Chrysler offers locked gasoline price for 3 years...

That's right, the automotive manufacturer Chrysler is offering people who buy new cars from them, a card that guarantees a locked rate of $2.99 per gallon for 3 years.

They are calling this a "gas protection policy" to eliminate further spikes in fuel prices for their customers.

Here is a link to the full article.

So what do you think about this? Is this a good idea or simply another gimmick to sell cars?

I think someone knows something nobody else does, $2.99 a gallon, obviously customers wont use the card until its gets to $3.00, however they may have bitten off more than they can chew if the price goes say over $5.00 a gallon? sure its a gimick but i can see how it could do a lot of harm to chrysler if they get it wrong.

Well, here's an article that states that in 2 years, oil is expected to hit $200/barrel.

This could be some scare tactic. Who will be able to use anything on $200/barrel?

LONDON–Oil could shoot up to $200 within the next two years as part of a "super-spike" driven by poor growth in oil supplies, investment bank Goldman Sachs said in a research note.

"We believe the current energy crisis may be coming to a head, as a lack of adequate supply growth is becoming apparent," Goldman said in the note made available to Reuters on Tuesday.

Oil hit a new record near $121 a barrel on Tuesday, continuing an advance which has seen it double over the past 12 months.

"The possibility of $150-$200 per barrel seems increasingly likely over the next six-24 months, though predicting the ultimate peak in oil prices as well as the remaining duration of the upcycle remains a major uncertainty," Goldman said.

Source


And why/how can Goldman-Sachs predict that far down? Is it merely speculation or do they 'know' something we don't?


As the thread topic mentions, better start buying Chrysler

Well considering where I am living it's running at $3.65 a gallon right now, that's a pretty significant savings right off the bat.

Now, considering my wife and I are in the market for a new car right now, I'll have to think hard about getting a Chrysler. We currently drive a Chrysler and have never had any problems with it, so this seems like a great idea to me.

The only concerns I have are in line with yours. How will they still be able to honor this if gas goes up significantly higher?

I owned a Chrysler for 3 years. It died with 109,000 miles on it. My Honda has 220,000 miles on it and still runs like a new car.

They also have a lifetime drive train warranty on some of their cars, meaning if the transmission or engine goes out EVER (and it always does quickly) they will replace it for free for as long as the car is drivable.
Drive Train Warranty

Seems to me they'd save money by just making cars that don't suck.

Looks like we can plan to see Chrysler become a thing of the past in the next couple years.

ETA: My parents have hated every Chrysler they've ever own, but bought one recently just for the drive train warranty, because the thing will literally last FOREVER.

Here's a conversation my father had with the salesman...

Dad-"You know you're going to lose money for your company on this sale"

Salesman-"Howso?"

D- "Well I'm never getting rid of this thing, why would anyone? I'll just keep getting the transmission and engine replaced on your dollar"

S- "Statistics state that everyone who buys with this warranty will have a new car before the drive train goes out anyway."

D- "Well those people are stupid."

[edit on 5/6/08 by SantaClaus]

[edit on 5/6/08 by SantaClaus]

Holy crap!

If I were in the 'states I would buy Chrysler's cheapest car, get the card and use it to fuel my merc!

Thats an incredible deal... a definite deal swinger for those who are seriously considering buying a new car.

Then again, if oil spikes and petrol prices go up to the level that we Brits are currently paying ($10/gallon), expect Chrysler to go into administration. Chapter 11. Finito.

I have a 2006 Chrysler 300 v-6 engine. It does great on gas (for it's size).

Anyway, I was just at the dealership last night because my lease is up this month and I am either going to buy a brand new Chrylser 300 or a brand new very top of the line Honda Accord. The dealership never said anything about such an offer.

If it's true I may stick with Chyrsler


and btw I LOOOOOOOOOOOVE my 300.

[edit on 5/6/2008 by MauiStacey]

reply to post by 44soulslayer


Great idea.

Would they file for chapter 11 or would the govt bail them out, again?

i would like to see the fine print, probable a limit of 5 gal. per week or something like that.

Here is a link that contains some of that fine print information...

Gas Deal

The total amount of fuel that can be bought at the locked-in price will be computed on the basis of the new vehicle's federal miles-per-gallon rating and 12,000 miles of driving a year. The card is good for purchases of 87-octane regular gasoline, E85 gas-ethanol blend or diesel fuel.

Originally posted by bamaoutlaw
i would like to see the fine print, probable a limit of 5 gal. per week or something like that.

Yeah some fine print like that is probably gonna be the deal breaker.

Originally posted by Alxandro
Would they file for chapter 11 or would the govt bail them out, again?

Good point. Probably bailout I would guess. Either that or the Fed will engineer a takeover by Ford or something, a-la bear stearns.

