GM's Gas Sale: Sunny States To Get Fuel Price Break With $1.99 Guarantee
05-24-06, 04:29 AM
#1
G35x - RWD/AWD goodness
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GM's Gas Sale: Sunny States To Get Fuel Price Break With $1.99 Guarantee
DETROIT — General Motors is offering a deal that should be music to the ears of gas-price-shocked drivers.
The GM Fuel Price Protection Program gives GM car buyers a credit on any amount over $1.99 per gallon they pay to fill up their vehicles for the first full year. The deal is only being offered in Florida and California on select cars and trucks.
The program is good on selected 2006-'07 GM vehicles purchased or leased by residents of Florida or California between May 25 and July 5. The customer is required to enroll in GM's OnStar Vehicle Diagnostics service as well. The gas-price cap is good for one full year. Credits are calculated for the difference between $1.99 per gallon and the average price per gallon of premium fuel according to AAA statistics. The credits will be applied each month to a prepaid card issued to the consumer. The credits are good until December 31, 2007, and can be used the same as a MasterCard. There is no mileage limitation, GM said.
Analysts for Edmunds.com, parent of Inside Line, say that for a 2007 Chevy Tahoe driven 15,000 miles per year, the offer would be worth $1,158 at current gas prices.
GM has set up a Web site, available starting May 25, where consumers can go to calculate how much they might save by taking the automaker up on the deal.
What this means to you: A good way to get buyers' attention is to give them an unusual incentive, and this is certainly a timely one. Still, the one-year credit will not erase the harm a low-mpg SUV does to your wallet over the long term. And of course if you live outside Cali or Florida…well.
Source: http://www.edmunds.com/insideline/do...ticleId=115475
The GM Fuel Price Protection Program gives GM car buyers a credit on any amount over $1.99 per gallon they pay to fill up their vehicles for the first full year. The deal is only being offered in Florida and California on select cars and trucks.
The program is good on selected 2006-'07 GM vehicles purchased or leased by residents of Florida or California between May 25 and July 5. The customer is required to enroll in GM's OnStar Vehicle Diagnostics service as well. The gas-price cap is good for one full year. Credits are calculated for the difference between $1.99 per gallon and the average price per gallon of premium fuel according to AAA statistics. The credits will be applied each month to a prepaid card issued to the consumer. The credits are good until December 31, 2007, and can be used the same as a MasterCard. There is no mileage limitation, GM said.
Analysts for Edmunds.com, parent of Inside Line, say that for a 2007 Chevy Tahoe driven 15,000 miles per year, the offer would be worth $1,158 at current gas prices.
GM has set up a Web site, available starting May 25, where consumers can go to calculate how much they might save by taking the automaker up on the deal.
What this means to you: A good way to get buyers' attention is to give them an unusual incentive, and this is certainly a timely one. Still, the one-year credit will not erase the harm a low-mpg SUV does to your wallet over the long term. And of course if you live outside Cali or Florida…well.
Source: http://www.edmunds.com/insideline/do...ticleId=115475
05-24-06, 05:23 AM
#2
Lexus Fanatic
There is probably a reason that this program is offered only in Florida and California. These two states sell a lot of GM vehicles.......Buicks and some non-sporting Cadillacs are popular in Florida with the seniors, and of course EVERYTHING sells in California...the country's largest car market.
In addition, these two states generally have a warm climate which is conducive to good gas mileage ( though SoCal's congestion works against mileage ) which, of course, will lessen the amount of fuel each vehicle uses in relation to colder climes and will, of course, lessen the amount of money GM has to refund owners in gas costs.
Other Sun Belt states, of course, also have warm climates, and I would not be surprised to see the program extended to Texas, which sells a LOT of Chevy / GMC pickups and large SUV's.
In addition, these two states generally have a warm climate which is conducive to good gas mileage ( though SoCal's congestion works against mileage ) which, of course, will lessen the amount of fuel each vehicle uses in relation to colder climes and will, of course, lessen the amount of money GM has to refund owners in gas costs.
Other Sun Belt states, of course, also have warm climates, and I would not be surprised to see the program extended to Texas, which sells a LOT of Chevy / GMC pickups and large SUV's.
05-25-06, 08:49 AM
#3
GM offers gas cap for SUV buyers
http://abcnews.go.com/US/wireStory?i...C-RSSFeeds0312
This is actually an ingenious marketing plan. Instead of just giving you a massive discount up front, they will offer this thing instead and keep the selling price higher but still lower than the old price. SUVs/trucks being massive money makers having profit margins of 8k-10k easily. GM basically paying a customer the difference b/t their $/gallon and $1.99/gallon theres still no way they would lose as much money as if they took 10k off as an incentive. Add in the onstar subscription for 16.95/month for more money. All of this taking advantage of the gas drama thats happening now. Most people would not do the math to see that they will spend more in this new marketing strategy vs. a heavy incentive discount.
