IRS Section 179 Tax Deduction Question: Gas vs. Diesel Sprinter Vans… Which is Right for You?

If you’re looking for an IRS Section 179 tax deduction, the Mercedes-Benz Sprinter is a popular choice for business owners. But there is a big decision to make when it comes to the engine: gas or diesel?

Both gas and diesel Sprinter vans have their own advantages and disadvantages, so it’s important to weigh your needs and preferences before making a decision.

Gas Sprinter Van Advantages

• Lower upfront cost: Gas Sprinter vans are typically less expensive than diesel models. This is because diesel engines are more complex and require more expensive parts.
• Better fuel economy in city driving: Gas engines typically get better fuel economy in city driving than diesel engines. This is because diesel engines need to warm up before they can operate efficiently, which can take a few minutes in stop-and-go traffic.
• Smoother ride: Gas engines tend to have a smoother ride than diesel engines. This is because diesel engines have more vibration and noise.
• Easier to maintain: Gas engines are typically easier to maintain than diesel engines. This is because gas engines have fewer parts and are less complex. You can also skip having to add diesel exhaust fluid, or DEF, saving time and money with a gas-powered engine.

Diesel Sprinter Van Advantages

• Better fuel economy on the highway: Diesel engines typically get better fuel economy on the highway than gas engines. This is because diesel engines are more efficient at high speeds.
• More torque: Diesel engines have more torque than gas engines. This means that they can tow heavier loads and accelerate faster.
• Longer range: Diesel engines can travel further on a single tank of fuel than gas engines. This is because diesel fuel is more energy-dense than gasoline.
• Better resale value: Diesel Sprinter vans typically have a higher resale value than gas models. This is because diesel engines are more desirable for commercial use.

So, which is right for your business?

If you’re a business owner who mainly works in town and you’re looking for a van that is fuel-efficient in city driving and has a smooth ride, then a gas Sprinter van is a good option. However, if you need a van that can tow heavy loads or travel long distances, then a diesel Sprinter van is a better choice.

You can also look over all the detailed specs and read more about both 2023 Mercedes-Benz Sprinter engine choices here.

But ultimately, after all the other considerations, the best way to decide which engine is right for you is to test drive both a gas and diesel Sprinter van and see which one you prefer.

Additional Considerations

In addition to the factors mentioned above, there are a few other things to consider when choosing between a gas and diesel Sprinter van:

• Your budget: Gas Sprinter vans are typically less expensive than diesel models, and currently, the wait time for a new van is shorter for a gas powered Sprinter. But the upfront savings may eventually, depending on how much you drive the vehicle and under what conditions, be offset by the higher cost of fuel and lower highway gas mileage.
• Your driving habits: If you do a lot of city driving, a gas Sprinter van may be a better option for you. However, if you do a lot of highway driving or towing heavy loads, a diesel Sprinter van may be a better choice.
• Your climate: Diesel engines are more efficient in cold weather than gas engines. This means here in St. George and other warmer locations, the mileage and gas consumption will be more comparable and you’ll see less of an advantage from diesel in fuel economy. Additionally, diesel fuel can gel in cold weather, so it’s important to winterize your van if you live in a cold climate.

Tax Implications and Conclusion

Both engines will qualify for the IRA Section 179 tax deduction – allowing you as a business owner to write off the entire purchase price in the tax year in which you buy the Sprinter van. This can greatly reduce your tax liability and help you reinvest your hard-earned profits into your business rather than seeing them sent off to the Federal Government.

One other consideration to take into account – waiting until the end of the year, when every other business owner is scrambling to purchase a work truck or van in order to claim the tax deduction, can limit your choices. So picking out a van and making the decision now, may prevent you from having the choice made for you based on availability come mid-December.

So at the end of the day, the decision of whether to get a gas or diesel Sprinter van is a personal one. There is no right or wrong answer, and the best choice for you will depend on your individual needs and preferences.