LPG Conversions: is Car Gas worth a premium?

Forecourt fuel prices continue to rise. My last trip through Beaconsfield Services on the M40 showed pump fuel at £1.17 a litre and I’m sure my next will see them even higher.

LPG is one area which always comes to prominence as prices rise, with quite a lot of questions asked about what kit, what car and what combination of kit and car. But these are questions for those heading into conversion who intend to keep their cars afterward. The big question for those handling existing conversions in the used market is “what is an LPG converted car worth compared to a standard vehicle?”

Ask that question of car dealers and you’ll get a variety of responses. Some will tell you they add nothing, and that the value of a converted car is the standard car less the cost of taking the gas-handling gubbins out. Others, more familiar with LPG, suggest it does usually add value but they are not necessarily willing to pay more for it at auction without knowing how well the system runs.

My own feeling is that, as fuel prices head towards £1.25 a litre at motorway services, we should expect quite a bit more interest in LPG converted vehicles from both trade and public alike. Given increased market interest, I would expect a professionally-installed conversion which is certified, works well and does not have an enormous exposed tank taking up the rear load section of your average MPV, to add something to the trade price of an average five year-old car in good all around condition.

This will vary from already fuel-efficient vehicles likely to cover low miles in ownership, which would probably carry no premium, to cars such as a 3-series BMW saloon. Boot space on a 3 series allows for a moderate sized tank without much intrusion, and prestige badges such as BMW always benefit from slightly lower running costs, so I would expect a good quality gas conversion in a decent example of the model to add something like £150/200 to the price.

In the case of petrol 4×4s and other large vehicles, which have a desirability factor as regular transport and can benefit enormously from the lower running costs of a gas conversion, I would expect that premium to be higher. On something like a petrol-powered Jeep Grand Cherokee or Range Rover, where the converters have used underfloor tanks, I would be surprised if gas didn’t add £250/300 to the price of a vehicle in good condition with decent history.

The other area where gas can make a difference is in commuter transport: smaller-engined vehicles running tens of thousands of commuter miles a year, but with an LPG tank in the trunk for penny-pinching motorway pounding. Though these high-mile hacks will invariably change hands between private individuals, I would still expect the prospect of a 90 mpg equivalent Citroen AX to be worth a premium of £150/200 on a car with a year’s MOT and good service history.

Remember: it won’t take long to earn these premiums back at £5.20 or more per gallon of petrol. The easiest way to envisage just how much more a conversion might be worth to you is to base all your calculation savings on the assumption that you will cover minimum miles in a year and pay a proportion of that - not the whole amount.

When it comes to buying converted cars, always try to buy cars with the latest sequential kits, as they are more efficient and the parts are more readily available. Never buy an LPG car without a lengthy test drive first to ensure the system works properly. Practice a small top up too, just to ensure the smell of gas is something you can put up with every now and then.