The inherent fuel-economy advantage of diesel engines, compared to their gasoline-fueled counterparts, is well known and it is one of the major selling points for diesel power.
But there is more to the cost of ownership than just the fuel used. Do diesels really save you money when all those costs are considered?
That’s a question asked and answered by Vincentric LLC, a privately held automotive data compilation and analysis firm headquartered in Bingham Farms, Michigan.
According to Vincentric’s most recent Canadian Diesel Analysis released today, 111 of the total 280 diesel vehicles analyzed, or just over 39%, were identified as having a lower total cost-of-ownership than their closest all-gasoline powered counterparts.
The 280 available diesel vehicles were categorized into three types: Passenger Cars (only 4 diesel models after Volkswagen Group models were withdrawn), SUVs, Crossover and Vans (56 diesel models), and Pickup Trucks – light-duty and heavy-duty (220 diesel models).
Total cost of ownership
To conduct the 2016 Canadian Diesel Analysis, Vincentric measured total-cost-of-ownership of vehicles using eight different cost factors: depreciation, fees & taxes, financing, fuel, insurance, maintenance, opportunity cost and repairs. The analysis assumed vehicle ownership for five years and 25,000 kilometres driven annually.
All four passenger car diesels (100%) showed lower total cost-of-ownership compared to their closest all-gasoline powered versions, and 35 of 56 SUVs, crossovers and vans, (62%) realized a cost advantage.
But only about one-third of the 220 diesel pickup truck models were found to have lower total-cost-of-ownership than their closest all-gasoline-powered alternatives. Of these 72 cost-effective diesel trucks, 52 were manufactured by Ford, and the remaining 20 by Ram.
Without exception, the diesel models all generated substantial savings in fuel costs – typically in the range of $4,000 to $6,000 over five years. But in most cases, those savings were more than offset by higher initial purchase prices that were not otherwise recovered.
Higher initial purchase prices
“Due to higher purchase prices, diesel vehicles generally have more expensive cost-of-ownership compared to their all-gas versions,” said Vincentric President David Wurster. “However, with better fuel economy, nearly 40% of diesel vehicles are showing cost savings.”
The analysis showed that the diesel vehicle with the highest overall cost savings was the Range Rover Diesel SUV, which was forecasted to save buyers more than $22,000 over five years of ownership.
Among passenger cars, the Mercedes-Benz E250 BlueTEC 4matic sedan was the most cost effective, estimated to save more than $6,000 over five years.
On the other hand, in terms of overall cost of ownership, buyers of the GMC Sierra 2500 SLT would be better off choosing the gasoline powered engine which would help them save over $8,000 compared to the similarly equipped diesel.
In both those cases, the initial purchase price differential was the primary fctor in the cost savings realized or additional cost incurred. On the same basis, the favourable results for the Ford and Ram diesels resulted from their much lower initial cost premiums, compared to those for General Motors’ diesels.
Further information regarding this analysis is available at www.vincentric.com.