Vincentric Announces 2018 Canadian Diesel Analysis
Most Diesel Truck Not Cost Effective
BINGHAM FARMS, MI – DECEMBER 11, 2018 – Vincentric, LLC announced its 2018 Canadian Diesel Analysis results today with 118 of the 428 (28%) diesels evaluated having a lower total cost of ownership compared to their closest gasoline powered counterpart. The study assumed an ownership timeframe of five years with an annual driving distance of 25,000 kilometers.
Vincentric analyzed 856 vehicles with a majority of the vehicles falling in the Truck (368 diesel) category. Vans (36 diesels), SUV/Crossovers (14 diesels), and Passenger Cars (10 diesels) were also compared against their gasoline equivalents. The results showed that buyers should be cautious when purchasing a diesel truck as only 60 of the 368 (16%) diesels were found to be cost effective. Buyers of diesel SUV/Crossovers (including luxury brands) or diesel vans can feel confident, with all 50 diesels analyzed found to be cost effective. Most passenger cars, including luxury brands, were also cost effective with 8 of the 10 (80%) diesels having lower ownership costs than their gasoline counterparts.
Although only 16% of diesel trucks were cost effective, truck buyers will have a better chance of finding cost-effective diesels looking at 1/2 ton and smaller pickups, with 26 of the 79 (33%) diesel trucks being cost effective. Heavy-duty (3/4 and 1 ton) pickups told a different story with only 34 of the 289 (12%) diesels being cost-effective.
The primary reason that diesels have a higher total cost of ownership is due to their price premium. The market price of diesel trucks averaged $9,668 more than their gasoline powered counterparts while diesel vans cost an average of $5,625 more, diesel passenger cars cost an average of $2,486 more, and SUV/Crossovers cost an average of $1,122 less vs. a similar gasoline powered vehicle. These price premiums create higher costs for depreciation, taxes, and financing which are not always offset by diesel fuel economy cost savings.
Another factor causing diesel trucks to have the smallest percentage of cost-effective vehicles was their higher cost of maintenance. On average it costs $2,019 more for maintenance on diesel trucks compared to their gasoline counterparts. On the opposite end of the spectrum, diesel passenger cars showed an average of $199 less for maintenance than their gasoline powered counterparts over the five-year timeframe.
“When a buyer sees the diesel price premium, it can often steer them away from purchasing a vehicle that could actually be cost-effective’s analysis,” said Vincentric President, David Wurster. “The study revealed that there are plenty of cost-effective diesels in the marketplace, but finding the ones that are cost-effective requires a full understanding of each vehicle’s ownership costs.”
In preparing the 2018 Vincentric Canadian Diesel Analysis, Vincentric conducted a statistical analysis of diesel vehicles to provide buyers and the automotive industry with insightful information on the cost of owning and operating a diesel vehicle and their closest gasoline powered counterparts. Vincentric measured total cost of ownership using eight different cost factors: depreciation, fees & taxes, financing, fuel, insurance, maintenance, opportunity cost, and repairs.
Further information regarding the 2018 Vincentric Canadian Diesel Analysis results for all vehicles analyzed can be requested from marketing@vincentric.com or visit the Vincentric.com Diesel Analysis Page to view the top 3 cost-effective vehicles in each category.
Contact:
Kortney Saxena
Vincentric, LLC
(248) 430 4121 ext. 114
kortney.saxena@vincentric.com
©2018 Vincentric, LLC, All Rights Reserved.