Interesting idea from Chrysler

[PeteyPirate]

So if gas goes to $2.75 a gallon, you're forced to pay $2.99? You think that's the racket?

Yes.

Why would Chrysler give you gas for $2.99 if it was going to leap to $4 or $5? If you buy 80 gallons a month they would be eating $80 a month or $960 a year. That is close to $3,000 for three years.

Assuming that worst case scenario came to pass, Chrysler would still be no worse off with that $3000 loss than if those cars never sold at all, because that IS what's happening to them now.

Perhaps you hadn't noticed but Chrysler is in dire straits right now. Their dealerships are backlogged in gas guzzling inventory all across the country. They need to move vehicles and they need to move them NOW. It's primarily desperation that motivated this idea. No doubt they hope prices drop below $2.99 and might have reason to believe it'll happen, but they've no crystal ball either.

It also helps that Chrysler is owned privately and therefore free to try wacky things that might send public investors scurrying away.

 

[Diabeetus]

So if gas goes to $2.75 a gallon, you're forced to pay $2.99? You think that's the racket?

Yes.

Why would Chrysler give you gas for $2.99 if it was going to leap to $4 or $5? If you buy 80 gallons a month they would be eating $80 a month or $960 a year. That is close to $3,000 for three years.

Assuming that worst case scenario came to pass, Chrysler would still be no worse off with that $3000 loss than if those cars never sold at all, because that IS what's happening to them now.

Perhaps you hadn't noticed but Chrysler is in dire straits right now. Their dealerships are backlogged in gas guzzling inventory all across the country. They need to move vehicles and they need to move them NOW. It's primarily desperation that motivated this idea. No doubt they hope prices drop below $2.99 and might have reason to believe it'll happen, but they've no crystal ball either.

One of everybody's favorite bands from the 80s decided to go a new direction in the new millennium, adding controversial bandmate Chrysler.

 

[HejiraHenry]

Good Doctor will want to add this to the running list of proclamations I have made:

If McCain wins, gas will be $5 a gallon.

And if one of the Dems win, gas will be $10 a gallon.

 

[mustangj17]

Great idea.

Except none of us can afford a new car because we're journalists.

 

[mustangj17]

So if gas goes to $2.75 a gallon, you're forced to pay $2.99? You think that's the racket?

Umm, if gas goes below $2.99/gallon, just don't use the card when you buy gas.

Fine by them. They aren't losing money, you already bought your car, and without another incentive like 0 percent APR, or $2,000 cash back.

 

[User 1019]

So if gas goes to $2.75 a gallon, you're forced to pay $2.99? You think that's the racket?

Umm, if gas goes below $2.99/gallon, just don't use the card when you buy gas.

If this works like a future, then you are locked into paying that price.

I was pitched this for natural gas a year or two ago, but nat gas stayed pretty stable compared to oil.

Sounds like a stock option. If the price stays above the target, you have something valuable. If it goes below, you have a paperweight. But nobody forces you to use either the option or the gas card.

But you pay quite a bit for that option.

 

[Football_Bat]

Don't you have to use high-test gas, or at least 89 octane, in most Chryslers anyway? For that kind of gas to go to $2.99, regular would have to drop to $2.79 or below. Making this an even more lucrative deal.

 

[joe]

Is Chrysler going to have its own pumps at the dealership? I don't see how giving you a gas card for $2.99/gallon gas is going to work at a pump when it's $3.49. Is Chrysler going to automatically pick up the difference, too?

Somebody explain, please.

 

[Simon_Cowbell]

12,000 miles a year...what a novel concept.

Plus, they'll term a car that actually gets 19 mpg as one that gets 24.

 

[BTExpress]

Is Chrysler going to have its own pumps at the dealership? I don't see how giving you a gas card for $2.99/gallon gas is going to work at a pump when it's $3.49. Is Chrysler going to automatically pick up the difference, too?

Somebody explain, please.

The gas card is linked to your other credit card(s).

Gas station will bill you $2.99 for a gallon, and they will bill Chrysler the difference.

 

[joe]

Is Chrysler going to have its own pumps at the dealership? I don't see how giving you a gas card for $2.99/gallon gas is going to work at a pump when it's $3.49. Is Chrysler going to automatically pick up the difference, too?

Somebody explain, please.

The gas card is linked to your other credit card(s).

Gas station will bill you $2.99 for a gallon, and they will bill Chrysler the difference.

Sounds like a cluster**** all the way around. I can see stations, or chains, opting out of that.

 

[BTExpress]

The accounting headaches may be on VISA or Discover or whatever card the gas card is linked to.

Shouldn't be a problem for the individual stations.

 

[Simon_Cowbell]

So, we are talking about 1,440 gallons of gas (about $3,000) for a car that is labeled as 25 mpg on the highway.

I have seen such a car get as few as 15 miles per gallon (city driving + BS mileage sticker numbers).

That would extrapolate to 21,600 miles one would be getting a rebate for, not 36,000.

It's still a rebate, but not nearly of the value some might think.

Plus, at the end of those three years, you are still owning a POS Chrysler.