If you have been reading these blogs you’ve noticed that people are indeed changing their routine when it comes to their cars. Some are buying more fuel efficient vehicles. Some are changing their driving routine by combining several small trips into one trip. Many are now buying lesser grade gasoline because it is cheaper than the grade of gas they were buying in the past. And many people who had been relying on their vehicle to get around are now turning to public transportation.
Then there's Chrysler and Suzuki.
Chrysler’s program, called “Let’s Refuel America”, offers a card that offers Chrysler buyers gasoline at $2.99 for three years. And Suzuki has a similar program. Many think the incentive is a great idea. But many others wonder.
The incentive is proving most ideal for people who buy cars that don’t have the greatest fuel efficiency. And that means that models that perhaps should be closed out due to the oil situation are actually continuing to be sold. That doesn’t help things in the long run. Many pundits say that programs like this actually assist in raising gas prices. Speaking like an economics professor, getting people to buy more gas even if it’s with a Chrysler gas card increases demand and raises prices.
Our take? We Americans are into immediate gratification -- cheaper gas -- without considering the long term consequences -- more expensive gas.