buy a new car, get free or discount gas

I saw this article on MSN....we looked at a new dodge ram pickup, and was offered the 2.99 gas, however, we had to give up all our incentives in order to get it, didn't sound like that great of a deal to me.



Time was when automakers would slap a wad of cash on a car’s hood to shift it off a dealer’s lot. These days, with gasoline prices climbing to new record highs almost daily, they’re slapping down a can of gas instead.

With the summer driving season just around the corner, Chrysler recently launched its “Let’s Refuel America” program — an offer that caps the price of gasoline at $2.99 a gallon for three years for people who buy or lease new vehicles from the maker of Dodge and Jeep vehicles.

The automaker, which was acquired last year by private equity firm Cerberus Capital Management for $7.4 billion, said this week that the gas deal has has resonated with consumers and raised traffic on the Chrysler Web site by 25 percent since it began May 7, and so it has extended the promotion through July 7.


“Boy, have we gotten a great response,” Chrysler’s Vice Chairman and President Jim Press said on a conference call with reporters. “This has really resonated with the needs and the worries and concerns that customers have.”

But free-gas deals rarely work out well for automakers, experts say, and Chrysler risks coming off as insensitive for encouraging Americans to drive more at a time when soaring fuel costs are making most aware of the nation’s overuse of energy. And in some cases car buyers might be better off taking advantage of a rebate or low-interest finance deal.

Cheap gas deals are not new. Japanese automaker Suzuki has made a similar offer to Chrysler’s in the United States, offering free gas for the summer through June 30. And in recent years, a number of automakers — including General Motors, Ford, Mitsubishi and Volkswagen — have offered cut-price gas deals to lure shoppers to their vehicles. The thinking is that gas-price sensitive Americans will find an offer of cheaper fuel something that’s tough to resist.

Gas deals are usually offered in times when sales look shaky, as they do this year. U.S. auto sales are expected to be weak in 2008, dropping to their lowest levels since 1995 because of rising gas prices, a harsh economic climate and a dearth of appealing new models on offer.

But the deals are little more than a gimmick — they’re not often successful for automakers, and they’re not always in the best interests of car buyers, notes Philip Reed, senior consumer advice editor at automotive research Web site Edmunds.com.

“People tend to get panicky when it comes to high gas prices, and that can mean a snap decision — but that could cost them,” he said.

“If someone is wondering whether to take a deal such as the $2.99 gas deal Chrysler’s offering they should look at the math first, because they might be better off going for a zero-percent financing deal,” he continued. “The interest on a car loan can be $50 a month, and that buys a lot of gas, and a rebate of between $2,000 and $4,000 is not uncommon these days, and it could take a while to make back that amount with the savings you’ll get from cheaper gas.”

Chrysler’s deal caps gas at $2.99 per gallon for new car buyers with Chrysler paying the rest. It covers most of the automakers models and is based on 12,000 miles of driving per year and the vehicle’s government fuel economy rating. Video

Chrysler’s gas deal
May 6: Chrysler is offering new car buyers a card that locks in the price of gasoline and diesel at $2.99 a gallon for three years. CNBC’s Phil LeBeau reports.
CNBC

she just took delivery of a Jeep Liberty. I could not understand why she would trade in a 2004 Kia Optima sedan and get a larger vehicle that burns more fuel. I tried, God knows I tried to instill the least bit of common sense in that girl and she's always ignored my advise. I just know she's going to hit her mother up for gas money at least once a month.

Duh.


:rofl:

to replace my old oldsmobile. I figure, I drive maybe 30 miles a week if that, hopefully I won't see too much of a difference. So far the past 3 weeks so good, still driving on the tank full that the dealership "gave" me (it was the least they could do)