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Columns: Driving for Dollars
Terry Jackson   Expert: Terry Jackson
Driving for Dollars
Argument likely to go on and on
Driving for Dollars

Battle rages over gas vs. diesel
 

Dear Terry,
I'd like to dispute your statements about the major drawbacks to diesels.

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You wrote: "There are two big drawbacks to U.S. consumers buying diesels: The fact that a gallon of diesel costs more than a gallon of regular gasoline and the $1,000 to $3,000 extra a buyer will pay when purchasing a diesel model instead of a comparable gas-powered model."

True, gas is currently around a dollar less than the same quantity of diesel. However, you can go farther on that gallon of diesel than a gallon of gas. Just check the EPA Web site, that actually lists the costs per gallon of fuel for cars and trucks. You'll find that diesel fuel costs less despite costing more at the pump.

Your second claim that diesels cost $1,000 to $3,000 extra -- while very true -- misses a key point. If you actually look at the long-term cost of a diesel engine, you'll find that it's less than a gasoline engine due to the fact that diesels typically last two times as long as a gas engine. We're talking 150,000 miles (for a reliable gas engine) compared to around 350,000 miles for a diesel.

Any thoughts around these points?
-- Mike L.

Dear Mike,
Your points are part of an age-old argument that has always surrounded diesels in this country. The gas and diesel camps will likely never agree on this subject.

But to address your points:

While it's true that diesels get better mileage than gas-powered vehicles, the comparisons are closer than you suggest.

For example, let's look at the 2009 Volkswagen Jetta TDI diesel, which goes on sale this year. It's rated at 40 miles per gallon city, 50 mpg highway, which Volkswagen says is a 30 percent increase over a gas-powered Jetta.

On July 14, the average cost of diesel in the U.S. was $4.76 a gallon, compared to $4.11 for a gallon of regular -- a difference of about 17 percent. If you drive in the Middle Atlantic states, the difference between diesel and gas is about 20 percent. While both figures give diesel an advantage, the edge at today's prices is very narrow.

Now add in the extra cost of a diesel engine. True, a diesel will last longer than a gas engine, but since most people trade vehicles at less than 100,000 miles, that advantage is negated.

The best diesel bargain might be to buy a used diesel after the original owner has paid the engine premium and then drive it another 250,000 miles.

Here are this week's reader questions:
Trouble may begin when car lease ends
Should I dump my car on the bank?
Isn't diesel better than gas?
How can I stop unjustified collection?
Bankrate.com's corrections policy -- Posted: July 25, 2008
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