The true value of CNG vehicles

[homersimson]

How long do you think the demand of CNG vehicles will last? I remember a point where not a lot of people knew about CNG and now its has become a hot demand.

The prices in the GSA auctions and anwhere else have skyrocketed. But lets be realistic, the only reason for this is Utah. Now my question is how long will the prices of $0.63 a gallon stay? Certaintly it cant be forever, and even companies like Questar will sell out.

Also I am amused to see how high the prices have been going for these CNG vehicles. The values of have double and tripeled what it use to be. When the prices of CNG do go up (which one day they will in Utah), wouldnt this create a backlash in the market for all the people that have bought these CNG vehicles? Just look at the housing market. It can happen with cars too.

[Curtis]

Re: The true value of CNG vehicles

How long do you think the demand of CNG vehicles will last?

CNG vehicles have been around since 1913 and I see them as being one of a myriad of solution to the growing oil situation. Since we have perhaps 700 years of gas reserves and less than 50 yrs of oil... think about it.


I remember a point where not a lot of people knew about CNG and now its has become a hot demand.
And if oil goes bact to $20 abbl, it will return to that condition. Do you think that's going to happen?

The prices in the GSA auctions and anwhere else have skyrocketed. But lets be realistic, the only reason for this is Utah. Now my question is how long will the prices of $0.63 a gallon stay? Certaintly it cant be forever, and even companies like Questar will sell out.
Questar is a monoply and therefore regulated by the PUC. When their annual regulatory meeting takes place, things will change, but don't expect it to become what exists in Ca. It will rise, but never catch oil.

Also I am amused to see how high the prices have been going for these CNG vehicles. The values of have double and tripeled what it use to be. When the prices of CNG do go up (which one day they will in Utah),
This is directly related to this web site... we let the cat out of the bag. Been trying to get the mangy critter back in every since.

wouldnt this create a backlash in the market for all the people that have bought these CNG vehicles? Just look at the housing market. It can happen with cars too.

You're right, it's happening right now... with gasoline vehicles due to $127 a barrel oil... and if it reaches $200 a barrel... you'd better have your cng vehicle already cause you won't be able to afford one when that day arrives.

[cnielsen]

Re: The true value of CNG vehicles

If there is money in it, Car Companies will start to notice and build their CNG cars/trucks/vans. Right now, Mercedes has a van in Germany which runs on Natural Gas. There is *nothing* stopping them from bringing that van here. I know of *many* companies who would buy that today if they could just their hands on it.

Utahn's are luckly. They have a regulated monopoly. I cant see the cost of cng going above $1.00 anytime soon in Utah. Even if it goes to $2, that will still be 1/2 of what it is today.

I agree with you, cars, used cars, are listed for too much. I am thinking about getting another CNG car but maybe not based on the prices I see.

BTW, if you havent noticed, Geo Metros (40mpg+) are going for $3-5k right now. These were sub $1k cars not more than a year ago.

[homersimson]

Re: The true value of CNG vehicles

I was at the local GSA sale 2 weeks ago talking with Ernie he is the rep for GSA western division. I told him its funny how all the excursions, f350 duallys and etc. no one is buying them and they are desperate to sell those, but on the flip side CNG vehicles have doubled in value. He told me he wish he had more CNG for sale to make of for the loses on the gas cars. The same low mileage F350 Dually trucks (gasoline) were bringing atleast $13k-15k last year, now last week they were asking $8k and no one bid.

[homersimson]

Re: The true value of CNG vehicles

Curtis,

I know that gas won't get down the $20 a barrel but my point was the value of the CNG vehicles these days. Its outrageous when I see a cavalier that sells for $14,200. I mean it comes to point where you factor in the excess premium you are paying that you could save that buying a regular gas car. The gasoline cavaliers sell about $4-5k, with that you might as well save that $10,200 you pay for a bi-fuel and just drive a gas car.

Ive been looking at cars in Utah people are selling high mileage trucks for $8-9k, with like 150k miles, do people understand if the compuvalve goes on these trucks its $3.5k? At 150k an engine? transmission? These are outrageous.

