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Cost vs benifit analysis
1. I have used Cost-Benefit analysis on number of occasions when I go for shopping. Recently I
have done a cost benefit analysis for buying a new car for my uncle. He told me that he has a budget of
6 lakhs and need a sedan with a petrol engine. When he asked my opinion as to which car to buy fewer
than 6 lakhs, I did a small research using cost benefit analysis. The cars that come in the six lakhs
category were Toyota Etios and Maruti Suzuki Dzire. At first, I went to the dealers of Toyota and Maruti
to have a test drive of the cars. Both the cars were to good to drive.
On the outside Etios looks more cute. It’s a bigger car than Dzire with more interior space.
Etios has a boot space of 490 litres when compared to Maruti’s 410, which practically is a huge
advantage on a long vacation trip. Fuel efficiency for a petrol car is very important in a country like India
where petrol prices are very high and rising day by day. The German will stretch a litre for running 14
kilometers in the city and 18 in highways. Dzire is not much far behind giving 11 and 16 respectively. In
the long run there will be a huge difference in the running cost. For collecting these information I
referred many automobile magazines and by seeing the car in the showroom.
I also compared the servicing cost of both the companies. This is the point where Maruti
leads way ahead than the Toyota. Maruti cars are famous for having very low servicing cost. Also having
a Toyota badge on the car is also a sign of prestige which adds to the value. There is no doubt that etios
is a better car here. It has more space, is more comfortable, is slightly better in overall road dynamics,
has the more powerful and frugal engine of the two and is better thought out car. Considering all these
this I and my uncle took a decision to go ahead and purchase the one with the Toyota badge because on
our analysis we found out that its better value for money.