Buy or Lease a New Jeep and Get (relatively) Cheap Gas

[TerryMason]

Chrysler LLC announced yesterday an offer that gives people who purchase or lease a new Chrysler vehicle a special charge card that only charges the customer $2.99 per gallon of gas - Chrysler will pick up the rest of the tab.

Chrysler also announced 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 Wednesday through June 2. The offer is based on 12,000 miles of driving per year at the vehicle's rated fuel economy.

Customers will get a card for buying gas that is linked to their own charge account, Chrysler said. The customer will be billed $2.99 a gallon, and Chrysler will pay the rest.

Actual savings depend on what happens to gas prices over the next three years, but based on the $3.61 a gallon average price reported Monday by AAA, someone buying a 2008 Chrysler PT Cruiser, which gets an estimated 21 miles per gallon in city driving, would save $355 a year.

Thanks to Jeep News Now for the article

[TerryMason]

I wonder if this is going to backfire on Chrysler. What happens if gas hits $5 a gallon, or $10? This could end up costing them alot of money.

[redrooster]

I'm sure there is plenty of fine print.
They are definitely clawing for business these days...lifetime powertrain warranty and now this. Interesting.

[LauraBoston]

This only applys to new or unused vehicles, and new Jeep Wranglers are excluded as well as SRT, Viper, Sprinter and Fleet vehicles and some others that I forget off the top of my head. But, if you buy diesel you get the $2.99 price lock as well.

I don't look at to as "clawing" more as they are looking to be the leader in the race. When GM came out with Employee Pricing the next month EVERY car manufacture came out with it.

Chrysler came out with a Limited Lifetime Warranty, there is no better warranty, this even covers axle bearing and such. Now they intorduce $2.99/gal price lock, and there is no way ANY manufacture can come close to this. This took Chrysler 7 weeks to establish.

Chrysler also says only to 20% of their costumers is this going to be a reasonable offer to them. The others will take the full rebates.

[TerryMason]

Chrysler seems to be making money on this offer, as they've extended it until July 7th


PRESS RELEASE

CHRYSLER LLC RESPONDS TO CUSTOMER AND DEALER FEEDBACK, EXTENDS $2.99 GAS GUARANTEE FOR 2ND MONTH

• Chrysler, Jeep® and Dodge dealers' feedback drives mid-month extension of new incentive program
• Consumer interest high for the Let's Refuel America program as average gas price in U.S. rises to $3.80
• Alaska, California, Connecticut and Hawaii now average over $4 a gallon

Auburn Hills, Mich., May 19, 2008 -
Chrysler LLC today extended to July 7 the Let's Refuel America $2.99 gas guarantee program, which offers customers the opportunity to lock in their gasoline purchases at $2.99 a gallon for three years, up to 36,000 miles. The program was launched on May 7 for the month of May only, but extended for a second month in response to dealer and customer demand for additional time.

Even before the full impact of the national and local advertising has been realized, the Let's Refuel America program already has created a high level of word-of-mouth consumer awareness, with increased traffic coming into Chrysler's 3,511 dealerships and onto its Web sites. After one week, Chrysler's Web site activity is up 25 percent versus the previous week, with internet leads increasing by 34 percent.

"Customers and dealers across America have told us they like the gas guarantee incentive option, so we are providing a second month for shoppers to take advantage of it," said Jim Press, Chrysler LLC Vice-Chairman and President. "Let's Refuel America, the Lifetime Powertrain Warranty and the New Day Packages are all examples of our commitment to deliver more value and peace-of-mind to our customers."

Let's Refuel America Program Details
Through July 7, Let's Refuel America is available on virtually all Chrysler, Jeep and Dodge compact vehicles, SUVs, sedans, minivans, and pickup trucks, including its five vehicles that get 28 mpg on the highway for an MSRP under $20,000. Not included in the program are the company's high- performance vehicles such as the Dodge Viper, Dodge Challenger, Chrysler Crossfire, and the entire SRT® lineup as well as the Dodge Sprinter, Dodge Ram Chassis Cab and Jeep Wrangler.

Customers who purchase or lease an eligible Chrysler, Jeep or Dodge vehicle have a choice of one of three incentive packages of similar value: Cash back; 0 percent financing (for eligible customers); or the gas guarantee program, which on some vehicles also includes up to $3,000 additional cash back. Only the Let's Refuel America incentive grows in value if gas prices rise. Upon purchase, customers can evaluate the three options with their dealer representative to determine which incentive best meets their personal financial preference and tolerance for risk related to rising gas prices.

"What our customers and dealers like best about this program is the flexibility of three incentive options, each with a unique benefit," Press said. "Some customers need cash back immediately for a down payment; others don't like paying high interest rates; and many are tired of worrying about rising gas prices and want to be protected. We are pleased to offer every customer a choice of what's best for their individual situation."

Customers who select the Let's Refuel America $2.99 gas guarantee program will receive a gas card (linked back to their own Visa or MasterCard) that is valid at 97 percent of gas stations in the United States. Purchases at the gas stations will be for the full price being charged that day, but only $2.99 per gallon will be billed back to the customers' credit card. Chrysler picks up the rest, regardless of how high gas prices rise.

Initial Results
After the May 7 launch of Let's Refuel America and before the full impact of the advertising has been realized, the highest take rates have been on the new Dodge Journey crossover, Dodge Caliber, Dodge Avenger and Chrysler Sebring sedan.

"The most incremental incentives in this gas program are on the company's most fuel-efficient vehicles, which typically do not have this level of incentive available," Press said. "Our customers who buy smaller vehicles put great value on being protected against rising gas prices."

From a geographical perspective, the highest take rates have been in the states of California, Connecticut, Indiana, Ohio, and Washington. These five states are among the 12 highest fuel price states in the country.

"We are pleased that Let's Refuel America seems to resonate with many Americans during this time of gas price volatility," Press said.

From a marketing perspective, Let's Refuel America is supported by national television spots, Dodge Journey ads tagged with the program information and national print, radio and Internet presence.

[southtj]

What is the down side of this deal? Is there one?

[mud4feet]

Originally Posted by southtj

What is the down side of this deal? Is there one?

The only downside I see is you gotta buy one of those heinous '08 Wranglers!!!! (still better than buyin' anything else, IMHO!!!!!)