Gas vs PSD
Cargo Master
Joined: Mar 2008
Posts: 3,098
Likes: 137
I've never quite understood this statement.
Let's say, hypothetically, a new gas truck costs $40k and the diesel costs $48k. After 5 years of ownership and paying off the loan it comes time to sell. The gas truck sells for $10k while the diesel sells for $18k. Yep that's more money. But the gas guy took that extra $8k he didn't spend and puts that into an investment account and makes 7-9% each year. Who's ahead now? Resale is higher because the initial investment is higher. You spent the premium to acquire the diesel so all you're getting back is the premium you spent.
Fleet Owner
Joined: Mar 2003
Posts: 24,724
Likes: 74
From: Blue Hill Township
I've never quite understood this statement.
Let's say, hypothetically, a new gas truck costs $40k and the diesel costs $48k. After 5 years of ownership and paying off the loan it comes time to sell. The gas truck sells for $10k while the diesel sells for $18k. Yep that's more money. But the gas guy took that extra $8k he didn't spend and puts that into an investment account and makes 7-9% each year. Who's ahead now? Resale is higher because the initial investment is higher. You spent the premium to acquire the diesel so all you're getting back is the premium you spent.
Let's say, hypothetically, a new gas truck costs $40k and the diesel costs $48k. After 5 years of ownership and paying off the loan it comes time to sell. The gas truck sells for $10k while the diesel sells for $18k. Yep that's more money. But the gas guy took that extra $8k he didn't spend and puts that into an investment account and makes 7-9% each year. Who's ahead now? Resale is higher because the initial investment is higher. You spent the premium to acquire the diesel so all you're getting back is the premium you spent.
Senior User
Joined: Apr 2013
Posts: 141
Likes: 0
From: Canada's Wet Coast
I've never quite understood this statement.
Let's say, hypothetically, a new gas truck costs $40k and the diesel costs $48k. After 5 years of ownership and paying off the loan it comes time to sell. The gas truck sells for $10k while the diesel sells for $18k. Yep that's more money. But the gas guy took that extra $8k he didn't spend and puts that into an investment account and makes 7-9% each year. Who's ahead now? Resale is higher because the initial investment is higher. You spent the premium to acquire the diesel so all you're getting back is the premium you spent.
Let's say, hypothetically, a new gas truck costs $40k and the diesel costs $48k. After 5 years of ownership and paying off the loan it comes time to sell. The gas truck sells for $10k while the diesel sells for $18k. Yep that's more money. But the gas guy took that extra $8k he didn't spend and puts that into an investment account and makes 7-9% each year. Who's ahead now? Resale is higher because the initial investment is higher. You spent the premium to acquire the diesel so all you're getting back is the premium you spent.
Useing math or being realistic in a thread like this may get you the ban hammer
Cargo Master
Joined: Mar 2008
Posts: 3,098
Likes: 137
Hotshot
Joined: Oct 2006
Posts: 10,188
Likes: 8,071
From: Texas
But would the gas truck get that much better mileage? How much would it increase the price of the motor? If it just creates a lot of oomph at the expense of fuel not sure it would be that great. Trust me, I'm used to horrible mpg with my V10 so I wouldn't care much and would enjoy the extra power.
Buuuuuutttt.........
People spend thousands to save nickels. Especially if they justify purchasing something on mpg. For example, a low mileage diesel owner. Sure they may need the truck to pull the monster trailer but to argue they got the diesel for better mpg is just laughable. Reason? Because the acquisition cost was much higher and the low miles don't make up that cost (especially now that gas is at the $2.00 mark +/-). There are those, I bet a bunch, who likely put 5,000 or less per year. Without a doubt it does get better mpg, I'm not arguing that at all and for the high mileage drivers the cost will likely recover itself in fuel savings. I'd rather they just say they enjoy the power of the diesel while towing and prefer it to gas. Cool, THAT makes sense! No need to justify the purchase to me. I just don't think those high mileage, in a short timeframe, types would switch to gas.
Buuuuuutttt.........
People spend thousands to save nickels. Especially if they justify purchasing something on mpg. For example, a low mileage diesel owner. Sure they may need the truck to pull the monster trailer but to argue they got the diesel for better mpg is just laughable. Reason? Because the acquisition cost was much higher and the low miles don't make up that cost (especially now that gas is at the $2.00 mark +/-). There are those, I bet a bunch, who likely put 5,000 or less per year. Without a doubt it does get better mpg, I'm not arguing that at all and for the high mileage drivers the cost will likely recover itself in fuel savings. I'd rather they just say they enjoy the power of the diesel while towing and prefer it to gas. Cool, THAT makes sense! No need to justify the purchase to me. I just don't think those high mileage, in a short timeframe, types would switch to gas.
And even with that, if I could have found something like Denny's (rvpuller) DRW 2WD with 4.30 gears on the lot, I would likely have went with that rather than the diesel.
Which brings up another point, when people talk about saving on their purchase price.........I can't remember the last time that I actually NEEDED 4 wheel drive!
And I see many posts on here pertaining to repairing and maintaining the front end on these 4WD trucks! But, anymore, trying to find a 2WD truck on a lot is like trying to find a gas dually on a lot!
New User
Joined: Aug 2012
Posts: 6
Likes: 0
I never viewed it as a gas vs diesel rather you buy the tool you need 4 the job. I have a Dodge diesel I use for my truck camper pulling a jeep but went with a gasser on my F350 for work because I needed payload capacity over pulling ability. I find a lot of people way overbuying for the just in case I need to pull something heavy one time scenario or ego. If you want a diesel just because you like it or need it then go for it but some of the ridiculous justifications I read on here are laughable. As for the resale thing, as others have mentioned, a diesel certainly should have a higher resale because it had a higher cost/value when purchased, just as a King Ranch will have a higher resale than an XLT.
Sticky
Sticky
Fleet Owner
Joined: Mar 2003
Posts: 24,724
Likes: 74
From: Blue Hill Township
How is assuming somebody is going to take the price difference between a gas and diesel and put it into an account earning 9% returns realistic?
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Super Moderator
Joined: Aug 2003
Posts: 25,479
Likes: 742
From: Isanti, MN
Resale would be higher on a Ferrari, too. Doesn't mean it's a better investment.
Cargo Master
Joined: Mar 2008
Posts: 3,098
Likes: 137
In overall money terms it's a wash because you've spent it to regain it. You don't "earn" more by buy a diesel.
Elder User
Joined: May 2011
Posts: 551
Likes: 4
Fleet Owner
Joined: Mar 2003
Posts: 24,724
Likes: 74
From: Blue Hill Township
I never said you did....
Cargo Master
Joined: Mar 2008
Posts: 3,098
Likes: 137
To me, and I'm sure others, this statement implies you will "earn" more with a diesel purchase come sale.
Because the internet cannot show our faces, I'm having a good laugh/fun with this........plus I LOVE a good solid argu.......talk.
Because the internet cannot show our faces, I'm having a good laugh/fun with this........plus I LOVE a good solid argu.......talk.
Cargo Master
Joined: Nov 2008
Posts: 3,152
Likes: 4
I had never driven a psd truck aside from once or twice using a buddies truck. I was super used to my v10 trucks. I still like my v10 excursion but there's no denying the psd is more fun, as well as can tow more etc. Empty vs empty though, again I'd rather drive my 6.0, but after a week of driving my f350 dually 6.0, i feel the want to drive my v10 excursion. I wanted a diesel excursion, and one day i may get one still, but for what i haul, my v10 works just as good as my 6.0 for me.
