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Originally Posted by Katz6768
I have to disagree. It is not a "fine line". Actually I don't think is $2,500 I believe is closer to $1,000.
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I should've been clearer....You can take the fuel subsidy with GM, which depending on what, how, and how much you drive could result in refunds to the customer of $65 - a couple hundred dollars per month, or you can accept the $2,000 - 2,500 that Toyota, Ford and DCX are putting on the hoods of their SUVs. That's the $2,500 I was referring to. At the end of the day, the customer who buys any of those SUVs is going to spend the same amount of money on gas as they would have without the incentive. There are just different schemes as to how to subsidize the customer's overall out of pocket experience. On average, Toyota, Ford, and DCX are giving the customer MORE money to spend on gas. The customer just has the flexibility to spend the money on other things as well.
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Originally Posted by Katz6768
In Canada the offer is presented as buy any 2006 Pontiac and GM will pay part of your gas expenses upto 2,500 litres during the first year. This encourages people to use more gas during the first year so they don't loose their incentive. It also benefits GM by increasing the visits to the dealerships and repairs.
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In order to use more gas, people would have to drive more kilometers. I can't imagine that people intentionally driving more kilometers just to get "more money back". That's sorta like buying a $200 pair of shoes I don't need only because they are marked down to $75 and I can save $125. I only save $125 if I was already willing to spend $200 for that pair of shoes. If I don't need the sshoes, then I'm signing up to spend $75 that I didn't need to spend. Same thing here. People are going to drive the number of kilometers they typically drive, and their savings will be comensurate. The exception may be that maybe I drive to my annual vacation instead fo fly there, because now my gas purchase is subsidized.
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Originally Posted by Katz6768
The actual amount and the additional repairs and earlier need for service is irelevant. The incentive to use more gas is relevant.
Mr. Bush had finally acknowledged what the world knew all along, "Americans are addicted to Oil". That was a positive step, then GM says we will help you pay for your addiction if you buy our product.  |
I would interpret the message a little differently. It's sorta....
If you're gonna buy an SUV, buy the one that's most fuel efficient and we'll help you on your gas purchase. If you're going to walk away from your SUV and buy a mid-size sedan, buy the ones that are most fuel efficient in their class and we'll help ya with that gas purchase, too."
Peace,
Martin