Is Chrysler's Gas Price Cap Worth It?

You have all probably seen by now the ads and marketing around Chrysler's newest promotion: Buy a car, and get a guaranteed maximum gas price of $2.99 for the next three years. 

 

When you first hear it, it sounds pretty appealing.  But is it really a good deal?  As in all things, that depends.

 

If you are looking to buy a car, you could get a Chrysler 300.  For the sake of argument, let's say you want the power and get the Hemi V-8.  You would get a combined 17 miles per gallon according to Chrysler.  The Chrysler program limits you to 12,000 miles per year, so you could purchase 2118 gallons at $2.99 under the deal.

 

Assuming that gas averages $4.00 per gallon over the three years, you would have saved $2139 dollars.  Because the savings is spread over three years, you also need to determine what the savings is worth to you today.  Assuming a 5% discount rate per year, the value of the savings is approximately $1990.

 

So, to decide if you are getting a good deal, you would first have to decide if the $1990 discount means that you are getting a good deal on the car.  And that, my friends, is an entirely personal decision.

 

So, what do you think??