A Diesel Car is a better value than an Electric Car

Posted by PITHOCRATES - December 22nd, 2013

Week in Review

People aren’t buying electric cars.  Because they are too expensive.  And because of their limited range.  Governments (federal and states) are trying to encourage people to buy cars they don’t want by offering subsidies to both manufacturers and buyers.  Which is getting some people to buy these cars.  But not many.  For even with those subsidies they’re still expensive.  And still have limited range.  Unlike these alternative cars (see These Diesels From Audi, BMW and Mercedes Cost Less To Own Than Your Gas-Powered Luxury Car by Hannah Elliott posted 12/19/2013 on Forbes).

Automakers have long lamented the American public’s reticence to embrace diesel technology as wholeheartedly as have Europeans…

But those who have adopted diesel love it. Audi head Scott Keogh routinely tells me his company sells out of each TDI model they make; Detlev von Platen at Porsche  told me at the LA auto showst month that diesel technology will continue to play an “increasingly significant” role for its fleet, especially the best-selling Panamera.

The truth is that while there is a price premium (roughly $5,300 on average) associated with the initial purchase cost of diesel vehicles, they typically get 30% better gas mileage and flaunt superior torque numbers and reliability ratings. The automotive analysis firm Vincentric estimates that driving a diesel car will save $2,117 in fuel costs over one year assuming annual rate of 15,000 miles.

Note the one thing conspicuous by its absence.  The word ‘subsidies’.  For people will pay a premium for a diesel.  Because there is value in a diesel.  They have superior torque.  Giving them greater pulling force than comparable sized gasoline-powered cars.  Better reliability.  And best of all they get a 30% better fuel mileage.  Which gives them greater range than a gasoline-powered care with a comparable sized fuel tank.  Giving them a greater range between fuel-ups than with a gasoline car.  And a far, far, far, far, far greater range than an electric car.  Giving the diesel an excellent value for the money.  Something you don’t have to bribe people to buy with subsidies.

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