Friday, July 23, 2010

Chrysler is offering a $2.99 guaranteed to sell it's vehicles?

Question 1
Chrysler is offering a $2.99 guaranteed to sell it's vehicles?...  If you buy a Chrysler, Dodge or Jeep, you will be given a special card that will guarantee $2.99 per gallon for the next three years (up to a 12,000 miles per year). Would you be willing to one purchase one of their products if you knew the price per gallon you pay to fuel your vehicle would never exceed $2.99? Do you believe that they will be able to sustain this program for the next three years without bankrupting the company?

1)   This is not the first time they have done this. They had the same basic offer about 2 years ago when gas prices were climbing over $4 per gallon. At the time, I thought about the possibility of making a purchase but, for me, the numbers just didn't add up. (gas price savings vs. monthly payment) The biggest problem with doing this right now is that you can buy gas for that price or maybe even lower anyway, so it is really not worth even taking it into consideration at this point in time.

As far as sustainability, I think the profit they make on the car will more that make up for the possible extra money they will be spending. - Jim

2)   My family has owned Chrysler products going back to 1960...I bought my last 2 in 1994.

This is an appeal to American consumers who cannot do arithmetic. It is as insulting to my intelligence as Chevrolet selling cars based on false notions of American patriotism.

OK. I’m getting along in years and am not as quick with math as I used to be. So, please check my work.

Let’s takes 2 hypothetical purchases:
You buy a Toyota Prius for about $23,000; Consumer Reports (CR) says it gets 44mpg (I get 54 on long road trips on mine); CR rates its reliability as a 5 out of 5. I buy a Chrysler Town & Country for a $23,000-$35,000; CR says it gets 17mpg and doesn’t rate its reliability, although used models rate poorly along several factors like brakes, suspension, body hardware, etc. You drive your Prius for 3 years at 12,000 mi/yr = 36,000 mi. I do the same with my Chrysler.
At 44mpg, you need to buy 818.2 gals of 87 octane gasoline. Let’s assume the average price for gas over the next 3 years is $4.99. That is going to cost you: $4,083. At 17mpg, I need to buy 2,117.6 gals of 87 octane gasoline. I get a guaranteed $2.99/gal price from Chrysler. This means my net cost will be $6,332. (My gross cost before rebates would be over $10,000.) So, let’s see where we come out...
You save $2,249 on gasoline over my subsidized Chrysler prices for the first 3 years; and, that assumes a conservative $4.99/gal average price for the period. I will be in big trouble come year 4 You get a highly reliable car which will last you many years to come (my 2.5 yr old Prius hasn’t needed a single thing, except for oil and filter changes). I get a car much more likely to require repairs on brakes, suspension, climate control, etc. A $1,000 bill for a car repair is not an unusual one. Two of these would double my penalty for buying the Chrysler. You drive a sensible vehicle which buys you time until a clever company comes out with a truly attractive vehicle running on alternative fuel. I further increase our dependency on imported oil. -------------------------------------------------------------------------------------

I don't think this program will last the 3 years. If the company doesn't go under, it will have been acquired by someone else. - duffey

3)   The first thing I noticed is that the Let’s Refuel America program must be selected in lieu of other incentives. Determining if the deal is worth it to you means that you’ll have to compare the value of the program to the other deals you have to give up to get it. Second, a yearly allotment of 12,000 miles limits the amount that you can truly save. Converting miles to gallons allowed will use the EPA combined fuel estimate for the vehicle in question. Third, the program charges the gas to your credit card after the transaction is made. If you would normally pay for gas with cash or don’t pay off your credit card in full each month, the interest on the gas purchases (even at $2.99 a gallon) can quickly make the price more expensive for you. Lastly, though I don’t expect gas prices to come down over the next three years, if prices fall, the value of the program decreases. If they had made the price equal to 25% below the average price in the US, or something along those lines, that would have offered protection against potentially lower prices in the future.

Looking at a typical Chrysler, the Sebring, gives you an idea of the potential savings. With its 21 city/30 highway mpg, 12,000 miles per year will require about 471 gallons of gas. Assuming that gas averages $4.50 over the next three years (Which is the same as $3.50 this year, $4.50 next year, and $5.50 the year after that), the program will save you $2,133.63 over the next three years. It’s not uncommon for other dealer incentives to be more than that. Saving more on the price of the car up front is much better than saving less through low priced gas. If you take out a loan on the car, the up-front sa - confugio

4)   So, they could make money if that is all people are worried about. Now, if they sell below sticker, and give that, then they need to hire smarter business people. - Rowena

5)   Car dealers are masters of rigging the numbers to make it look like you are getting something when you aren't (like "Cash Back" or "Invoice Pricing"). The only thing you can be absolutely sure of is that Chrysler has run this thing through marketing and financial programs on a computer as big as your house and they wouldn't be doing it if it wasn't going to increase profits. Nobody gives away something for nothing and you can double that in spades for automobile manufacturers and dealers. Whatever they are giving you here they have buried in the deal somewhere else. This is a marketing gimmick to play on the suckers who are looking for a freebie to help with high gas prices. Don't be one of 'em. - drakkar


Question 2
what is the difference between a plymouth roadrunner and a GTX?...  

1)   nothing much one sez RR the other GTX the GTX was a more expensive upgrade while RR was a striped out racer - pedro7of9

2)   The original versions were quite different. The GTX came out in 1966 and the Road runner in 1968. The RR was a "bare bones" coupe with rubber floor mats. The GTX came a lot more "plush" with more insulation and carpeting along with more brightwork trim and such. - Otto

3)   the gtx was a much more lush model. the rr was kind of plain jane. - badbill1941

4)   The name? - Andy


Question 3
What kind of gas does a 1998 Chrysler Cirrus require?...  I bought this car, but it did not come with an owner's manual. Anyone out there with this car know what it says in the manual to use? Regular or Premium?

1)   regular 87 - Skag Baron™

2)   regular unleaded - richard r

3)   regular unleaded will be fine for your cirrus. - hindmost

4)   they dont require any kind but most all cars run better on higher octane fuel - Twister


Question 4
can you switch the a/c out of a ford to a chrysler van?...  Have a 95 ford taurus with ice cold a/c, the car is finally crapping out. Also have a 98 chrysler mini van with hot a/c. Is there any way to switch them out?

1)   No - C-Tech

2)   NO - chester

3)   Oh honey, that would be a hell of a lot of work. The wiring the sensors and then nothing would fit. No it is not feasible. You know your a redneck if. - Donny


Question 5
my a/c compressor wont come on unless i use a jumper wire its a concord lxi can you help?...  

1)   you could be low on freon, or you may have a bad fuse or switch. - badbill1941

2)   If the compressor will run by using a jumper wire , then the low pressure switch senses the low pressure thus not letting the compressor kick in.. Look for an oil stain on the "H" valve or on the condenser. This will indicate a freon leak. If not there then sniff inside the car near the front passenger floor. If it smells like ammonia it is the evaporate leaking. - Donny

3)   Take it to a shop, you cannot fix it at home. They will tell you all kinds of crap here, but it will wind up working poorly or breaking something else. A/C is not DIY The freon levels with R-134a need to be exact and mositure is critical and oil in the system is critical. You can't get that done at home.

ASE Cert Auto Tech since 1978 - sci


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