Lower running costs worth the extra

Accounting figures show that E-Gas Falcons are fetching more now than petrol models of similar specification.

In an earlier report (more here), we asked whether the three local manufacturers could persuade the public that alternative-fuel cars were attractive, when Ford is having trouble selling the E-Gas Falcons new.

But according to Ford, the E-Gas models are achieving better prices on the used car market and that is influencing residuals for the LPG Falcons.

"We've had E-Gas for many, many years," says Mark Winslow, Ford's Vice President Marketing & Sales.

"And the residual value of an E-Gas car was a thousand dollars less than a normal Falcon. Now, in the last two years that's changed and... A BF will now -- on average -- bring $2500 to $2600 more, as a premium, for E-Gas.

"We all remember how LPG was thought of ten years ago -- or even five years ago -- that's now changed. If the trade is putting two and a half thousand dollars more on a dedicated E-Gas car, you sort of say people have now embraced E-Gas.

"Remember with LPG, it was the 'bomb in the boot' thing and it took a long time for people to get over that."

"Over 25,000km, it's $350 cheaper to run [an E-Gas] Falcon XT than what it is to run a Corolla," says Winslow.

Ford began ordering more E-Gas components for the Falcon range a couple of years ago and the company is currently installing E-Gas engines in 15 per cent of sedans, 41 per cent of wagons and 37 per cent of utes. The percentage figure for the sedan may change, now that the manufacturer has begun shipping E-Gas versions of the FG Falcon.

Further interest in the alternative fuel may arise from Holden's announcement that it will develop a dedicated LPG version of the Commodore within the next couple of years.

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