Hence you have very quick and powerful pick-ups or SUV, that can leave the average 1600cc gasoline powered car in the dust. A Nissan Navara with a 2.5 Litre turbo-diesel can reach a speed of 180kms/hr, very quickly indeed. The driving torque, the quickness in acceleration, is better than a lot of cars. It is easy to cut in and out of traffic lines on the highway, complementing the recklessness of the average Trini driver. To many men, a powerful vehicle make up for deficiencies their manhood, extends it, just like the new expensive android phones on the market today…….But that is another story.
Going back to the topic: Is owning and using a Turbo-diesel vehicle more cost –effective than a gasoline vehicle ?
Lots of people own Korean vehicles. They are cheaper than Japanese, pretty to look at, carry lots of features and suit the needs of their owners. For these and other reasons, I am going to select the Hyundai Tucson SUV, in both its incarnations, 2000cc gasoline and 2000cc turbodiesel for comparison.
The same can apply for Toyota or any Japanese vehicle that has both Gasoline powered and Turbodiesel.
The gasoline-powered Tucson costs $229,000, the Diesel $287,000.
We are working with the purchaser having $100,000 cash-in-hand to offset the initial cost of each vehicle.
1. The Bank Interest rate average is 8% per year for a motor vehicle, giving the Amount owed as $190,000 and $276,000 respectively. So after all the paperwork is done at the bank and their lawyer’s office, the actual cost of the Gasoline powered vehicle is $290,920 and the Diesel is $376,000, a difference of $85,000 in favour of the Gasoline-powered. (The lawyer’s fee was not included)
2. Monthly Instalment for the Gasoline vehicle is $2,651, the Diesel is $3,833 a difference of $1,182 in favour of the Gasoline-powered.
3. Fuel costs for Gasoline vehicle for the 6 year loan period is $43,200 vs Diesel $14,400, a difference of $28,800 in favour of the Diesel-powered.
4. We are dealing with a seasoned driver getting maximum 60% No-Claim bonus on 10% the cost of the vehicle. We know that a diesel vehicle’s insurance is higher, but for easier understanding we will rate both as the same. So based on each vehicle Actual Cost, for the Gasoline it will be $69,820 for the 6-year loan period, and the Diesel $90,240, a difference of $20,420 in favour of the Gasoline-powered.
5. Lastly, diesel replacement parts are significantly higher priced than gasoline parts. Turbocharger failure is the weak point of these engines. Turbos spin at minimum 125,000 RPM. They are very expensive. An engine over 125,000 miles is a prime candidate to have a turbo failure. Not every mechanic is diesel-capable too. There are those Turbo-Diesel owners who will argue that their vehicle has crossed that mileage and is going strong. The argument can go both ways. However we are dealing with costs.
2000cc Norm. Aspir. Gas Cost:$229,000 Capital in Buyer's hand:$100,000 Bank Loan Amt:$129,000 Int. Rate8% Loan Time:6yrs Actual Loan with Interest:$190,920 Actual vehicle cost with Interest:$290,920 Insurance for 6yrs:$69,820 Monthly Fuel costs:$600 Fuel Cost 6yrs:$43,200
2000cc Turbo Diesel Cost:$287,000 Capital in buyer's hand:$100,000 Bank Loan Amt:$187,000 Int. Rate:8% Loan Time:6yrs Actual Loan with Interest:$276,000 Actual Vehicle Cost with Interest:$376,000 Insurance for 6yrs:$90,240 Monthly Fuel Costs:$200 Fuel Cost for 6yrs:$14,400
So when you total the (Main cost factors) Actual Cost, the 6 year Fuel Costs, the Insurance for 6 years you will find that the cost of the Diesel will be $480,640, the cost of the Gasoline $403,940, a savings of $76,700, in favour of the Gasoline-powered vehicle.
So when you divide the Actual cost by 72 months, you are actually paying instalments of $6,675.55 a month for the diesel and $5,610.27 a month for the gasoline, a savings of $1,065.27 per month, in favour of the Gasoline powered vehicle.
Bragging rights about how much money it costs to fill your diesel tank, or how much you spend on diesel per month pales in comparison to $1,065.27 ! The Dealer, bank and Insurance companies have that right.
Just remember, to exaggerate a little, that money saved from year 2013 ($76,700 or {monthly$1,065.27 } ) by not buying a Turbo-diesel in favour of the Gasoline-powered Tucson, is worth a hell lot more 6 years later in year 2019, if it was saved in the bank or Credit Union. Too, I have rated the insurance rate as the same. In actuality, the Diesel-powered cost would be more due to higher Insurance premiums which I did not present in my calculations.
Peace.
Wed Sep 25, 2013 4:36 am, edited 2 times in total.
