Buy a New Chrysler, Lock In Gas Prices

zogger

Tue, 06 May 2008 11:52:35 PDT

Chrysler is offering a limited time for most but not all models of their new cars a guaranteed gas cost lock in incentive, for 12,000 miles a year for three years. Regular will be $2.99, with the drivers being given a special credit card that will subtract any difference beyond that point so it doesn't show up on your bill. Something to consider with oil prices and futures climbing fast.
ed.z.: Ha, feeling lucky? They'll sell a few with the gas credit card deal. In other news, drivers are dumping their gas guzzlers like over mortgaged ARM adjusted homes. Sure to be some bargains soon if you need a heavy 4WD work truck or big SUV for occasional use.

Tue, 06 May 2008 13:42:22 PDT

You know what's been just making me laugh(and scream in frustration at times)? All those people who own huge SUVs and pickup trucks will literally crawl over the littlest bump in the road so as to not ruin something in their vehicle. I guess they missed the Mythbusters episode where they proved that driving faster over speed bumps and the like is actually a smoother ride; it was simply AP physics class for me.

Now back to the topic, this is why I locked my fuel in at "nearly free". No, I'm not stealing gas, I'm using waste veggie oil.

wowbagger

Wed, 07 May 2008 05:03:04 PDT

Over on Tundra Headquarters they examine this offer and determine it to be (let me charitable in my terminology) less than optimal relative to just taking the cash incentives.
To summarize (sticking to about 2 significant digits): They give you $3/gal gas for 12000mi/yr. Since they don't know how many miles you drive they estimate the 12000mi by the EPA fuel economy. Assume a Dodge RAM at 14MPG - that's about 860gal/yr. Assume gas is $5.00/gal - you save $1700 per year, or a total of $5200. The incentive cash is $5500, so right there you are out $300, ignoring the time-value of money. Take that $5500, use it to reduce the cost of the loan, and you get even more savings. Buy a more fuel efficient vehicle and the gas deal works out even worse. Assume gas stabilizes at $4/gal and it is even worse.
Never forget: Chrysler is in business — they will do NOTHING that does not make them money in the long run.