Autogas better than a bank deposit!
Let us suppose very generally a conversion is worth 3000, while currency does not matter. So what we are going to do is see how much you could save over 3 years using this money to convert a car and depositing it in a bank. We will use the Conversion Payback Simulator to do the precise math for us. Shall we start?
Before we do, let us introduce the numbers we based our estimates on. They are close to prices and conditions in Poland. We assumed the cost of autogas is 2,50 per litre (in fact it is 2,69 zlotys/l) and for petrol 5 per litre (in reality – 5,59 zlotys/l). The car needs 10 l/100 km of petrol or 12 l/100 km of autogas and its annual mileage is 15 thousand km (1250 km per month). Our exemplary bank deposit, on the other hand, has a rather generous return rate of 7% per year.
We are going to begin with the bank deposit. After a year, the initial 3000 will grow to become 3210. After year 2, the sum will be 3434,7 and at the end – 3675,13. This means you will have 675 extra after 3 years of nothing but waiting. Unless you are applicable for a savings tax, bound to slash your profit by 20% to 540. Still a pretty penny, but let us now see if maybe a conversion to autogas yields better profits.
So, what if you invest the 3000 to change your car's taste from petrol to LPG instead? Our exemplary vehicle is a 3-year-old equipped with an MPI-type engine and a sequential gas injection system. According to gazeo's Conversion Payback Simulator, over a period of 3 years you will save exactly 3739 and, mind you, this is your net profit, excluding the initial investment made, regular maintenance of the system, more expensive MOT tests and even the cost of petrol necessary for start-ups. This means that after 3 years you will be able to afford another 3000-worth conversion and still be nearly 740 ahead!
If you really wish to „freeze” your money safely in a bank and live off the interest, you have to be filthy rich to begin with, which makes hardly any sense at all. If you own a petrol-powered, easy to convert car and have 3000 to spare, get yourself a reliable autogas system and feel your wallet remain thick for longer every month. Just remember that your savings will not automatically cumulate and put themselves aside like they would in a bank deposit, so you will need some discipline to avoid spending all the extra penny on the go, which would leave you with virtually no savings at all after 3 years and a feeling that the decision to convert the car was not the right one. Wait no more – forget safe deposits and risky stock trading and get yourself the benefits of both with drawbacks of neither with autogas!
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