U of M study

Expecting a return on a depreciating asset, such as a vehicle, is folly. Vehicles in particular depreciate at a very rapid rate until they reach a point that the amount of depreciation is negligible. The diesel vehicles perhaps depreciate at a slower rate. Can the operating cost saving of a diesel offset the cost of the diesel option is the question. Or alternatively, can the disposal value of the diesel exceed that of a comparable gasser that has been maintained and operated in a manner consistent with that of a diesel of set the option cost of the diesel? Or, to further confuse the issue, some combination of both! The proffered study indicates the offset is the case. I however am a little sceptical. A corroborating independent study is required in my opinion.

I recall an axiom, "Trust But Verify!"

Mixing operating costs and capital costs is a recipe for disaster. They are not the same and therefore must be addressed independent of one another. Hence the comment regarding some combination of both the capital and operations costs analysis.