Diesel cars have long been a popular choice for South African drivers, thanks to their reputation for being more fuel efficient and cost-effective than petrol cars. However, recent increases in fuel prices place much strain on South African household budgets, leading some to question whether diesel cars are still the best choice for saving money. The question on everybody’s lips is: Should I buy a petrol or diesel car? Besides the price of fuel, you should weigh each engine type’s pros and cons and decide which suits you best. Let’s examine these in more detail. 1,2
How much does each fuel variant cost?
Diesel models are pricier than their petrol counterparts. For example, the cost of a diesel Toyota Corolla is R30,000 more than its equivalent petrol counterpart due to more costly diesel technology. If you’re paying off the car over six years, that extra R30,000 grows with interest. 1
How does fuel consumption compare?
Diesel cars use about 25% less fuel than petrol engines regardless of city or highway driving, while diesel costs 20% less at the pump than petrol. For example, a diesel Toyota Corolla D1.4 has a fuel consumption of 4.5 L/100 km compared to the 6 L/100 km consumed by the petrol Toyota Corolla 1.3. 1
What about resale values?
Diesel cars have a better resale value than their petrol counterparts. Good resale value matters because it allows you to buy a higher value car next time. For example, the resale value of a five-year-old diesel Toyota Corolla 1.9D is about R20,000 more than that of a petrol Toyota Corolla 1.8 of the same age. But the R30,000 higher purchase price of the diesel variant offsets this advantage. 1
The popularity of diesel cars has grown considerably
According to a fuel efficiency expert, petrol passenger cars were still more popular in 2017 than diesel models despite the cheaper diesel fuel. But, diesel cars have been making strong inroads into the car market. In 1994, they occupied a measly 0.1% of the passenger car market, but this increased two-hundred-fold to 20.1% ten years later. 1
But why are petrol cars still in greater demand?
Much has to do with the motorist’s perception of diesel cars. They appear smelly, noisy, and slow. Their higher purchase price still outweighs their fuel efficiency of cheaper fuel. 1
Diesel costs less than petrol in 2022
Despite recent spikes in diesel prices, the cost of diesel decreased between R1.52 and R1.57 per litre on 6 December 2022, while the petrol price increased by R0.5 per litre. These changes were due to the stronger Rand and lower crude oil price. 2
So, will you save money buying a diesel car? It all depends on how you look at it.
Disclaimer
This article aims to reveal how to save money when buying a diesel car. 1,2
Irrespective of a car being a diesel or petrol model, they still require good insurance cover. Learn more from us at PMD about our world-class client service and affordable car insurance products. They have great benefits such as fixed premiums* and a reduce-to-zero excess*. T’s and C’s apply.
Contact a certified financial advisor for professional advice before purchasing a financial services product.
Sources:
1 https://finansies.solidariteit.co.za/en/buying-car-petrol-diesel-3/
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own. The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.