Saturday, May 31, 2008

Chrysler $2.99 Gas Guarantee

$2.99 for gas? For real? Where do I sign up? Oh, I have to buy a new Chrysler automobile to qualify. So if I were in the market for a new car, would this be enough incentive to buy a Chrysler, Jeep or Dodge? Let's run the numbers:
According to http://www.jeep.com/en/refuel if you bought a Chrysler 300, which has an allowance of 1800 gallons over the span of 3 years. If gas prices average $4.30 over that three year period, Chrysler will end up paying $2,358 ((4.30 - 2.00) * 1800) over the course of three years, or $786 a year. If the price of a gallon of gas were to go up to $5.00 a gallon (highly unlikely in the next 3 years), they would end up paying $3,618 total. Their chart on the link above also lists other vehicles which qualify for this offer. Of course, you would receive the entire discount ($2,358 or $3,618) if you follow the rules 100% (using the same credit card every time to buy gas, waiting 6-8 weeks to receive your membership card, not all gas stations accept their membership card, etc.)
For new cars, manufacturers used to offer better rebates at the time of signing. This sounds like a marketing ploy that appears to be a response to media and consumer's concerns over the recent rise in gas prices.
As an alternative: pay cash for a reliable, used car that gets good gas mileage. You won't be 1) upside down in a new car, and 2) trying to follow the strict rules of the "Gas Guarantee" over the course of the next 3 years.

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