Chrysler's $2.99 gas card promo pretty worthless, for now

Alex Nunez — Mon, 24 Nov 2008 13:30:00 EST

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]

Chrysler's $2.99 gas card promo pretty worthless, for now originally appeared on Autoblog on Mon, 24 Nov 2008 13:30:00 EST. Please see our terms for use of feeds.

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Only 5-10% of customers choose Chrysler's $2.99 gas guarantee

Jeremy Korzeniewski — Tue, 10 Jun 2008 13:29:00 EST

Filed under: Car Buying, Marketing/Advertising, Chrysler, Dodge, Jeep, Earnings/Financials

It looks like car shoppers have been smart enough to see past Chrysler's cheap gas guarantee. Despite Chrysler's extension of the offer for an extra month, a very small percentage of actual consumers have actually chosen the gas guarantee over the old fashioned cash back options. As we've reported in the past, the incentive wasn't really as good as it seemed once the math was done. As was pointed out by the Union of Concerned Scientists, a 3 mpg bump in efficiency would be equal to the savings Chrysler was offering. Additionally, Chrysler not only has the worst fleet in terms of fuel efficiency, but many of its products haven't exactly set the world on fire based solely on their own merit. The performance of the incentive deal suggests that in today's world average consumers may not want to be seen driving gas guzzling vehicles, regardless of what they're paying for fuel. Good products are still the only real way to guarantee sales, though cash back incentives still have an impact. Perhaps Chrysler should have offered firearms.

[Source: Auto Observer]

Only 5-10% of customers choose Chrysler's $2.99 gas guarantee originally appeared on Autoblog on Tue, 10 Jun 2008 13:29:00 EST. Please see our terms for use of feeds.

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