Chrysler Offers $2.99 Gas for Three Years

http://www.foxbusiness.com/story/pe...ney/consumer-debt/chrysler-offers--gas-years/

Chrysler Offers $2.99 Gas for Three Years

In a time when many families are cutting back on spending of automobiles and gas, Chrysler is offering an incentive to new car buyers: $2.99 a gallon gas.

The car manufacturer will provide purchasers of new Chrysler, Dodge, or Jeep cars a $2.99 gas guarantee, starting on Wednesday and running through June 2.

The guarantee comes in the form of a branded fuel card that locks in the price of gas at $2.99 per gallon for the next three years.

A few car models are excluded from the deal, including all SRT performance vehicles, the classic Jeep Wrangler, and Dodge Challengers.

Chrysler hopes the plan will revive sluggish sales, which were down 23.5% in April 2008 compared with April 2007, according to USA Today.

New car owners will be allowed 12,000 miles of driving per year, based on the vehicle’s miles-per-gallon rating. Consumers can purchase 87-octane regular gasoline, diesel fuel, or E85, a gas and ethanol blend

I heard you can choose the gas or a rebate but not both. I don't think it will help much.

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THE DEAL
By now, you've probably heard the sales pitch: "Buy a new Chrysler and the company will guarantee you gas for $2.99 a gallon for three years."
On a day like Wednesday, where gas jumped to $3.90 a gallon for regular unleaded, it might look pretty good.

THE VARIABLES
By doing this, you are guaranteed not paying more than $2.99 a gallon, but you are gambling on the price of gas.

An economist at Virginia Commonwealth University used a Jeep Grand Cherokee with a V-8 engine that gets 17 miles a gallon as an example.

We double-checked these numbers ourselves and with a local economist at Michigan State University.

THE CATCH
If the price of gas averages $4 bucks a gallon for the three years of the deal, you would save $2,139 dollars.

That would be a great deal if you weren't giving up $2,500 bucks in a factory rebate. (The factory rebate is actually $3,500 dollars but is reduced to $1,000 dollars if you opt for the gas card.)

Factor that in and you're losing $360 dollars.

The only way it's a good deal according to this example, is if gas passes $5 dollars a gallon, or if you buy a car with awful gas mileage akin to an Abrams tank.

THE END-AROUND

For the creative thinkers out there who think they can turn this into their advantage, think about this.

This deal is only good for 12,000 miles a year, so if you drive a lot or let the whole family fill up their cars, you'll just use up your gas allotment faster.

THE COMPANY LINE
"This is just like any other incentive automakers offer," said Leo Jerome, owner of Story Automotive Group. "Instead of interest rates or financing, Chrysler is using this, because it's on the minds of every driver."

He says buyers are betting on gas prices and if they think they will go up to unspeakable highs they are guaranteed not to pay more than $2.99. If they drop to $2.75, well, the deal is not so good.

The offer ends June 2 at your local Chrysler, Dodge and Jeep dealers.

THE OTHERS
Chrysler's competitors, Ford, Toyota, GM and Honda all say they will not follow with their own subsidies.

However, Suzuki has made a similar offer in the U.S. with free gas for the summer.


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This is some very adroit marketing, but you're right Jazz, it all comes out in the wash. They don't make 'em for free, and unless you're paying cash you can tag on a few thousand in financing fees. And property taxes in CT, the b@st@rds!!!

I would think they'd be playing hard to compete with Honda, Toyota, Subaru, Lexus, Infinity - and the list could still go on.

I drive American because I believe in and want to make an investment in America. Man, I'd love to have a Lexus or Infinity, but I can't bring myself to do it. I have two GM vehicles - a Corvette and a Chevy 1500 P/U. If it costs me $400 dollars more to drive American, I don't care. But a Chrysler... um, I don't think so.

BTW, my Vette gets 29.7 MPG on the highway with the cruise set a 2200 RPMs. Roughly 74 MPH. The truck get 20 MPG, which isn't all that bad for a truck.

It's too late for the local Chrysler dealer over in Kenai ten miles away. They had Chrysler, Dodge, and Jeeps for sale. They went out of business on Tuesday. Don't know any particulars.

Ford and Chevrolet are still going strong or so it seems.

Patricia

I predict there will be a flood of buyers. And then within a year They will go bankrupt and all of those who bought in will have to pay the same price for Gas as everyone else.

Remember when gas hit $3.00/gal and we were all gasping for breath? And the occasional pundit would point out there would come a day when we would look back at $3.00/gal with fond memories?

A couple weeks ago I got a letter from my Dodge dealer. As a "valued customer" they're offering a $5,000 "incentive" plus the trade-in value of my 2000 Intrepid R/T. I'll also demand another 0% loan. If I don't get both, then sorry, no new Charger for me..

Green said:

Remember when gas hit $3.00/gal and we were all gasping for breath? And the occasional pundit would point out there would come a day when we would look back at $3.00/gal with fond memories?

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remember the threats of boycotts of gas stations when gas was pushing $2.00 per gallon?

Sysman said:

A couple weeks ago I got a letter from my Dodge dealer. As a "valued customer" they're offering a $5,000 "incentive" plus the trade-in value of my 2000 Intrepid R/T. I'll also demand another 0% loan. If I don't get both, then sorry, no new Charger for me..

Click to expand...

guess no new charger for you

guess no new charger for you

Click to expand...

I don't know about that Dave, after all, they are in business to sell cars, and business just ain't that good these days...

I went thru the same thing 8 years ago with the Trep. The salesman says "Either the incentive or 0%, but not both".

So I get up, walk to the door and say "Thanks for your time. I've always been a Chevy guy anyway, but I figured I'ld give you guys a shot since you're local".

So he says "OK, hold on, let me talk to the finance guy"...

I got the incentive and the 0%. I figure I'll have a similar adventure this time...