Well.. Petrol on the verge of hitting a century.. Many have already started moving towards the diesel cars.... There was a time when Diesel engines were considered to be of type trucky... not jus about the size of the cars which were available but also the NOISE it creates... Today.. With the introduction of CRDi engines, not only the noise is drastically reduced but also the mileage is improved.. On an average, diesel cars give 20%more mileage than petrol.. Some cons still. ? Yet its not as smooth as petrol engines as even they enjoyed the technological promotions.. And of-course pick-up.. Petrol is Petrol..
Well.. Lemme dive into whats in my mind to write this blog...The Break Even....
Well....some facts as of today below on which my analysis is all about..
1. Today, petrol price is 76 and diesel is 52.. Petrol being Rs24 costlier..
2. Diesel cars are expensive ....around 1. 3 lak on a average...
3. diesel cars have 25 % more mileage than petrol cars, eg, petrol 15km.. Diesel 20km per litre.
4. Average car loan interest rate 13%
Now what is the BREAK EVEN... ok. break even time is the time i m referring is the time from when diesel cars would start fetching u more profit on your ROI. :-):-):-):-):-)
After watching a couple of experts views from the motors sectors.. Understood.. For a average user driving 1000km in a month , the break even time he/she starts beni fitting is in about 4.5years...
I tried best to calculate how it works... Found the below analysis...assuming above assumptions figures hold good for this period....
In 54 months,
distance travelled :1000*54 = 54000 km
money spent on petrol In: 54000*76/15 = Rs 273600
money spent on diesel : 54000*52/20 = Rs 140400
Since diesel cars are around Rs 1,30,000 already expensive on purchase, adding that costs as well...makes diesel stand at Rs 2,70,000.
Plus Minus equals Zero... So diesel stands profitable right after 4.5years.....
Hold on ....hold... If at all say u had been purchasing car on Emi, then the above promotions which almost everyone in market is talking about holds Wrong...
Let me explain... You would actually be paying interest for this 1.4ak additional bore u incurred during buying. assuming loan at 13%interest for 4 years.. U would be in total paying Rs175200 from your pocket instead Rs1,40,000 I.e with interest. Now.. Since this is paid from your pocket.. It seems always your earned money as and when u paid... Paid from pocket.. Earned money... I m actually talking about if this money of Rs3650 if invested in recurring deposit on an ave of 8.5%...you would have wealth of Rs2,09,013.
In short 1.4 lake proves to be around 2.1lake proves...Around Rs70,000 more.
Now.. Which also means if u have petrol car, u can add this to your price... So... This also means u can drive for another 14 more months... Means break even is more than 6 years instead of 4.5 years....
In case if u drive for say around 500km in a month.. Then this break even would be in,ore than 13years...
I may be wrong in my analysis... Please do comment....
Well.. Lemme dive into whats in my mind to write this blog...The Break Even....
Well....some facts as of today below on which my analysis is all about..
1. Today, petrol price is 76 and diesel is 52.. Petrol being Rs24 costlier..
2. Diesel cars are expensive ....around 1. 3 lak on a average...
3. diesel cars have 25 % more mileage than petrol cars, eg, petrol 15km.. Diesel 20km per litre.
4. Average car loan interest rate 13%
Now what is the BREAK EVEN... ok. break even time is the time i m referring is the time from when diesel cars would start fetching u more profit on your ROI. :-):-):-):-):-)
After watching a couple of experts views from the motors sectors.. Understood.. For a average user driving 1000km in a month , the break even time he/she starts beni fitting is in about 4.5years...
I tried best to calculate how it works... Found the below analysis...assuming above assumptions figures hold good for this period....
In 54 months,
distance travelled :1000*54 = 54000 km
money spent on petrol In: 54000*76/15 = Rs 273600
money spent on diesel : 54000*52/20 = Rs 140400
Since diesel cars are around Rs 1,30,000 already expensive on purchase, adding that costs as well...makes diesel stand at Rs 2,70,000.
Plus Minus equals Zero... So diesel stands profitable right after 4.5years.....
Hold on ....hold... If at all say u had been purchasing car on Emi, then the above promotions which almost everyone in market is talking about holds Wrong...
Let me explain... You would actually be paying interest for this 1.4ak additional bore u incurred during buying. assuming loan at 13%interest for 4 years.. U would be in total paying Rs175200 from your pocket instead Rs1,40,000 I.e with interest. Now.. Since this is paid from your pocket.. It seems always your earned money as and when u paid... Paid from pocket.. Earned money... I m actually talking about if this money of Rs3650 if invested in recurring deposit on an ave of 8.5%...you would have wealth of Rs2,09,013.
In short 1.4 lake proves to be around 2.1lake proves...Around Rs70,000 more.
Now.. Which also means if u have petrol car, u can add this to your price... So... This also means u can drive for another 14 more months... Means break even is more than 6 years instead of 4.5 years....
In case if u drive for say around 500km in a month.. Then this break even would be in,ore than 13years...
I may be wrong in my analysis... Please do comment....
