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Have you tried letting the '98 "bog" for a tank to see if the MPG improves? You should be getting over 30 MPG unless it's all city driving. Swapping in a manual transmission should be worth around 10 MPG with no change in driving style.
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2000 Honda Insight
2000 Honda Insight
2000 Honda Insight
2006 Honda Insight (parts car)
1988 Honda CRXFi
1994 Geo Metro
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