Consumer Reports: Chrysler gas deal not a good idea
Chrysler's "Let's Refuel America" incentive, in which the automaker gave out gas cards which guarantees fuel at $2.99 a gallon, has not proven very successful at all. After the program was initially launched, critics were quick to point out its flaws, and it appears that the car buying public was smart enough to see past the tactic as well. It's easy to understand that offering fuel at lower prices is no way to reduce its consumption, but it's the unfavorable financial information which likely proves the most harmful to the campaign. After all, it's difficult to get excited about something which is going to end up costing you more money in the long run.Consumer Reports did a bit of math itself and found the incentive program to be lacking in sense. The results of its numbers crunching can be found here, though the short version is that buyers who choose normal incentives will save money over those who choose the gas card. Note, Consumer Reports only compared vehicles from Chrysler that it recommends.
[Source: Consumer Reports]
Reader Comments (Page 1 of 1)
tankd0g 11:09AM (6/24/2008)
I assume there is a gallon limit on these cars? Otherwise it would make sense to get a 1000 gallon tank at home and fill it up.
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Nick 12:35PM (6/24/2008)
I guess that all depends on where you think the price of gas will go. If it stays near $4, yes, its not a good deal.
But what happens if Israel bombs Iran and a large hurricane hits the gulf? Think gas prices won't top $8 in that sort of event?
Its based on speculation as to where the market will go. While right now we are seeing pullback in consumption due to high prices (which should help stabilize prices), we are only one supply disruption away from another large jump in gas prices.
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Der Alte 10:30PM (6/24/2008)
Consumer Reports actually recommended something from Chrysler?
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Chris M 10:35PM (6/24/2008)
To begin with, it broadcasts how lousy the fuel economy is. Secondly, if fuel costs jump dramatically (like they have in the recent past!) the cost could be severe. Third, if costs get out of hand, it could mark then end of Chrysler, making their promise of "cheap gas" worthless.
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Bill 6:50AM (6/25/2008)
They didn't consider that $2.99 deal also applies to diesel-fueled vehicles.
If you need a big diesel pick-up for work, it would be very attractive to be able to buy fuel for $3'galloninstead of close to $5/gallon.
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Edmond 4:52AM (6/26/2008)
In case any of you is not familiar to the Chrysler's Terms here you go : You will be able to get gas at $2.99 ( only 87 [octane rating] allowed by the way ) only for the first 12,000 miles or a regular( typical) one year drive.
Now let's do the math :
Average miles per gallon of any Chrysler car ( realistic ) = 15 mpg .
12,000 % 15 = 800 gallons
Basically you need 800 gallons on gas to drive for 12,000 miles.
Now 800 gallons times $2.99 ($3) is $2400.
Currently in New York regular gas (87) is at $4.39,
$4,39 * 800 gallons = $3512
Chrysler is saving you $1100 which is the same as cash back incentive just in a different way to steer people into thinking it's a good deal.
Even with gas at $5 you're not saving or being "smart" when going for Chrysler cars.( or just plain any Americans)
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tim 11:19PM (11/20/2008)
Too bad gas is $1.65 a gallon now..
What a bunch of fools ... ha ha ha
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