Jumping off the Diesel Bandwagon - UPDATED
Well, after two Cummins diesels that I thoroughly enjoyed, I am going to place a factory order for a RAM 2500 with the 6.4L Hemi, 4.10 gears, rear air suspension, Laramie and plenty of added options. ...
Forum Discussion
Should be taking delivery this week :B
Just for fun, I ran the numbers for me of fuel cost per year.
Based on the following:
- 10,000 miles/year (16,000 Km)
- Unleaded fuel $4.57/US gallon equivalent (currently $1.209/L)
- Diesel fuel $5.099/US gallon equivalent (currently $1.349/L)
- Mpg for the 6.7L Cummins used 19 mpg (highway)
- Mpg for the 6.4L Hemi used 15 mpg (highway)
- Annual savings diesel has over gas based on above? $362.99/year
- Mpg for the 6.7L Cummins 15 mpg (mixed driving)
- Mpg for the 6.4L Hemi 12 mpg (mixed driving)
- Annual savings for the diesel based on mixed mpg numbers? $409.00/year
Building trucks equipped the same except engines
Purchase price (MSRP) 6.4L gas - $62,305
Purchase price (MSRP) 6.7L diesel - $71,510 ($9205 higher)
**NOTE: There is a $5000 "cash back" on both right now, so the actual CDN MSRP is $68k for the gas and $76k for the diesel :E.
Payments based on $23k down = $334 BW gas
Payments based on $23k down = $413 BW diesel ($2054/year more)
$2054 more (payments) - $400 (annual fuel savings) = $1650 more per year out of pocket for diesel.
So, based on a savings of about $400/year for fuel costs, my payback for buying the diesel based on fuel costs alone is about 23.5 years.
I know there are other factors to consider for "total cost of ownership", but for me, this is how the numbers crunched based on fuel costs. If you add in that the diesel will be worth more when selling/trading, that would reduce the payback time. I didn't research that part of it, because it's hard to say what a 6.4L Hemi truck will be worth compared to a Cummins diesel in 5 or 10 years. No crystal ball here. There are also the slightly higher finance costs for the extra $9200 over the course of the finance term.
I think maintenance costs will be a wash. Why? Because the 6.4L Hemi requires 0w40 synthetic oil that makes an oil change (at the dealer) about $140 locally. I have to think the Cummins diesel would be about the same price (or slightly higher) at a dealer. Note I'm in Canada.
Just for fun, I ran the numbers for me of fuel cost per year.
Based on the following:
- 10,000 miles/year (16,000 Km)
- Unleaded fuel $4.57/US gallon equivalent (currently $1.209/L)
- Diesel fuel $5.099/US gallon equivalent (currently $1.349/L)
- Mpg for the 6.7L Cummins used 19 mpg (highway)
- Mpg for the 6.4L Hemi used 15 mpg (highway)
- Annual savings diesel has over gas based on above? $362.99/year
- Mpg for the 6.7L Cummins 15 mpg (mixed driving)
- Mpg for the 6.4L Hemi 12 mpg (mixed driving)
- Annual savings for the diesel based on mixed mpg numbers? $409.00/year
Building trucks equipped the same except engines
Purchase price (MSRP) 6.4L gas - $62,305
Purchase price (MSRP) 6.7L diesel - $71,510 ($9205 higher)
**NOTE: There is a $5000 "cash back" on both right now, so the actual CDN MSRP is $68k for the gas and $76k for the diesel :E.
Payments based on $23k down = $334 BW gas
Payments based on $23k down = $413 BW diesel ($2054/year more)
$2054 more (payments) - $400 (annual fuel savings) = $1650 more per year out of pocket for diesel.
So, based on a savings of about $400/year for fuel costs, my payback for buying the diesel based on fuel costs alone is about 23.5 years.
I know there are other factors to consider for "total cost of ownership", but for me, this is how the numbers crunched based on fuel costs. If you add in that the diesel will be worth more when selling/trading, that would reduce the payback time. I didn't research that part of it, because it's hard to say what a 6.4L Hemi truck will be worth compared to a Cummins diesel in 5 or 10 years. No crystal ball here. There are also the slightly higher finance costs for the extra $9200 over the course of the finance term.
I think maintenance costs will be a wash. Why? Because the 6.4L Hemi requires 0w40 synthetic oil that makes an oil change (at the dealer) about $140 locally. I have to think the Cummins diesel would be about the same price (or slightly higher) at a dealer. Note I'm in Canada.
