Chrysler has launched its own so-called economic stimulus plan, the “Let’s Refuel America” promotion, which guarantees enrolled Chrysler, Dodge, and Jeep customers gasoline prices fixed at $2.99 a gallon. The automaker notes customer feedback has 76 percent of respondents citing rising gas prices as a “top concern.” Given that Chrysler sales for April are down 23 percent from the same period last year, this campaign should help address corporate concerns, as well.
Customers who purchase an eligible new model from now till June 2, 2008 may elect to participate in the gas card program over accepting other available incentives – a decision to weigh carefully. Participants will use a special gas card for fuel purchases, with the transaction routed through their personal credit card, which will be charged $2.99 per gallon. There are a few limitations on the fuel type and quantity; offer valid with up to 87 octane regular unleaded fuel, E85 fuel, or diesel fuel only, depending upon purchased vehicle.
The following vehicles are not eligible for the Let’s Refuel America program: All SRT models, Dodge Viper, Dodge Challenger, Dodge Ram Chassis Cab, Chrysler Crossfire, Jeep Wrangler, and Dodge Sprinter.
Reaction to this offer has been swift, with Suzuki launching a dual-pronged promotion that combines zero percent financing for 60 months with free gasoline for the summer. The free gas comes in the form of a pre-paid Visa, and the total is based on a three-month consumption estimate. The XL7 SUV, for example, has a summer’s worth of petrol valued at $450.
"At the current price of $3.61 a gallon, the buyer of an average Chrysler vehicle would save $400 a year under Chrysler's deal. But a mere 3-mpg boost would yield the same savings over the 15,000 miles per year typically driven in the first three years of ownership,” said the Union of Concerned Scientists in a released statement. “Over the lifetime of a vehicle, such a fuel economy increase would save drivers more than $3,000. It wouldn't stop saving drivers money after just three years.”
Their advice boils down to: “…Buyers should go with the certainty of a fuel-efficient vehicle."
But as we reported in "Fueling for fun," most people are not ready to make a major sacrifice in their vehicle choice for fuel economy. Whatever incentive you choose on a new vehicle, remember that heavily incentivized models depreciate at a greater rate than those that transact closer to sticker price, and less-efficient vehicles now are taking an even greater depreciation hit. Discounted fuel may enable you to afford to drive the vehicle you prefer today, but it doesn't protect against even higher fuel prices in the years ahead and it doesn’t reduce national fuel consumption.
Bottom line is that shoppers should choose the best models that suit their needs, then let incentives play a role in deciding, rather than narrow the shopping list based on discounts. And do the math. The emotional appeal of gas-card incentives may not live up to their financial realities.
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