My point is that although gas prices is high, CNG vehicles are getting to a point where you are paying way too much than what the vehicle is worth. And if and I am saying IF one day Utah does raise the prices, this will create a HUGE backlash in the market. I will bet you one of these days it will happen.

[maxman]

Re: The true value of CNG vehicles

How about diesels? You can almost steal diesels now. Diesel in SLC area is around $4.50, about a dollar more than unleaded. I have seen the market value of my Dodge almost halve, while the value of the CNG pickup I bought in January has literally doubled.
That all said, I bought a rebuilt Geo a year ago before the gas prices went crazy. Even as cheap as it is to drive, it's costs half as much to drive a CNG F150 (7700) as the Metro for fuel. Now if someone came up with a CNG Metro...

Max

[Ramaniac]

Re: The true value of CNG vehicles

I have 4 kids and needed an SUV. In July of 2005 GMC came down $13,000 for a Yukon XL. We got a 6 year loan and our paymest are mid 500's/month. Love the truck, don't love the 13 city mpg. If you drive 55 on the highway you can get 21-24 mpg as the engine is a 323 (5.3l). With that said, it is NOT a daily driver, and has less that 30K miles on it. BTW #5 is on the way. I may have to get it limo stretched!

[TheBundo]

Re: The true value of CNG vehicles

Diesel at Valero on Saratoga Av. at Moorpark (a cheaper station in general) was 4.95 yesterday.

[freedml]

Re: The true value of CNG vehicles

Monopolies/Utilities don't 'sell out'. They protect their 'turf' and give it up kicking and screaming all the way. It isn't the price (.63 or whatever) but the difference with gasoline that is driving the market. As long as gasoline keeps going up, it won't matter much whether CNG is .63 or 1.63. In So. Cal. CNG is up to $2.60 and more because there is no competition and CNG is still gaining popularity because it is $1.40 less than gasoline (and you can get in the carpool lane with a GX, etc).

[homersimson]

Re: The true value of CNG vehicles

People also need to understand that compuvalves do go out, cng tanks do expire, and cng parts are expensive.

Still I cant sleep knowing that a cavalier sold for $14,200. WOW

[Techie]

Re: The true value of CNG vehicles

How long do you think the demand of CNG vehicles will last? I remember a point where not a lot of people knew about CNG and now its has become a hot demand.

The prices in the GSA auctions and anwhere else have skyrocketed. But lets be realistic, the only reason for this is Utah. Now my question is how long will the prices of $0.63 a gallon stay? Certaintly it cant be forever, and even companies like Questar will sell out.

Also I am amused to see how high the prices have been going for these CNG vehicles. The values of have double and tripeled what it use to be. When the prices of CNG do go up (which one day they will in Utah), wouldnt this create a backlash in the market for all the people that have bought these CNG vehicles? Just look at the housing market. It can happen with cars too.

I wish I had a definite answer, but here is what I got. There are no plans for auto manufacturer's to make more CNG cars. Honda is the sole player and that's it. What we have to buy is very limited in supply and demand is high. We cannot convert because it is very expensive and it is difficult to get kits and even harder to get tanks. Your conversions must be EPA certified or you will not be able to register your car. Price for CNG will go up, but price for gasoline will go higher.

Housing market crashed because of excessive number of investors. Builder flooded the market. No one is making more CNG cars. They only way price goes down is if demand does. For demand to go down, supply usually has to go up. That is not happening, not anytime soon.

[Bender]

Re: The true value of CNG vehicles

People also need to understand that compuvalves do go out, cng tanks do expire, and cng parts are expensive.

Still I cant sleep knowing that a cavalier sold for $14,200. WOW

Maybe if enough CNG owners get upside down on in their vehicles the federal government will come in and bail them all out. Sorta like with this mortgage crisis

[CraziFuzzy]

Re: The true value of CNG vehicles

Maybe if enough CNG owners get upside down on in their vehicles the federal government will come in and bail them all out. Sorta like with this mortgage crisis

Excellent idea.. I'm off to write a sob story to my senator!