Natural Gas Cars: Resale Value Impact?

Natural gas is a fossil fuel that is mostly composed of methane. It is a popular alternative to gasoline or diesel fuel, especially with rising gas prices and growing environmental concerns. Natural gas vehicles (NGVs) are powered by compressed natural gas (CNG) or liquefied natural gas (LNG) and offer several benefits, including reduced emissions and lower fuel costs. However, converting a gasoline car to natural gas can be expensive and may impact the vehicle's performance and resale value. So, does switching to natural gas fuel decrease car value? This article will explore the advantages and disadvantages of converting to natural gas fuel and discuss its potential impact on a car's value.

Natural gas vehicles (NGVs) produce less harmful emissions

Natural gas vehicles (NGVs) offer a range of benefits, including reduced emissions of harmful pollutants. When compared to conventional diesel and gasoline vehicles, NGVs produce significantly lower amounts of harmful emissions. This is due to the cleaner-burning nature of natural gas, which results in fewer greenhouse gas emissions and lower levels of nitrogen oxides, volatile organic compounds (VOCs), and particulate matter.

NGVs with ultra-low NOx engines can achieve near-zero NOx emissions, meeting stringent emissions standards without the need for complicated emissions controls. Additionally, natural gas reduces some engine emissions, such as hydrocarbons, carbon monoxide (CO), and carbon dioxide (CO2). The switch to natural gas from gasoline in smaller applications, such as forklifts and commercial lawn equipment, can lead to reductions in hydrocarbon, CO, NOx, and GHG emissions.

The use of renewable natural gas (RNG), also known as biomethane, further enhances the emissions benefits of NGVs. RNG yields significantly fewer life cycle GHG emissions compared to conventional fossil natural gas. Even blending small quantities of RNG with fossil natural gas can significantly reduce life cycle GHG emissions.

Overall, NGVs, including those powered by compressed natural gas (CNG) or liquefied natural gas (LNG), are clean-burning and perform well against current vehicle emissions standards. The reduced emissions of NGVs contribute to improved air quality and a reduced environmental impact.

Natural gas is cheaper than gasoline

Natural gas is generally cheaper than gasoline. While the price of oil and gasoline can fluctuate due to its status as a global market, natural gas prices are more stable as they are pumped through underground pipelines. This means that the supply is limited to the span of the pipeline, and therefore, natural gas is not subject to the same price changes as oil.

According to the U.S. Department of Energy, the average price of gasoline was $3.65 per gallon in April, while the average price of natural gas was $2.15 per gasoline-gallon equivalent (GGE). This price difference means that natural gas vehicles (NGVs) are more cost-effective, resulting in significant savings on fuel expenses over time. For example, a regular gasoline-powered car averages 32 miles per gallon, while a compressed natural gas (CNG)-powered car averages 43 miles per gallon. This increased efficiency, coupled with the lower price of natural gas, translates to substantial cost savings for vehicle owners.

The abundance of natural gas reserves in the U.S. also helps regulate the price and ensures a stable supply. With the recent discovery of massive natural gas reserves in the country, the potential for natural gas to power vehicles has gained traction. This has led to initiatives by the U.S. government, such as the Department of Energy's $30 million competition aimed at harnessing domestic natural gas supplies for vehicle fuel.

The cost savings of using natural gas as a vehicle fuel are further emphasized when compared to the higher prices of gasoline. The price difference can be as much as $1.50 to $2 less per gasoline gallon equivalent, according to NGVAmerica. This makes natural gas a more economical choice for businesses and municipalities, with many opting to use natural gas in their fleets.

In summary, natural gas is cheaper than gasoline due to its stable supply and pricing, and its use in vehicles results in significant cost savings over time. With the growing availability of natural gas and the increasing cost of gasoline, natural gas vehicles are becoming an increasingly attractive option for consumers.

Natural gas vehicles have a longer lifespan

Natural gas vehicles (NGVs) have a longer lifespan than their traditional fuel counterparts. This is due to several factors, including the cleaner-burning nature of natural gas fuel, reduced maintenance costs, and the extended useful life of engine lubricating oil.

