Chrysler's $2.99 gas card promo pretty worthless, for now
Oh well. Those Chrysler "Let's Refuel America" gas cards undoubtedly sounded good to car buyers over the summer when gas was well over four bucks and it seemed like there was no limit to how high the price could go. Offered in lieu of rebates, the gas cards essentially locked drivers into the then-cheap pump price of $2.99/gallon. Now, several months (and countless hysterical media reports) later, the economy is in the tank and so, as it happens, is the price of gas. In what feels like a time warp, $2-per-gallon gas is suddenly not uncommon. That's great news for drivers in general, but less so for drivers holding the $2.99 gas cards, which don't seem like such a hot deal anymore. This is the gamble you take when you agree to a fixed price on a commodity subject to market fluctuations. It's the same issue some people now face with heating oil: over the summer, customers who locked-in a contracted price in fear of astronomical costs this winter are now set to pay through the nose, while others who gambled and decided to just pay market price are at an advantage. The good news for the Chrysler gas card holders: the price is good for a couple more years, so if gas shoots up again, they're back in the game. Thanks for the tip, Soh Won Cha!
[Sources: BNet, KPTV]
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Reader Comments (Page 1 of 3)
neptronix 1:38PM (11/24/2008)
BAHAHAHA!
I totally forgot about this promo.
Whoever got suckered into this has probably been kicking themselves in the ass lately. And the company managing this is probably laughing all the way to the bank.
But this is the typical chrysler buying experience. Doesn't take long for the regret to kick in.
I hope this company folds. I hope that the requirements for the auto bailout are so high that chrysler can not meet them. This is the most short sighted, retarded auto company in the world. Chrysler is like Daewoo's retarded step cousin.
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Mr Cool 3:17PM (11/24/2008)
This post just won ^_^
Conundrum 7:38PM (11/24/2008)
Yeah loss of competition and reduced choice is always good for the consumer. You likely would love it if everyone had the choice to drive a Camry or Corrolla and could choose either black or white. We don't need anything else in the market!
Not to mention many folks sent home with no income to pay thier mortgage, heat thier house, feed thier kids, pay for college and medical bills. Which of course hurts you and I due to higher unemployment, more home forclosures, higher demand on our tax dollars to fund the programs to support them and thier families.
You don't have to buy a Chrysler but I feel you are off base to be wistfully elated about the demise of a major American company unless you are from a foreign country and do not care about the USA, you tow the line for a competitor who hopes to reap the benefits of a lost competition, or you are too young or naive to realize what you are wishing for. If you are none of the above I wish the same fate to you and yours!
From My Cube 1:37PM (11/24/2008)
ha, you bought a chrysler and got screwed by the gas card
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Kotse 1:48PM (11/24/2008)
"ha, you bought a chrysler and got screwed by the gas card"
Screwed 2x!
Seminole 1:37PM (11/24/2008)
I think I would be more upset about buying a Chrysler product then my gas card being worthless.
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rsfourever 3:29PM (11/24/2008)
than
Seminole 7:49AM (11/25/2008)
It's the internet. Get over it.
Mobius_1 1:38PM (11/24/2008)
Coolest tipster name ever.
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John Johnson 1:43PM (11/24/2008)
Eh, this still guarantees you'll never pay more than $2.99 for gas. Of course, I would have MUCH rather had the rebates - but hey, who wouldn't like a peace of mind that their gas will never cost more than 3 PT Cruisers.
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Warghost 4:52PM (11/24/2008)
Niiiiice!
Red 1:59PM (11/24/2008)
I think I saw gas was down to $1.49 somewhere in Texas. Across the street from that gas station it was down to $1.39. Crazy what can happen when the demand just isn't there and analysts and "experts" finally stfu for a second...
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kal326 3:50PM (11/24/2008)
Its been under $2.00 in MO for weeks. It was $1.43 this morning. The moral of the story: $2500 in the hand > (x-2.99) * (12,000/MPG)*3
montoym 8:21PM (11/24/2008)
Running into the low $1.40's where I am as well. It's a welcome retreat and just in time for my weekly runs to the mountains for snowboarding. It cost me about $25 to fill up my car last week and that was with Premium. Much better than the $55+ I was paying over the summer.
Will cost a lot less to make the trips this season, I'm glad for that. Now we just need more snow.
Gary Blomquist 2:00PM (11/24/2008)
Chrysler did some fuel hedging not unlike Southwest Airlines, and a few others.
As for Chrysler customers, in the long run, I'll bet my money that a lot of folds saved a lot of money while the prices were above $2.99/gallon.
Folks who needed premium, and diesel, probably did fairly well.
There was no way anyone could predict when the big bubble on crude prices was going to drop.
I think Chrysler did a very innovative idea.
Ok, now the cards aren't worth the price of a wooden nickle. For awhile there, many people did benefit and saved a lot.
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brian 2:21PM (11/24/2008)
No, the people who signed up for it did not "save a lot." It doesn't cover premium or diesel fuels and it's only for 12k miles per year or 230 miles per week. Even if you get a low 23 mpg, you are only allowed to get the "$2.99 gas" for 10 gallons. Gas peaked in my area (Bethesda, MD) at $4.29 for regular. So at it's peak, these "$2.99 gas" people were saving about $13 per week. When gas dropped to $4, they were saving about $10 per week. Even with gas at $3.50, they were only saving about $5 per week.
It blows my mind that people took this incentive instead of a rebate.
XJ 2:38PM (11/24/2008)
Customers could choose between the gas card or a $2,500 rebate.
I guess customers were expecting...The average customer drives 12kmiles/year at 25mpg (and the program is limited to 12kmiles/year max savings anyway). Assuming gas averaged $5/gallon for the next 3 years = $2,880 savings total. That's $330 more savings for the average consumer in lieu of the rebate.
Well, that extra $330 gamble turned into this...The program started in May, and gas averaged about $4 (actually less) for the past 6 months, so that equates to 6kmiles/25mpg x 1mpg savings = $240 savings between May and now. So now you saved $240 instead of the $2,500 GUARANTEED rebate, and chances are you won't save enough on the card to get anywhere close to $2,500.
Moral of the story. Take the rebate.
XJ 2:41PM (11/24/2008)
Lol, Brian. I'm from Rockville. Small world...
big j 6:22PM (11/24/2008)
innovative idea? sorry I'm going to have to disagree, it's "innovative ideas" like these that put Chrysler into the crapper, instead of pumping out incentives, rebates, and other cheap trick tactics they should have put that money into R&D and quality control.
Gstill 2:14PM (11/24/2008)
I totally thought of this when I saw gas at $1.79 a gallon in my town.
The $2.99 only covered regular and diesel from what I understood. I don't think too many people actually bought into this program. It didn't exactly help Chrysler much.
Maybe if they can start a thing, if Ford stock goes up to over $3/share, you get free XM satellite radio for life.
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