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what do you think of this deal?

Discussion in 'Uncategorized Threads' started by senior smoke, May 8, 2008.

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  1. senior smoke

    senior smoke Well-Known Member

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    Chrysler Offers Gas Card as Incentive
    Buyers of a Chrysler, Jeep, or Dodge can fill up for $2.99 a gallon for three years. BY JOSEPH SZCZESNY provided by:
    2009 Dodge JourneyRemember when the prospect of $3.00-gallon gasoline was supposed to cue the death knell for the domestic auto industry? Now the prospect of keeping $3.00 as a ceiling price is being used by Chrysler as in incentive to sell its cars.



    Chrysler is hoping to jumpstart its faltering sales by guaranteeing customers they won't have to pay more than $2.99 per gallon for most of the gas they use in their new Dodge, Chrysler, or Jeep for the next three years in an innovative new program that starts May 7 and runs through June 2.



    "We want to give our customers peace of mind,” said Chrysler vice chairman Jim Press as he rolled out the new program during a conference call with reporters. “One of the things that is weighing on the minds of customers is the volatility of the price of gasoline.”



    With gasoline averaging more than $3.50 per gallon across the U.S. and touching $4 per gallon on the West Coast, the $2.99-per-gallon guarantee “takes some of the sting out of higher fuel prices,” Press said. The rising price of fuel also has helped spur the sales of small cars, which have been the weakest part of American companies’ model lines. Chrysler sales have dropped by more than 17 percent through the first four months of 2008 and its sales of trucks and SUVs have declined by nearly 27 percent.



    Under the new gas-guarantee incentive plan, officially dubbed “Let’s Refuel America,” Chrysler will pay the difference between $2.99 and a higher pump price, Press said—if the price dips below $2.99, there is no need to use the gas card.



    Gas Card Linked to Credit Card
    Here’s how it will work: The new-car buyer who chooses to take the gas offer instead of a straight cash rebate will register for a special gas card that is linked to their own Visa or MasterCard. They then pay at the pump and swipe their card. The total cost of the fill-up (it can be up to 87 octane regular unleaded gasoline, E85, or diesel) is sent to a third party that splits up the bill: $2.99 a gallon is charged to the customer, the additional 66 cents ($3.65 per gallon currently prevails in many large U.S. cities) is charged back to Chrysler, explains Steve Landry, Chrysler executive vice president of North American sales.



    There are some provisos: mid-grade or premium unleaded costs the consumer 15 cents and 30 cents more, respectively; grades higher than 94 octane are not covered; and you cannot use a gasoline card for diesel and vice versa.



    The program is limited to 12,000 miles of driving annually based on the EPA combined city and highway fuel economy rating (lead foots may find they don’t get a full 12,000 miles in real-world driving) on the Chrysler vehicle purchased under the program, Landry said.. Thus, if the vehicle gets 28 miles per gallon, the customer will be able to purchase 428.5 gallons of gasoline at the program price, Chrysler said. Another unique wrinkle is that once the card is in the customer’s hands, it can be used by other family members and to fill-up other vehicles.



    Press said teams of Chrysler experts and outside consultants spent more than seven weeks evaluating the program. He said he does not know how much it ultimately will cost the automaker, given the inability to predict future gas prices, but the company is using a hedging strategy to help minimize the impact on the company's finances. In an industry where no good idea goes unmatched, other carmakers will be watching the program closely as everyone grapples with the negative effect of fuel costs on sales.



    Chrysler isn't the first to give away gasoline. Over the years, carmakers have given away gas cards loaded with anywhere from $50 to $500 worth of fuel as an incentive to purchase. The Chrysler program, however, is unique because of its scope covering nearly every product in the company line. Only the performance SRT vehicles, the Dodge Viper, Dodge Challenger, Jeep Wrangler, and commercial vehicles such as the Dodge Sprinter are excluded from the program, Press explained, as they are known to be thirsty vehicles. The program is directed at volume vehicles designed to be more fuel-efficient.



    On certain models, such as the Dodge Ram 1500, customers who opt for the gas card will also qualify for a small cash rebate, according to Landry. Buyers can choose from the current $5500 rebate or a gas card and $3000 cash back.

    steve balistreri
     
  2. LUGNUTZ426

    LUGNUTZ426 TS Member

    Joined:
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    LETS SEE..

    GAS GOING TO 4.50 OR HIGHER

    LIFETIME WARRANTY ON ENGINE, TRANS ,TRANSFER CASE AND AXLES

    PLUS REBATES

    IF I NEEDED A TRUCK I WOULD GRAB THIS DEAL BEFORE THEY COME TO THEIR SENSES.
     
  3. Mr Newbius©

    Mr Newbius© TS Member

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    Steve ... where did you cut and paste this from, your typing has never ever been this good in the past.
     
  4. senior smoke

    senior smoke Well-Known Member

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    Mr. Newbius- you know me so very well, off yahoo at work.
    steve
     
  5. cubancigar2000

    cubancigar2000 Well-Known Member

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    It is all true, been all over the news for two days
     
  6. starship

    starship TS Member

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    If you do the math using the numbers supplies by them it is about $6oo to $650 per yr. refunded. Over the 3 years $1,800 to $1,950. Must take the gas or any dollar rebate being offered at time of sale. Great marketing gimmick but larger cash rebates have been going on for some time on most models.
     
  7. BDodd

    BDodd TS Member

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    3,594
    I'd much rather make them reduce the price of the vehicle to the point that they couldn't offer paying back some of the money I paid up front. That money doesn't come from their account, it's yours.....Bob Dodd
     
  8. halfmile

    halfmile Well-Known Member

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    If gas goes to 4 dollars it will be about a thousand a year.

    I am intrigued by the lifetime power train warranty.

    I am the guy who drives it till the road can be seen going by under my feet.

    If I could afford a new vehicle I would make them suffer.

    HM
     
  9. BILL GRILL

    BILL GRILL Well-Known Member

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    Eddie ther is more to the story than that. How about the money they raided from the co.
     
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