My take on economics of diesel conversion - Defender Source
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  #1  
Old June 15th, 2006, 09:29 PM
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George Kase
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My take on economics of diesel conversion

So, here's my thinking on doing this. First. mileage on a diesel is at least double that of a V8. But, as has been pointed out before, it will take many years to break even on what it costs to convert to diesel fuel as opposed to the price of gasoline in the US. Even in summer of 2006. But there is a parallel economics to consider. Remember, every dollar we spend is a vote. It's a vote for whoever you spend that dollar with. Therefore, I'd rather spend a whole lot of money for the conversion with the folks who supply me with Rover parts than spend it with the oil companies who continue to rip us all off as much as they can. So, what do I pick...big chunk of change to people I like and want to help prosper...or...less money to those that I like less. Does an expensive and probably unneccesary diesel conversion make sense in terms of money saved for retirement? No. Does it make sense in terms of perpetuating a community and activity that I value? Yes. just my 2 cents.
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  #2  
Old June 15th, 2006, 09:41 PM
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Well put... I feel better every time I fill up the oil burner.. Kind of like sticking it to the MAN even though I spent 2.87 a gallon today ..
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  #3  
Old June 15th, 2006, 09:49 PM
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Jack Walter
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Its not the oil companies that are making the big profits on the gasoline - it's the government which collects over 60 cents a gallon in taxes. The oil companies are making around 8 cents a gallon.

I'm running B100 biodiesel made from chicken fat - costs $2.74 a gallon (which is high - a few weeks ago it was $2.35) and does not put any money into OPEC.

Get the Fair Tax bill passed and watch the gas prices come down dramatically.
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Old June 16th, 2006, 12:00 AM
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Quote:
Originally Posted by JackW
Its not the oil companies that are making the big profits on the gasoline - it's the government which collects over 60 cents a gallon in taxes. The oil companies are making around 8 cents a gallon.

I'm running B100 biodiesel made from chicken fat - costs $2.74 a gallon (which is high - a few weeks ago it was $2.35) and does not put any money into OPEC.

Get the Fair Tax bill passed and watch the gas prices come down dramatically.
I used to think this way, but it is incorrect While it is criminal what the government is taking, the oil companies are taking way more. The gas station makes 9 cents a gallon, true. But it costs on average $22 to get the oil out of the ground, packaged and shipped. The futures market is trading at over $70 a gallon last time I checked. So, there making an absolute killing. Is it their fault? No. I would do the same thing. Still sucks for us though.
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  #5  
Old June 16th, 2006, 02:07 AM
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Chris Davis
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Sounds to me someone wants a diesel no matter what the cost. Justify it any way you want to there, skippy. You kind of are speaking to the Choir when you say stuff like that on this board. We are like a pack of dogs that just hear words, words, words, words, diesel, words words, tits, words words words words, beer, words words words...
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Old June 16th, 2006, 03:00 AM
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My excuse

I simply won't get another vehicle until I can get a small (by todays insane standards) diesel 4x4 that doesn't look like a spaceship. First one to market wins, even if that means a wrangler *ugh*. I want to buy one more vehicle for myself for the rest of my life, so that vehicle better run on a fuel that is plausibly renewable.

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  #7  
Old June 16th, 2006, 08:32 AM
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Quote:
Originally Posted by praetorian
I simply won't get another vehicle until I can get a small (by todays insane standards) diesel 4x4 that doesn't look like a spaceship. First one to market wins, even if that means a wrangler *ugh*. I want to buy one more vehicle for myself for the rest of my life, so that vehicle better run on a fuel that is plausibly renewable.

Cheers,
prat
I've been thinking for a long while how great the wrangler would be for a diesel, hell jeep already has a diesel motor federalized, they just need to ship it over to the platform... while i'm not a diesel fan boy, i think for this particular application (light trucks) it makes alot of sense, of course i have sense which automatically eliminates my ability to ever become someone influential at an american auto maker.

diesel econics are quickly shifting once gas gets to the mid 3.50's it'll be even better...

the cost of a diesel conversion is from what i can tell somewhere in the 11k region if you do all the installation yourself. Well if your someone like me who's going to need a new motor in the near future you can wipe out about 3k for a new motor and accesories that probably need to be replaced anyway, and start from the 8k mark... how much do you spend on gas a year? well for me i average about 300 miles a week commuting to work and then another 150 on an average weekend, assuming i get 14 mpg
thats 450/14 = ~32gallons of gas a week X 3.15(price of gas by me) = 101 dollars a week * 52 weeks = 5265 dollars on gas a year...
now diesel, from what i hear you can get about 25 mpg out of the H2.8 so...
450/25 = ~18 gallons a week X 2.95(price of diesel) = 53 dollars a week * 52 = 2761 dollars a year on diesel...

so it will take what four years or so? and then add what was mentioned earlier about chosing where your money goes(manufacturer of goods you want, vs money going somewhere it has to go)
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  #8  
Old June 16th, 2006, 09:14 AM
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Agreed ... preaching to the choir here too, but a good point nonetheless.

Interesting "story" in the local paper earlier this week: Gasoline retailers whining that they're only making a penny to a penny and a half per gallon, because, dig this, the credit / debit card fees at the pump are pased on a percentage of gross sales (!) and are up to 6.5 cents per gallon.

Whiners. Put a big sign out by the street and split that 6.5 cents with me and I'll happily prance inside and pay cash.
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  #9  
Old June 16th, 2006, 10:39 AM
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Quote:
Originally Posted by Keith Armstrong
Agreed ... preaching to the choir here too, but a good point nonetheless.

Interesting "story" in the local paper earlier this week: Gasoline retailers whining that they're only making a penny to a penny and a half per gallon, because, dig this, the credit / debit card fees at the pump are pased on a percentage of gross sales (!) and are up to 6.5 cents per gallon.

Whiners. Put a big sign out by the street and split that 6.5 cents with me and I'll happily prance inside and pay cash.
bah, by me they have gas stations that only accept cash, they are cheaper but I don't carry cash, so i go places where i can keep racking up my skymiles!
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Old June 16th, 2006, 10:56 AM
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Most stations by me charge you .45 a transaction on top of the 3.25 a gallon for gas. Like salt in a wound.
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  #11  
Old June 16th, 2006, 11:51 AM
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Wow! I knew there was a reason I didn't live in SoCal

KAA
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  #12  
Old June 16th, 2006, 09:08 PM
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Wow! I knew there was a reason I didn't live in SoCal

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Old June 16th, 2006, 09:29 PM
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