How much will a diesel save you?
Averaging those three examples, the diesel vehicles hold a 24% advantage over their gasoline counterparts in the city, and a 29% advantage on the highway.
Those results are solid, albeit from a small sample size, but for a more accurate representation of whether a diesel or gasoline vehicle is better for your money and situation, you'll need to estimate how many miles are driven in the city and on the highway. Set up a spreadsheet with a formula like this: miles / (city mpg * % of city driving miles + highway mpg *% of highway driving miles) * $per gallon = cost of fuel per year. That formula will give you a sound estimate for fuel cost per year; let's use 15,000 miles annually with 55% of miles driven in the city and 45% on the highway.
Table by author. Gas price source: U.S. Energy Information Administration. Vehicle MSRP and MPG source: Edmunds.com
You can see that while the annual savings a diesel provides, due to lower cost of fuel per mile, is substantial, it would take many years to offset the premium price tag paid for diesel vehicles. However, those breakeven points appear inflated when you consider the excel model only accounts for the upfront premium -- the pattern holds for the opposite end of the spectrum as well, and diesel vehicles hold resale value better than gasoline counterparts. It's fair to assume your diesel will recoup much of the upfront premium you pay, and more emphasis should be put on how much the diesel vehicle will save on fuel costs annually, rather than the years it would take to break even.
As a rule of thumb, consumers should keep in mind that breakeven points could change significantly in favor of diesels if you do more highway driving than the excel model (that is, 45% of your miles), or drive significantly more miles overall (15,000).
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