Cng

[DPI]

The guy I spoke with is actually working with Aubrey on the Chesapeake owned vehicles for CNG conversions. Devon is in the discussions as well.

Boone is part of the difference in price for gas in OK versus TX from what I was told. I guess he controls a good portion in TX and prices it at a delta to gasoline as in 30-40% less than gas.

My Dad ran his work truck on propane back in the 60's, yes it has been around for awhile.

Part of the current expense/issues surround potential inspection of the conversion, there are cheaper routes but as this industry grows you may have a conversion that won't pass inspections, so you want to have all of the certifications in place to be legit.

For me it looks like the break even point on a 50/50 conversion is around 40k-50k miles. As my current ride has about 70k on it I don't see myself keeping it long enough to make money on the deal, I will wait and convert the next new one I buy.

If the conversion costs are between $12-$15K wouldn't it be more prudent to purchase a factory installed CNG setup new or used?

Here's a few used vehicles with decent mileage and a variey of fuel sources. Most of these are around $10K

http://www.cngvehicles.net/

They are located in Morris, OK.

I would prefer a new factory installed CNG setup over an aftermarket install. Unless the CNG was not available...

 

[Shoot Summ]

Or just buy a Cng car straight off the lot.

http://automobiles.honda.com/civic-gx/

That is actually supposed to be one of the better ones out there.

 

[7point82]

Is my math jacked up??

The CNG Civic will take about 4.5 years to make up the difference in price compared to a gasoline powered Civic? Whew.

Civic LX 5sp-AT Sedan $17,760 + D&D
Civic GX 5sp-AT Sedan $24,590 + D&D

$6830 Difference

FWIW:
The Civic LX 5sp-MT Sedan saves you another $800 at $16,960 +D&D and the Civic Hybrid is $22,600 + D&D.

15,000 miles per year @29 mpg (gas) & $4 per gallon is $2,069 per year.
15,000 miles per year @28 mpg (CNG) & $1 per gallon is $536 per year.

Four and a half years of pain in the seat fill ups, almost no trunk space & extremely limited range. Hmmm.

This does NOT take tax credits into account. Someone that knows more about taxes then me will have to chime in.

 

[DPI]

If you take out a 5 year note, you would be paying for the car instead of cost of fuel. So, basically, you are paying Japan and some American workers/dealers for the cost difference of the car instead of Iran for oil. I think I would choose the first option myself.

It's not just the direct cost related, it's our reliance and dependency on foreign oil.

The other thing, like you mentioned, is the tax incentives and the resale value.

 

[7point82]

If you take out a 5 year note, you would be paying for the car instead of cost of fuel. So, basically, you are paying Japan and some American workers/dealers for the cost difference of the car instead of Iran for oil. I think I would choose the first option myself.

It's not just the direct cost related, it's our reliance and dependency on foreign oil.

The other thing, like you mentioned, is the tax incentives and the resale value.

Good points.

I guess I focused my post on the $$$ because I was so surprised that the price difference was so large.

 

[DPI]

Good points.

I guess I focused my post on the $$$ because I was so surprised that the price difference was so large.

Yeah, there is the initial sticker shock. But I would suspect there will be a pricing curve for the technology. Just like everything else, if you are the first to buy a new technology, you will pay a premium, but as time goes, pricing should get relatively cheaper. If we can just figure out what fuel source we want to use, that would be a good first step.

 

[CorpsVet]

I got mine from the guy in Morris. It is a factory CNG/Gasoline car that was a "fleet" car. Only had 22K on it when I bought it.

 

[ratski]

Just to be sure here:

1. We are talking about Natural Gas, not Propane. Correct?

2. What is the deal on the tax credits? Is that a dollar for dollar credit? or deduction? Makes a huge difference.

Dave

 

[DPI]

Substantial tax incentives and credits are offered to buyers of CNG cars or refueling equipment to help lessen the costs of converting to earth-friendly CNG. Oklahoma offers a one-time 50% income tax credit on the incremental cost of CNG vehicles, which comes a credit of $3,415. In 2005, the IRS certified the Honda Civic GX as eligible for the Alternative Motor Vehicle Credit which entitles the buyer to a $4,000 tax credit. Please consult with your personal tax advisor to confirm eligibility for tax credits.

The Oklahoma Alternative Fuel Tax Incentives will expire 12/31/08. Up to $3,415 tax credit can be used on purchase of ’08 and ’09 Civic GX until then. Looks like 2008 is the best year to purchase a new Civic GX!

There is additional linked information using the link above.

 

[underdog]

I have trouble seeing why it would cost $12-$15 to convert to CNG. Folks used to do a similar conversion to propane for much less.

Anyone know any OK companies that do conversions? This has peeked my interest.