Chrysler's $2.99 A Gallon Gasoline Ad Campaign Exposed

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Have you seen those commercials promoting trucks and SUVs and if you purchase right now, you will only have to pay $2.99 per gallon of gasoline? Let's take a look at that...

Here's what some have to say about this program:

I know. I can't believe people think it's such a great deal. Lets say that the vehicle you buy gets 15 MPG, which is pretty bad. That means you qualify for $3,00 gas for your first 800 gallons each year. That's 2,400 gallons over the three years.

Now lets say that gasoline is $5 per gallon. Sure, that means that you would have saved $4,800 over the span of three years ($1,600 per year) but you give up a lot just to get that. And I'm sure they won't bargain as much with the price of the vehicle or your trade in value. In the end, you're going to pay for it anyway.

And that's assuming that gas is at $5 per gallon . If I were to buy one here now, gas is only $3.97 today in many places. Sure it's going up, but not enough to make any "deal" like this worth it.

That's to say nothing of the fact that 1) you have to forfeit the standard Chrysler incentive package to get the $2.99 guarantee, 2) it only covers the first 12000 miles (average annual driving is at least 15k), and 3) the total savings on this guarantee will only add up to the same as the forfeited package savings in the event of a much higher increase in gas prices than is expected to occur over the next 3 years. In other words, false reassurances for people who don't bother to do even cursory research.

Even if the price of gas averages $5 a gallon they make out. That means that it can be $4 for the first year (like it is here, or at least just under $4), then $5 a gallon next year, then $6 a gallon the third year. Even with those numbers, they still win.

Something else to think about. People are buying these things to get gas for $3 per gallon. Lets say they have a 15 gallon tank. That means that they can get 225 miles per tank, which will cost them $45 (20 cents per mile.)

Now lets say those same people say screw it and buy a car that gets 30 MPG (and those are easy to find.) Now lets say they have a 15 gallon tank as well. But lets say that they are paying $6 per gallon (a LOT higher than it is now.)

It will cost them $90 to fill up and they will get 450 miles to that tank. Again, breaking it down you still pay 20 cents per mile driven.

So even if gas is $6 per gallon you can at least break even, if not do better, by avoiding these gas guzzling beasts. Now fast forward three years and he SUV owners have to pay full price too. Doesn't take long to figure out who would be screwed then.

So basically, if you're buying the SUV because you want it then fine. I have no problems with that. But if you're buying it to get cheap gas, then as teh saying goes "You're doing it wrong."




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