$2.99 a Gallon of Gas?
By Ed Beckmann
Gas prices continue to rise, causing car sales to slow down. To help drive more traffic into their showrooms, the auto manufacturers are offering rebates and in some cases, even offering relief on gas prices for the next three years.
Consider the “Let’s Refuel America” program offered by Chrysler, (parent company to Dodge and Jeep). The program offers you savings that only get better for you as gas prices continue to climb. You might feel pretty satisfied with yourself as gas prices soar higher while you’re comfortably locked in at a $2.99 per gallon maximum.
Is this a good deal, or can you do better?
The $2.99 a gallon of gas guarantee is but one incentive out of at least three options available when purchasing a newer Chrysler, Dodge or Jeep vehicle. You can also select a cash-back incentive or 0% dealer financing in lieu of the gas price guarantee. It would appear the vast majority of buyers are taking Chyrsler up on the cash-back option, since it lowers monthly car payments.
The real question is: how much of a gambler are you? Who would have thought two years ago that we’d be paying over $4.00 for a gallon of gas today? Will gas prices climb even higher to unimaginable numbers in the next two or three years? If this trend continues, and it is possible, then this offer could prove to be a smokin’ deal.
Or, gas prices could drop back down to the neighborhood of $3.00 a gallon again and you could watch what you thought was a great incentive dwindle in value.
Chrysler, Jeep and Dodge have many passionate advocates for their vehicles. There’s the exciting PT Cruiser, the rugged Jeep Grand Cherokee, the fashionable 300C, and the powerful Charger, among others where the gas price incentive is available. On the potential downside, some of these vehicles can get a little thirsty, causing you to perhaps buy even more “cheap” gas, thereby eroding into some of your savings.
Be aware that the gas savings are not “all you can buy, all year long.” Each vehicle is tied to a maximum allotted number of gallons per year and that this amount does vary by make and model. So there is a cap on your savings each year, no pun intended. You would need to weigh out the gallons allotted per year, by the potential dollar savings on gas, to how the cash-back incentive would compare. You may find that taking the rebate, 0% financing, or even better, negotiating your own great deal, might be the better way to go.
If you sell your vehicle, the gas guarantee goes away too. It’s not transferable. The program is also tied to your personal credit card. If you change credit cards at any time during the three year period, you pay a $25.00 “reinstatement” fee associated with each new card.
As with anything you buy, don’t let what simply looks like a great offer blind you to potentially better options, such as buying a used vehicle.
Or you could just forget the whole thing entirely, ride a bicycle and pay $0.00 per gallon.
Next Steps
For more information about buying a new or preowned vehicle,
visit Automotive Avenues.
