Should I Buy a Used Car and Convert to LPG?
In fact, it's a gas!
The choice between new cars and used cars often comes down to your tolerance for variability in fuel prices! New cars are usually seen as the leaders in advanced technology which allows the best possible fuel efficiency. While in Melbourne, used cars are usually seen as a low-cost compromise on fuel efficiency, it doesn't actually have to be that way. At the moment, you can have the best of both worlds by purchasing a used car in Melbourne and converting to LPG. This earth-friendly and wallet friendly move is made all the more tempting with government rebates. Does it make sense for you? We find out.
The LPG Rebate
The government is currently giving out grants for the conversion of any Melbourne used cars to run on LPG of $1500. However, the scheme is slowly being phased out - the faster you purchase your used car in Melbourne and convert, the more a grant will cover. The amount drops to $1250 on the 1st of July 2011, and to $1000 from the 1st of July 2012.
Cost of conversions
The cost of having your used car in Melbourne converted to LPG varies wildly, with prices around the lower end sitting at around $1700, and for uncommon models, modified cars or higher-end mechanics, the cost of converting to LPG can run over $3000. Get a quote from at least 3 LPG converters to estimate your after-rebate cost.
Average payback on LPG conversions for used cars Melbourne
Assuming that your after-rebate conversion cost was around $400, here are some possible payback scenarios. All are calculated assuming that petrol stays relatively stable at $1.30 per litre, and LPG remains relatively stable at around $0.60 per litre:
• You drive a small car, around 10,000km annually: You'll save around $30 per month, and the LPG conversion will pay itself back in around 13 months
• You drive a light 6 cylinder car, about 10,000km annually: You'll save around $65 per month, and the conversion will pay itself back in 6 months.
• You drive a light 6 cylinder, around 20,000km annually: You'll save around $130 per month, and the conversion will pay itself back in 3 short months
• You drive a V8, around 20,000km annually: You'll save around $173 per month, and the conversion will pay itself back in 2 months. Your annual saving will be about $2070 ... a decent holiday!
Other benefits of LPG conversions
While the monetary aspects will make sense for most Melbourne used car drivers, they aren't the only advantages to converting to LPG for your car. City drivers will be doing the environment a massive favour, with:
•15-20% less greenhouse gases
•50-60% less carbon monoxide
•35% less VOCs
•Up to 75% less toxic pollutants, like sulphur oxides and benzene
But consider...
Of course, there are two sides to every story! Before you convert your Melbourne used car to LPG, consider that:
• You'll lose some boot space, which may have a significant impact on convenience in smaller cars
• Towing and driving uphill is often slower
• LPG refill points are sometimes more difficult to find.
• You'll need to find a mechanic that specialises in LPG, also
Questions and Answers
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