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Originally Posted by 101Volts
Changing the engine cooling fan from a belt-driven fan to an electric fan is supposed to be a pretty significant mod, around 1 - 2 MPG. When you're talking in the 10 - 15 MPG range, that's pretty significant
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Easy and cost-effective.
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Another large one (regardless if you're keeping the stock engine in it or not) is Water-Methanol Injection. If you can get it set up right to cool the cylinders considerably (and don't mind the extra expense of the Water-Methanol mix,) you can then advance the engine tuning by a significant amount. Doing all of this increases engine power, reduces fuel use, and keeps the pistons much cleaner.
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Usually I see water injection being recommended more for turbocharged engines. Well, adding some shots of Everclear or even blending some regular E85 directly to the fuel tank may lead to a similar result to what you're expecting...
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As for if the car exhaust stinks, perhaps I'm not the best to ask, but I get the general feeling that it's just how these old cars are in stock form. Unless you install a much newer catalytic converter that's going to be much more efficient (and do you want to put that money into it?) Pre-1990s Cars might just stink up the neighborhood.
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Once EFI became more widespread, such smell faded away mostly. When the Fiat Tempra was released in Brazil, initially with a carburettor, it was pointed out the exhaust would stink due to the sulphur amount on the gasoline as the exhaust reacted with the catalytic converter. EFI decreased this issue noticeably. EFI also tended to lead to a longer life of the catalytic converter.