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Alot of guys in the import tuning and muscle car scenes like it because it has such high octane. I only see problems with it eating rubber if your hoses are already worn out. But if you freshen up your whole fuel system you should have no issues.
Every body I have talked to with a flex fuel car complains about the lower economy but most people I have talked to have a large V-6 or a V-8 and do not hypermile.
I think with a few modifications to the fuel systems, a good ignition, and a dyno tuned mega squirt system we could probably get some really good mileage from E-85.
My personal thoughts on ethanol is that we should not be making it from corn, we have enough grass clippings and yard trimmings and wast product from corn and other grains produced in this country that we should be using those instead.
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