[edit on 6-5-2008 by 44soulslayer]

Originally posted by nyk537
Here is a link that contains some of that fine print information...

Gas Deal

The total amount of fuel that can be bought at the locked-in price will be computed on the basis of the new vehicle's federal miles-per-gallon rating and 12,000 miles of driving a year. The card is good for purchases of 87-octane regular gasoline, E85 gas-ethanol blend or diesel fuel.

That's a lot less shocking than I thought it would be. 12,000 miles is a pretty healthy amount to put on a car in a year.

My thoughts exactly.

It actually seems to be a pretty good deal if your in the market.

Although I believe this offer is only good through June 5th or so. It's only a month long promotion.

So anyone considering getting that new car should probably get in gear pretty quick.

Originally posted by quintar
Well, here's an article that states that in 2 years, oil is expected to hit $200/barrel.

This could be some scare tactic. Who will be able to use anything on $200/barrel?

LONDON–Oil could shoot up to $200 within the next two years as part of a "super-spike" driven by poor growth in oil supplies, investment bank Goldman Sachs said in a research note.

"We believe the current energy crisis may be coming to a head, as a lack of adequate supply growth is becoming apparent," Goldman said in the note made available to Reuters on Tuesday.

Oil hit a new record near $121 a barrel on Tuesday, continuing an advance which has seen it double over the past 12 months.

"The possibility of $150-$200 per barrel seems increasingly likely over the next six-24 months, though predicting the ultimate peak in oil prices as well as the remaining duration of the upcycle remains a major uncertainty," Goldman said.

Source


And why/how can Goldman-Sachs predict that far down? Is it merely speculation or do they 'know' something we don't?


As the thread topic mentions, better start buying Chrysler

I heard on the local morning drive radio (Pat Campbell) that the Department of Defense was budgeting fuel costs for the future based on oil trading at $220 a barrel! Think they might know something we don't? I've searched around on the Internet a little but I haven't been able to come up with a source yet. Listening to PODCAST to see if there was a mention of the source.

I'm amazed there are not more "fuel banks" in our communities. They offer gas in bulk. You can buy hundreds of gallons at a time for a fixed cost and when the market price goes above your purchase price per gallon you tap into your reserve. If the cost goes below your cost you just buy elsewhere. A NO BRAINER!

I have a locked-in natural gas contract for my home from 2004 that I just renewed. THat contract is not as flexible as a gasoline contract. I'm locked into one supplier and I cannot go elsewhere for natural gas. A gasoline "contract" is much more flexible as I outlined above.

Am I missing something here?

And you don't need to buy a new car for this deal!

FOX news story from 2006

First Fuel Banks

[edit on 6-5-2008 by Tuebor]

I think this is all about selling more Cars. But Chrysler will only profit from this in short terms, but that is what management is all about these days. This could easily break Chrysler's neck if oi continues to increase in price.
A gift for the shareholders imho until they sell all shares eventually (insiders first, on peak of course! )

I drive a Jeep Wrangler. I believe Chrysler still builds and sells the Jeeps. I also know that my Jeep has been a great vehicle for me these last 10 years. If I want to buy another vehicle, I will probably want another soft top Wrangler. No, not the baby HUMVEE model. That one looks stupid to me. I like the little 4 cylinder Jeep. I have over 200,000 miles on it, I have never had a tune up, change the oil once a year even if it doesn't need it. But, it only gets 22 miles to the gallon. Now, if Chrysler could give this little vehicle which can go anywhere in any weather and conditions about 35 miles to the gallon, I would probably really consider buying it the next time, in about 5 years I hope at the least. But, I don't see how gas will go below 2.99 per gallon in the foreseable future. Makes me wonder what is going on. But, meanwhile, 2.99 per gallon for three yeasr isn't enough for me to buy a Jeep unless it gets more mpg than it does now. But, if something is going to happen to cause the gas to drop to less than 2.99 per gallon, then I will consider a Jeep Wranger for real. But not until I see the drop happen and stay lower for a couple years more.

$2.99 sounds like a pretty sweet deal to me. The Mobil near campus is up to $3.78

Gas goes up in upstate NY some 5-10 cents a week. I never saw it between $3.50 and $3.59 or $3.60 and $3.69; it just jumped 7-10 cents a week. It's madness

Actually I am a salesman for Chrysler Dodge and Jeep. The way the offer states is that they figure out the current average gas mileage for the 08's and then base that on 12,000 miles a year driving for three years. So lets say they allow 1800 gallons for 3 years. They then break it down to allowing 600 gallons a yeaar locked in at $2.99 a gallon. The thing that amazes me with the current offer is it icludes our Diesel trucks and grand cherokees and well! You will give up some available rebates to take advantage of the gas deal but basing my rough calculations on the average gallon of gas cost today it is basically a wash.

It's a scam.

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