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      05-25-2008, 07:10 PM   #1
Dmitriy@AUTOcouture
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$2.99 Gas from Chrysler

Alright, so I'm sure most of you have seen the new campaign that Chrysler is holding with all thier companies (Jeep, Dodge, etc.) in regard to the $2.99 gas.

Well I have a couple of questions.

1. I am almost sure that this campaign is done by Chrysler signing a contract with a major gas retailer and sending all the cars to them for fuel. Furthermore, there has to be some sort of method of reseting the actual gas price to the $2.99 price. For instance, its not like every gas station in the US is going to have a special pump with $2.99 gas, just for Chrysler vehicles. So how do they set that up?

2. If setting up a contract with a major retailer, is the way that they are able to issue $2.99 gas when most prices are over $4.20/gallon, then how come every major gas company executive is saying that there is no premium on gas? I.E. Isn't the difference between $2.99 and $4.20, essentially the spread?

3. How come we, as drivers, can't approach BP and also sign a contract with them? Something along the lines of, "OK we'll come to you and only you, for fuel, but instead of charging me $4.00/gallon, only charge me $2.99".

Thoughts?
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      05-25-2008, 07:24 PM   #2
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$2.99 gas is a gimmick.

I would rather have the typical $3-$5k rebate of MSRP or 0% financing.

Chrylser is paying the delta on your credit card bill. Anything over $2.99 a gallon.

We a re only talking a couple thousand dollars savings here. Nothing dramatic, but folks will fall for it.
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      05-25-2008, 07:42 PM   #3
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Because the gas company executive wants to rip you off and continue to be in the most profitable field of business.
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      05-25-2008, 07:48 PM   #4
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Hmm... The questions, for the most part remain unanswered.

And as far as paying the delta over $2.99, what if you use cash to pay for gas?
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      05-25-2008, 07:49 PM   #5
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Quote:
Originally Posted by shpuntik View Post
Hmm... The questions, for the most part remain unanswered.

And as far as paying the delta over $2.99, what if you use cash to pay for gas?
You don't You use a special credit card if you want to pay no more than $2.99 per gallon. Gallons will be noted on the bill and your account will be credited the proper amount. If you pay cash you get no rebate.
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      05-25-2008, 08:09 PM   #6
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Clever marketing meant for dummies.

Assume 3 year / 40,000 mile lease of a car getting 25mpg.

Assume a $4.00 average price / gallon

Savings = $1600 over 3 years..... I rather beat the crap out of a salesman and get $3000-$5000 immediately.

Even at an average of $5 / gallon for gas, the savings is only $3200 over 3 years.


Gas price is SUCH an emotional crutch for the weak minds.
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      05-25-2008, 08:22 PM   #7
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Quote:
Originally Posted by T Bone View Post
Clever marketing meant for dummies.

Assume 3 year / 40,000 mile lease of a car getting 25mpg.

Assume a $4.00 average price / gallon

Savings = $1600 over 3 years..... I rather beat the crap out of a salesman and get $3000-$5000 immediately.

Even at an average of $5 / gallon for gas, the savings is only $3200 over 3 years.


Gas price is SUCH an emotional crutch for the weak minds.
I agree. What I find more amazing is a Prius without the Hybrid drive, just plane old gas engine will get about 30-40MPG if they built it and the car is worth about $15k. It is equivalent to a corolla. Folks are spending $10k more for the Hybrid drive and will never recoup the cost.

But as others have pointed out on other threads, for many it is about monthly cash flow, and not long term financial strategy. Most Americans lack that kind of thing.
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      05-25-2008, 09:19 PM   #8
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Chrysler will hedge most of the upside risk associated with rising fuel prices.
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      05-25-2008, 10:06 PM   #9
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Quote:
Originally Posted by T Bone View Post
Clever marketing meant for dummies.

Assume 3 year / 40,000 mile lease of a car getting 25mpg.

Assume a $4.00 average price / gallon

Savings = $1600 over 3 years..... I rather beat the crap out of a salesman and get $3000-$5000 immediately.

Even at an average of $5 / gallon for gas, the savings is only $3200 over 3 years.


Gas price is SUCH an emotional crutch for the weak minds.
Wow - nice explanation T-Bone. Haven't even thought about it mathematically... I just wanted to know how the whole operation works, contractually.

Unreal.
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      05-25-2008, 11:07 PM   #10
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Why can't I get the $3 gas and beat the crap out of the sales man for a 3-5k rebate
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      05-25-2008, 11:13 PM   #11
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So how would they monitor that you use the gas strictly for their car, and not one of your other rides? Off the top of my head, I would have thought they would require you to fill up at/thru a dealer to make sure they're paying for the car that got the incentive, and not all the cars in your household. Of course, this would become inconvenient for consumers, so most would end up not using it that often.

