AUTOMOTIVE
Chrysler's fuel incentive aims to get 'people inside dealerships'
> Gas card incentive looking better
> Are these deals enticing to you?
Friday, July 18, 2008
TROTWOOD — Mary Kay Zappia has sold cars and trucks for more than four decades. Today, more than two years after the death of her husband, Mel, she remains at the Salem Chrysler Jeep dealership's helm.
In 41 years, Zappia has seen her share of tough times. In terms of uncertainty, today may not be the worst — she ranks the late 1970s, when Lee Iacocca stepped up to lead Chrysler, as the shakiest era — but she admits this market is not for the fainthearted. With tight credit and soaring gas prices, sales so far this year are probably down 10 percent compared to last year at this point, she said recently.
That's one reason Zappia is keen on Chrysler's $2.99-a-gallon gas program. In lieu of cash back or lower interest rates, customers can sign up for a card that keeps gas at $2.99 a gallon for three years, up to a maximum number of gallons per year. She says the offer is bringing potential customers through her doors.
"I think this is the strongest print (advertising) program," Zappia said.
If it gets people inside dealerships, that's the point, said Curtrise Garner, a Chrysler spokeswoman. "That was the plan."
In an online survey earlier this year, Chrysler found that 76 percent of respondents were concerned about gas prices, Garner said. The $2.99 program, she said "is only one solution to allay economic fears."
Stuart Schorr, another Chrysler spokesman, said the offer was shaped with the expectation that only a certain number of customers would choose it. Discounted financing, cash back and the gas program are all "somewhat equal" in value, he said.
"It's not the majority," Schorr said of customers opting for the card. "The majority of people still want that down payment money."
Perhaps surprisingly, the company is finding that those in the market for a fuel-efficient vehicle are most likely to opt for the card, Schorr said.
And while Schorr said Chrysler expected rising gas prices when it crafted the program, he added that there are no plans to extend the offer past July 31. The automaker purchased fuel price futures contracts before unveiling the incentive.
Bill Golling, owner of Golling's Arena Dodge on Shiloh Springs Road, said the program has "brought a tremendous amount of traffic into the showroom."
"Some people just want the peace of mind of, you know, 'OK, I know what my prices will be,' " said Golling, who is based in the Detroit area and visits his Dayton dealership at least once a week.
Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.
Comments
By someone
July 18, 2008 2:42 PM | Link to this
i think it’s dumb. yeah, you get the $2.99 gas for so many miles or whatever, but you’re now stuck in a 3-5 year car payment. so you’re not really saving any money here.
By Steve
July 18, 2008 2:36 PM | Link to this
It is true that you give up all the rebates if you take the gas offer. You may not be getting a betetr deal. In response to By Me. ACTUALLY japanese vehicles DO NOT have better warranties. GM has 5 year and 100,000 mile warranty which is the best in the business. The Chevrolet Malibu just won the JD Power award for best initial quality and beat ALL other vehicles. ONLY about 40% of japanese vehicles are built in the US and most of the engineering is not done here.
By No Way
July 18, 2008 11:43 AM | Link to this
I’ve given up trying to deal with these new car dealer pirates. I want to buy a new car this month and went to several dealers and tried to trade in a 2-yr old, 4 cyl car with only 20K miles in near perfect condition for a new car and all the dealers only wanted to give me was $11K for a trade when they have a few cars identical to mine on the used car lot selling for $17-18K. Isn’t $2K good enough profit to make on a used car instead? No thanks if your cars depreciate that much in 2 years!
By Roscoe
July 18, 2008 11:22 AM | Link to this
What they don’t say is that you must pay MSRP and give up all rebates and\or Financing Incentives to get these gas deals. On the vehicle I just bought it would have cost over $1,300 dollars more to take the gas deal than the rebate and my own negotiating powers price…………….
By Me
July 18, 2008 10:23 AM | Link to this
BUYING AMERICAN doesn’t really matter anymore. Japanese cars hold there value and last longer and have better warranties and the majority of these “japanese” cars are still built here in the United States.
By Jim from Ohio
July 18, 2008 9:30 AM | Link to this
I too have owned Chrysler products all of my life. What transmission trouble? I would like to see them go back to the Chrysler torqueflight transmission. It was virtually indestructable, (and still is - in my 66 Plymouth). I now have a 300 that is over 3 years old, and a Hemi Ram that is 1.5 years old, and NEITHER have been back to the dealer. My sons own Hemi Rams, Jeep Grand Cherokees, Neons, etc. and they have not had any trouble with their cars (or transmissions) Buy AMERICAN!
By April
July 18, 2008 9:11 AM | Link to this
Not really enticing…$3k cash back is overall worth more (and I would also get a GM discount if I bought GM). It’s a lure that only the people who didn’t learn anything in math class would bite. You have to look at fuel economy, OUR economy (buy American people! That includes Ford as well as GM!), and overall performance and quality rather than oogling a shiny gas card.
By LoveMyMopar
July 18, 2008 9:09 AM | Link to this
Of course some are going to be skeptical; like Hank here. What American car company isn’t in trouble Hank? I’ve driven Chryslers and Dodges my whole life and never had a problem. The one and only Chevy I had was a junker so I’m not a fan of those. At least Chrysler is trying to help consumers who want to purchase their vehicles. They need to build smaller more efficent cars, like the Neon. The American automakers are getting hammered by the Japanese-but I’ll bet they bounce back.
By Hank
July 18, 2008 7:13 AM | Link to this
No they are not. Chrysler is a privately held company that is loaded with debt. They have borrored billions that they can’t repay and are probably headed toward bankruptcy in 2009. Because they are a private company the gas cards are going to be useless. They have been asked that questions publically are have refused to answer. The lifetime warranty will not be honored as well. Bad news for those who own Chryslers. Ask anyone who has owned a Chrysler about Chrysler’s transmissions.