Firstly, natural gas burns cleaner than gasoline or diesel fuel. This results in reduced engine deposits, lower engine wear and tear, and potentially longer engine life. The cleaner-burning fuel also contributes to reduced maintenance costs for natural gas vehicles.

Secondly, natural gas tends to extend the lifespan of the engine's lubricating oil. In comparison, conventionally fuelled vehicles experience engine oil degradation due to soot and other impurities from the combustion process. NGVs, however, benefit from the cleaner-burning nature of natural gas, which produces less carbon when burned, thereby extending the useful life of the engine oil.

Additionally, the use of natural gas as a vehicle fuel is associated with specific engine modifications, such as hardened exhaust valves and valve seats. These modifications do not alter the visual appearance of the engine or its maintenance and service requirements. Nevertheless, it is crucial to have the fuel storage tanks inspected regularly and to be aware of their end-of-life date to ensure proper decommissioning.

While natural gas vehicles offer advantages in terms of lifespan and maintenance, there are also challenges to consider. The limited availability of natural gas refuelling stations, the potential impact on vehicle performance and cargo space, and the cost of conversion are important factors that influence the decision to switch to natural gas fuel.

There are limited natural gas refuelling stations

One of the main challenges of switching to a natural gas-powered car is the limited availability of refuelling stations. As of 2023, there are over 700 public compressed natural gas (CNG) fuelling stations in the United States, with approximately 50 liquefied natural gas (LNG) fuelling stations, mostly catering to the long-haul trucking industry. While these numbers may seem substantial, they pale in comparison to the more than 100,000 gas stations that offer conventional gasoline. This disparity becomes more evident when considering that certain regions or areas may have no natural gas refuelling options at all, while others, like New York and Boston, have a higher concentration of stations.

The limited availability of natural gas refuelling stations can significantly impact the convenience and range of using a natural gas vehicle. It can restrict your ability to take extended road trips or travel to areas outside your immediate surroundings. This limitation also contributes to the lower popularity of natural gas-powered cars among consumers. The task of locating a natural gas refuelling station can be facilitated by using tools such as the Alternative Fueling Station Locator, which allows users to search for public and private CNG and LNG fuelling stations in their desired locations.

The process of fuelling a natural gas vehicle also differs between CNG and LNG stations. CNG stations, which make up the majority of natural gas fuelling stations, require more equipment, while LNG stations necessitate additional safety precautions during fuelling due to the extremely low temperature at which LNG is stored. LNG stations resemble traditional gasoline stations structurally, with storage tanks, meters, and dispensers. However, LNG dispensers deliver fuel at higher pressures, and protective clothing, face shields, and gloves are mandatory during the fuelling process due to the risk of freezing burns.

The expansion of natural gas refuelling infrastructure is an ongoing process, and it is expected that advancements in technology will address the current challenges associated with natural gas vehicles, including the limited availability of refuelling stations.

Natural gas vehicles may have a reduced range

Natural gas vehicles (NGVs) may have a reduced range compared to their gasoline-powered counterparts. This is due to the lower energy density of natural gas, which results in a shorter driving range. The limited amount of compressed natural gas that can be stored in the vehicle's tanks contributes to this issue.

The range of an NGV depends on the number and size of its fuel storage tanks. While larger tanks or multiple tanks can extend the range, they also occupy valuable space in the trunk or cargo area. This can be a significant drawback for smaller vehicles like cars, where space is already limited.

In contrast, conventional gasoline-powered vehicles can typically travel longer distances before refuelling. This is because gasoline has a higher energy density, allowing for more fuel to be stored in the same space.

The reduced range of NGVs can be a concern for those who frequently travel long distances or have limited access to natural gas refuelling stations. In such cases, the reduced range may result in more frequent refuelling stops, which can be inconvenient and time-consuming.

However, it is worth noting that NGVs still offer a comparable range to electric vehicles (EVs). Additionally, advancements in technology and infrastructure may help mitigate the reduced range of NGVs in the future. For example, the development of more efficient fuel storage systems or the expansion of the natural gas refuelling network could improve the range and convenience of NGVs.

Overall, while natural gas vehicles may have a reduced range compared to gasoline-powered cars, they still offer a viable alternative for those seeking a more environmentally friendly and cost-effective option.

Frequently asked questions