Thread: Petrol VS diesel?

I work on the theory I won’t spend more than a years salary on a vehicle.

The only EV that currently can meet our use is a Tesla, and it sits right on that limit.

And I won’t be grabbing one anytime soon.

I must be a tight arse then as I wouldn't spend more than about a quarter of a years wage on a vehicle and that would be a stretch - but I do have a company vehicle so that's probably a big influence on that - I have no need for anything new and flash - all my older cars suit my weekend needs well no matter what I want to do. If I ever ended up in a job where I needed my own transport I'd happily drive my $700 Camry to and from work every day - it's quiet and comfortable.

Is it better to finance or pay cash? Vehicles are terrible investments which rapidly depreciate.
Let's say someone has $50,000 cash and wants to buy a $50,000 Hilux or whatever.
If they pay $50,000 cash then depreciation means the vehicle might only be worth say $20,000 in five years, so they have lost about $30,000.
If they finance $50,000 at say 10% over five years, then the interest cost is about $13,000 and they pay about $63,000.
So they would actually be about $17,000 better off to finance the vehicle and keep their savings in the bank or use it for appreciating assets. That assumes they can afford repayments of $245 a week, of course.
So paying cash is not always the best choice.

Originally Posted by scarry

Have a look on some of the Tojo forums,and see what sort of economy the later diesel LC's get towing large 3T plus vans.
If they get less than 21l/100k,they are doing well
Around town not towing they are generally getting 14's.

Other vehicles such as the D4 may use slightly less,but not much less.Mine is lucky to get less than 12.5 to 13.5l/100 around town.
On a run loaded,around 10.5 to 11.5,empty around 9.5L/100.Towing around 2.6T,which is the heaviest van i have towed,around 15 to 18l/100 depending on the wind.

Sure the very latest Patrol with the updated enginel will use slightly more,as an example,but its the issues with the diesels that off set the slightly worse economy.
Injectors,DPF's,EGRs,Turbos,etc,etc.
And the mods that are fitted,catch cans,larger fuel filters,etc,etc.

My fathers purchased some new twin cab thing... navara?? I dunno they all look equally as tediously boring to me (though I could be swayed by a defender.... that should be hideous enough for me to own). He's averaging about 15L/100 towing his 24' twin axle aussie built (so heavy) bailey caravan. His territory diesel AWD was returning about hte same towing.

seeya
Shane L.

My Hilux does about the same towing my old twin axle Viscount (1,600Kg) at 90KPH.

Originally Posted by DiscoMick

Is it better to finance or pay cash? Vehicles are terrible investments which rapidly depreciate.
Let's say someone has $50,000 cash and wants to buy a $50,000 Hilux or whatever.
If they pay $50,000 cash then depreciation means the vehicle might only be worth say $20,000 in five years, so they have lost about $30,000.
If they finance $50,000 at say 10% over five years, then the interest cost is about $13,000 and they pay about $63,000.
So they would actually be about $17,000 better off to finance the vehicle and keep their savings in the bank or use it for appreciating assets. That assumes they can afford repayments of $245 a week, of course.
So paying cash is not always the best choice.

And then there’s Leasing, I get a nice tax break doing that!

Originally Posted by DiscoMick

Is it better to finance or pay cash? Vehicles are terrible investments which rapidly depreciate.
Let's say someone has $50,000 cash and wants to buy a $50,000 Hilux or whatever.
If they pay $50,000 cash then depreciation means the vehicle might only be worth say $20,000 in five years, so they have lost about $30,000.
If they finance $50,000 at say 10% over five years, then the interest cost is about $13,000 and they pay about $63,000.
So they would actually be about $17,000 better off to finance the vehicle and keep their savings in the bank or use it for appreciating assets. That assumes they can afford repayments of $245 a week, of course.
So paying cash is not always the best choice.

Lots of variables here,everyone is different.

For a start,many wouldn't have the $50K in the bank to start with.

Some can write the interest off,as with leasing as Tombie has said,although you need to be able to afford pay the money,before you get it back.Depending how it is set up,there is also a balloon payment at the end.

The factor seemingly forgotten is that a 50K ICE car is quite a big thing like say a Mazda 6 , Subaru Outback/liberty or one of the many SUVs, whereas an Ioniq is a tiny thing.
So lets compare apples with apples.
The great unwashed like we pensioners could no more afford a 50K car than fly. We cannot borrow much we cannot lease.
I just bought our runabout car for the next 10 years or until my wife or I cannot drive anymore due to our 2006 Jazz being written off with hail damage.

It's an 11 month old Honda Jazz Vti manual with 12KK and it cost $12950. It gets about 5Lper100 on the highway and about 6.2 combined

so has pretty low emissions. Wonderful car that sounds like a mini Ferrari inside anyway, and has all the mod cons .

Regards PhilipA
For long range work and towing I have my trusty? 2002 D2 . probably horrendous emissions but seeing it rarely goes into town and idles, probably not too many dead that I have seen anyway. BTW the stats on deaths from micro emissions are highly debatable and I understand based on forcing rats to breathe many times the concentration of Nox and whatever . Some died! Nox emission control is mainly because of SMOG as Nox causes smog, not breathability problems.