$ 2.99 diesel

[Paddy McMahon]

Anyone wondered about how Chrysler is pulling thsi off. I imagine that this is their way of buying into the futures market of fuel prices. They know that the cost is bound to continue to rise and they have found a way to prepurchase fuel futures at close to $3 a gallon. Playing devils advocate I would wonder if this "incentive" that they are currently offering will ultimately help to foster the ongoing rise in fuel prices by creating demand and initiating a prior subsidy for fuel that has yet to be utilized by the consumer. As a business I can not imagine Chryser doing this in anything but their own best interest-with little regard for us consumers.

 

[Bob4x4]

Not that complicated,they are just subsidizing the cost for 3 years at 12k mi per year. With a bit of small print thrown in.



Bob

 

[george]

Yeah you get the fuel for $2. 99 but they take away all the other rebates as I understand it and in the long run it works out pretty close to the same.

 

[rbattelle]

Yeah you get the fuel for $2. 99 but they take away all the other rebates as I understand it and in the long run it works out pretty close to the same.

Chrysler isn't stupid, and they're not running a charity. You can be sure that the fuel offer is either costing them less than the rebates, or they work out just about the same.

If they're smart, the fuel program is a little less expensive than the rebates are. I figure a lot of people will go for the fuel program.

At 12k miles per year and an average economy of 15 MPG that's 800 gallons of fuel per year. Say fuel cost over the 3 years runs $5/gallon on average. Then the cost to Chrysler would be:
($5-$2. 99)*(800*3) = $4824

Which I believe is slightly less than the rebate offer.

Ryan

 

[Cummins Cowboy]

I think its a pretty crappy incentive actually, I think you would be far better to go with 4k incentive instead, I ran the number on say a minivan that gets 20mpg, even if the fuel went up to 5 bucks a gallon the incentive would only be a little more than 2k

 

[Bob4x4]

Ryan, you pegged it... ... .



Bob