What do you think about GM's $2.99 gas guarantee?

Question

Is it a good idea or a bad idea, from a marketing, economic or environmental standpoint?

Would anyone purchase a GM vehicle based on this, or would you rather buy a more efficient vehicle?

Answer 1

this is news to me, I new chrysler was doing the same thing... guess I am out of the loop....

Answer 2

I think it's a sure sign the current price is a speculative spike.  

And the long term (next plateau) cost will settle around say... um... $3 a gallon ($90/barrel).

Or less.  

Just my opinion.

Answer 3

This ploy is only beneficial to a consumer who drives less than 10,000 miles in a calender year. If you are someone who drives significantly more than 12,000 miles annually, the alternative 0% financing offer (available at competing car lots) has far more long-term savings potential.

Answer 4

I thought it was DaimlerChrsyler.....but anyway, its only for the first 15,000 or so miles that you drive that year...after that youre on your own

Answer 5

It's a marketing gimmick.

If a car gets 15 miles per gallon, and gas is $4.50, then it costs 30 cents/mile to operate.

If gas is $2.99, then it's 20 cents/mile.

That's a savings of 10 cents a mile.

The find print of GM's offer is that they will only cover the first 12,000 miles a year.  Or $1,200.

You've seen the car ads: $3,000 Off MSRP.

This is the same thing, just repackaged to play off people's fears.

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I would rather buy a 4 year old car for $10,000, than pay $20,000 to get $1,200 back in rebates.

Answer 6

i would buy a more efficient vehicle because it sounds like they would just work the price of money you are saving on gas into the price of the vehicle.

Answer 7

That is stupid. You would be better to take the rebate then the $2.99 offer.

Answer 8

I think it's dumb.

Let's say you drive the maximum 12,000 miles over which this guarantee applies, and gas averages $4.50 per gallon over that period.  Cryslers aren't exactly fuel efficient cars, so let's say you buy a 20 mpg car.

Over those 12,000 miles, you use 600 gallons of gas.  At $3/gallon, you pay $1800.  Over the 3 years of the guarantee, your fuel cost is $5400.  After that, you're paying the normal price of gas for the rest of the lifetime of the car.  Let's say it's another 100,000 miles, and conservatively we'll keep the price of gas at $4.50/gallon.  The remaining fuel cost for the car is then $22,500, for a total lifetime fuel cost of $27,900.

Now let's say instead of buying the 20 mpg Crysler, you bought a 30 mpg car elsewhere - say a Ford Escape hybrid, for example.  You drive the same 136,000 miles with gas at $4.50/gallon.  Your lifetime fuel cost in that case is $20,400.

You would have saved $7,500 by buying the more fuel efficient car.  You would have also had a much smaller carbon footprint.

The gas guarantee is just a stupid gimmick, but fortunately, few people are falling for it.

http://greenhome.huddler.com/forum/threa...

Answer 9

Ok you buy a gas guzzler and get cheap gas through this offer....

and then what's next? You have an inefficient vehicle which you will not be able to sell for a good price... think about it.