I have a feeling I'm way off tho.
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      05-25-2008, 11:39 PM   #12
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Quote:
Originally Posted by T Bone View Post
Gas price is SUCH an emotional crutch for the weak minds.
come tell me that when you're paying above $11 per gallon..
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      05-25-2008, 11:55 PM   #13
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Quote:
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Gas price is SUCH an emotional crutch for the weak minds.
Yeah.... well....
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      05-26-2008, 08:28 AM   #14
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Quote:
Originally Posted by Perpetrator View Post
So how would they monitor that you use the gas strictly for their car, and not one of your other rides? Off the top of my head, I would have thought they would require you to fill up at/thru a dealer to make sure they're paying for the car that got the incentive, and not all the cars in your household. Of course, this would become inconvenient for consumers, so most would end up not using it that often.

I have a feeling I'm way off tho.
It is not about gas or the car, that is the scheme. It is about paying the difference for gas. I believe there is a 12,000 mile per year limit.

i.e. If the average Chrysler car gets 25MPH, it would take 480 gallons to drive 12,000 miles. Chrysler's liability is $480 per year. I don't think they care what car the gas goes in. It is a moot point. However, the more gas you pump into the other car, the worse the deal is on the Chrysler. You would be better off getting $3-5k off invoice or zero percent financing.

Here is the list of cars that are included in the program.

If you look at the allotted program gallons, multiple by $1 to get the actual realzied savings. About $1500-$2500.


http://www.chrysler.com/en/refuel/index.html



eligible models > Bonus Cash > Average MPG >l allotted program gallons

Chrysler 300 $500 20 1,800
Chrysler 300C $1,000 17 2,118
Chrysler Aspen $1,000 15 2,400
Chrysler Pacifica $500 17 2,118
Chrysler PT Cruiser $1,000 22 1,636
Chrysler PT Convertible $0 22 1,636
Chrysler Sebring Sedan $0 21 1,714
Chrysler Sebring Convertible $1,000 21 1,714
Chrysler Town & Country $500 19 1,895

Dodge Avenger $0 21 1,714
Dodge Caliber $0 24 1,500
Dodge Charger $500 18 2,000
Dodge Charger RT $1,000 18 2,000
Dodge Grand Caravan $500 19 1,895
Dodge Journey $0 20 1,800
Dodge Magnum $1,000 18 2,000
Dodge Magnum RT $1,500 18 2,000
Dodge Dakota Club Cab $1,000 16 2,250
Dodge Dakota Quad Cab $1,000 16 2,250
Dodge Durango $1,000 15 2,400
Dodge Nitro $0 18 2,000
Dodge Ram 1500 Pickup $3,000 15 2,400
Dodge Ram 2500/3500 Pickup $2,000 15 2,400

Jeep Commander $1,000 15 2,400
Jeep Compass $0 24 1,500
Jeep Grand Cherokee $1,000 16 2,250
Jeep Liberty $0 18 2,000
Jeep Patriot $0 23 1,565
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Last edited by chuck92103; 05-26-2008 at 08:52 AM.
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      05-26-2008, 08:48 AM   #15
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      05-26-2008, 09:51 AM   #16
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Quote:
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come tell me that when you're paying above $11 per gallon..

This is for Americanos..... Doesn't apply to Oslo, Helsinki, Gotenburg my friend. You have royalty to feed.
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      05-28-2008, 12:48 AM   #17
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Quote:
Originally Posted by shpuntik View Post
Hmm... The questions, for the most part remain unanswered.

And as far as paying the delta over $2.99, what if you use cash to pay for gas?
some gay stations actually give a discount, for example, valero
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      05-28-2008, 10:18 AM   #18
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I got gas today for 3.52/gallon. Grocery store gas discounts ftw.
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      05-28-2008, 10:26 AM   #19
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some gay stations actually give a discount, for example, valero
gay station? haha.
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      05-28-2008, 11:37 AM   #20
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Don't forget the fear factor. There are a lot of people that think gas will continue to go up in price. So, while today it is $4 a gallon, if it goes to $5 a gallon or $6 a gallon they think they are getting a great deal.
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      05-28-2008, 12:16 PM   #21
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Quote:
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Don't forget the fear factor. There are a lot of people that think gas will continue to go up in price. So, while today it is $4 a gallon, if it goes to $5 a gallon or $6 a gallon they think they are getting a great deal.

This is what smart companies / people do....prey on the scared and the stupid.
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      05-28-2008, 12:50 PM   #22
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I thought, at least for Jeep, you can get 0% AND the 2.99 gas card. Still doesn't make a whole lot of sense for anyone but the marketing genius who won't care if it goes to $11.
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