Basically the article says a tahoe driver driving 12k a year will get about a 104 dollar rebate each month. Before you could probably get 5k-8k incentives which equates to less than 50 months or 80 months of gas rebates. Most people dont even keep a vehicle that long. Also instead of 8k off instantly they will give you $104 a month with gas at $3.65, that $8000 can easily be used as investments and other things over that near 80 months instead of being blown away in the form of a dealer incentive. So many people will fall for this instead of doing the math
Absolutely ingenious
DETROIT May 23, 2006 (AP)— Aiming to capitalize on consumer angst about the high cost of gasoline, General Motors Corp. on Tuesday said it would cap pump prices at $1.99 for customers in California and Florida who buy certain vehicles by July 5.
One hitch to the promotion is that customers must also agree to enroll in the OnStar vehicle diagnostic service, which is free for the first year but after that will cost $16.95 a month. The other is that many of the eligible vehicles are serious gas guzzlers.
The offer is good for 2006 and 2007 model year vehicles. In California, eligible vehicles are the Chevrolet Tahoe and Suburban sport utility vehicles and Impala and Monte Carlo sedans; the GMC Yukon and Yukon XL SUVs; the Hummer H2 and H3 SUVs; the Cadillac SRX SUV; and the Pontiac Grand Prix and Buick LaCrosse sedans. In Florida, eligible vehicles are the Impala, Monte Carlo, Grand Prix and LaCrosse.
Customers must buy or lease an eligible vehicle between May 25 and July 5 and enroll in the OnStar diagnostic service, which automatically runs checks on the vehicle and sends e-mail notices to owners each month.
Each month for one year, GM will give drivers a credit on a prepaid card based on their estimated fuel usage. Fuel usage will be calculated by the miles they drive, as recorded by OnStar, and the vehicle's fuel economy rating.
GM will credit drivers the difference between the average price per gallon in their state and the $1.99 cap. The credits can be used through December 2007. Consumers wouldn't get any credits if gas prices fall below $1.99.
GM said a California resident who buys a 2007 Chevrolet Tahoe and drives 1,000 miles per month would get an estimated $103.75 monthly credit, based on the current average premium fuel price of $3.65 per gallon, GM said. A Florida resident who drives a 2006 Buick LaCrosse about 1,000 miles per month would get an estimated monthly credit of $60 based on the current premium fuel price of $3.19.
GM spokeswoman Deborah Silverman said GM picked California and Florida in part because the company wants to increase sales in those states. Silverman said GM will see how successful the program is before deciding whether to expand it to other states.
One hitch to the promotion is that customers must also agree to enroll in the OnStar vehicle diagnostic service, which is free for the first year but after that will cost $16.95 a month. The other is that many of the eligible vehicles are serious gas guzzlers.
The offer is good for 2006 and 2007 model year vehicles. In California, eligible vehicles are the Chevrolet Tahoe and Suburban sport utility vehicles and Impala and Monte Carlo sedans; the GMC Yukon and Yukon XL SUVs; the Hummer H2 and H3 SUVs; the Cadillac SRX SUV; and the Pontiac Grand Prix and Buick LaCrosse sedans. In Florida, eligible vehicles are the Impala, Monte Carlo, Grand Prix and LaCrosse.
Customers must buy or lease an eligible vehicle between May 25 and July 5 and enroll in the OnStar diagnostic service, which automatically runs checks on the vehicle and sends e-mail notices to owners each month.
Each month for one year, GM will give drivers a credit on a prepaid card based on their estimated fuel usage. Fuel usage will be calculated by the miles they drive, as recorded by OnStar, and the vehicle's fuel economy rating.
GM will credit drivers the difference between the average price per gallon in their state and the $1.99 cap. The credits can be used through December 2007. Consumers wouldn't get any credits if gas prices fall below $1.99.
GM said a California resident who buys a 2007 Chevrolet Tahoe and drives 1,000 miles per month would get an estimated $103.75 monthly credit, based on the current average premium fuel price of $3.65 per gallon, GM said. A Florida resident who drives a 2006 Buick LaCrosse about 1,000 miles per month would get an estimated monthly credit of $60 based on the current premium fuel price of $3.19.
GM spokeswoman Deborah Silverman said GM picked California and Florida in part because the company wants to increase sales in those states. Silverman said GM will see how successful the program is before deciding whether to expand it to other states.
Basically the article says a tahoe driver driving 12k a year will get about a 104 dollar rebate each month. Before you could probably get 5k-8k incentives which equates to less than 50 months or 80 months of gas rebates. Most people dont even keep a vehicle that long. Also instead of 8k off instantly they will give you $104 a month with gas at $3.65, that $8000 can easily be used as investments and other things over that near 80 months instead of being blown away in the form of a dealer incentive. So many people will fall for this instead of doing the math
Absolutely ingenious
Last edited by 4TehNguyen; 05-25-06 at 08:59 AM.
05-25-06, 10:06 AM
#4
Lexus Fanatic
05-25-06, 10:26 AM
#6
Speaks French in Russian
This is real cool. On the news maybe 2 days ago, I think Exxon/Mobil or BP will be introducing Pre-Paid gas cards very similar to this later in the year. Right now they are working on ways to make this work properly.
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