the low down on green living
May 23rd, 2008
Oh Please: Chrysler Offering $2.99 Gas for 3 Years
Chrysler has recently launched its “Let’s Refuel America” campaign in which it claims to offer Americans protection from rising gas prices. Anyone buying a Chrysler in the month of May will get the deal. Here’s how it works: each qualifying buyer will get a ‘gas card’ that has been linked to their own credit card, but when they gas-up they will only pay $2.99 a gallon with Chrysler charged the difference. You can read more about it here.
This is a really lame-brained scheme. It reminds me of the McCain-Clinton proposal to cut federal gas taxes during the summer– it’s the wrong solution for our economic woes. Yes, we’re all hurting from gas prices and we need relief (what are the oil companies offering consumers in terms of help, hmmmm? anyone? hello?). But what Chrysler is offering is an incentive for consumers to ignore gas prices and drive, drive, drive– producing more green house gases and increasing global warming.
Why doesn’t Chrysler just give buyers a rebate? It’s hard to estimate the potential cost to Chrysler of their offer over the three year period, but it could be huge. Let’s say that gas stays at $4 per gallon for the rest of this year and then goes to $4.25/gallon in 2009 (probably too conservative), and then to $4.50/gallon in 2010. The average American drives 12,000 miles per year and gets 25 MPG… so that’s over $1800 that Chrysler would have to pay to cover the gas price differential. How about just offering buyers a $1000 rebate? That would 1) help Americans NOW; 2) save Chrysler money over time and 3) reduce the incentive to burn fuel and pollute our skies.
We understand Chrysler is desperate to sell cars– but they’d probably be doing a whole lot better if they’d developed more fuel-efficient cars years ago. Hey, it’s Friday afternoon so I think I’ll jump in my Prius and get 43 MPG on the way home….
Have a great holiday weekend everyone!
Comments
Anita
May 23rd, 2008 at 6:17 pm
Actually for people who don’t have money to buy hybrid or struggling, this is a GREAT idea. don’t assume people can afford “green” cars. Even summer gas holiday is a good idea if you are a single mom of 3 kids where every is counted.
Don’t assume everyone is well-off as you maybe.
Low Impact Living: Oh Please — Chrysler Offering $2.99 Gas for 3 Years : Gas 2.0
May 28th, 2008 at 11:22 am
[…] attempt to lure car buyers with the promise of gas at $2.99/gallon is, well, lame. This post was originally published on Friday, May 23rd, […]
Eric
May 28th, 2008 at 2:22 pm
For every card given Chrysler is putting money in oil tied options with the money that would have been given as a rebate. So rather than give you that 1000 now they invest it so that if prices skyrocket the returns on the investments would equal or surpass the rise in the gas price. Also gives them more cash up front from not having to pay the rebate.
todd
June 7th, 2008 at 4:32 am
I just bought a 2008 dodge ram quad cab 4×4. I took the gas card , the catch is instead of a 5500.00 rebate you only get a 3000.00 rebate if you take the card. I’m aloted 800 gallons a year for three years. I think the 2500.00 I gave up in the rebate will more than pay for itself. I do belive gas will be 5.00 a gallon in a year. I can’t wait to be paying 2.99 a gallon when everyone else is shelling out 5.00. Thanks Chrysler your the best
Jessica Jensen
June 10th, 2008 at 2:59 pm
Todd do you realize you are on an environmental website?
zach @ Pennywise
June 15th, 2008 at 11:24 am
as I recall, I believe that the fine print puts a cap on both the amount of money you’ll spend and the number of miles you can drive to qualify for this deal. . .
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