Cheap Gas - American Auto Dealers Using Gas To Entice Buyers
With gasoline prices in the United States surging ahead at a breakneck pace, buyers who once embraced big oversized trucks and sport utility vehicles (SUVs) are turning away from gas-guzzlers, a move that's putting the squeeze on both automakers and auto dealers.
None have been hit harder than Chrysler, which relies on trucks and SUV's for 70 percent of its sales. They reported that sales were down by as much as 23 percent during the first four months of 2008. That may be why Chrysler was the first major automaker to offer what is clearly becoming the most popular incentive of the season-gasoline.
After that dismal 4-month downturn, the maker of Chrysler, Jeep and Dodge vehicles announced it would guarantee that their new customers would never pay more than $2.99 per gallon for gas for the next three years - no matter how high gas prices rise at the pumps.
In a creative marketing move, Chrysler has arranged for its customers to get a special credit card to be used for gas purchases. Customers using the card will be billed $2.99 per gallon to their charge account and Chrysler will pay the rest.
The guarantee, which is offered on 32 models, covers up to 12,000 miles annually for three years, and allows customers to buy gas anywhere they choose. The incentive also follows the vehicle if it is sold, allowing anyone that owns the car during the three-year period to take advantage of the gas incentive.
Suzuki, whose new car sales have been less affected, quickly followed suit by offering free gasoline to US buyers, but only for the summer of 2008.
Industry observers have stated they do not expect free or discount gasoline to take the place of the once most-favored incentive for new car buyers-cash rebates. As critics of the industry are quick to point out, gas giveaways do nothing to address the underlying problem. Gas prices will undoubtedly continue to rise and gas supplies will continue dwindle.
The only real, long-term solution to easing pain at the gas pump, most will agree, lies in developing vehicles that are more fuel-efficient as well as vehicles that use alternative fuel sources. In the words of one industry observer, "The days of driving on cheap fossil fuels are as dead as the dinosaur."
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Rising Cost Of Gas - Affecting Everything and Everyone
Now, unless you live in a cave that doesn't require oil heat, you may have noticed that gas prices are going up. You've probably also noticed that the price of food has gone up, although that maybe a good thing since because when you can't buy food anymore you can afford to fill up at the pump.
It seems obvious that increasing gas prices would increase food prices. After all, food has to be moved from place to place, and if that costs more, you can bet that it's going to be the consumer that ponies up the difference. The more gas prices go up, the more food goes up.
What you might not expect is that attempts to save some money at the gas pumps may be costing you at the dinner table. No, they haven't found a way to tap the raw power of a Twinkie. At least, not yet, although they're surely working on it. No, according to some, part of the rise in food prices is related to two of the most popular ways to save on gas prices.
Biodiesel and ethanol.
Biodiesel is a kind of vegetable oil that can be used in diesel vehicles. Biodiesel is made from a number of plants, but most of what we use is a made from soybeans. Ethanol is an alcohol that can be used in many cars, and is made from corn.
Right now, 15 percent of US corn production goes towards ethanol, and a somewhat smaller percentage of soybeans goes towards biodiesel. This creates an increased demand for the plants, which causes higher food prices.
You're probably thinking that you don't eat all that much corn or soybeans, unless you eat a lot of tofu tortillas, in which case this will directly affect you. The problem for the rest of us is that both of these are used as livestock feed.
As prices go up, so does the cost of feeding animals, which causes meats, dairy, and poultry to rise in prices. This is compounded by the fact that planting more corn causes fewer soybeans and other plants to be cultivated, which again causes the costs of food as a whole to rise.
What can you do about this? Well, you support your local farmers, who are less likely to start growing plants for this purpose if you buy from them. The place to look will be your local farmer's market.
An even better way is to increase the fuel efficiency of your car. By taking efforts to use less gas, you'll not only save money but you'll help lessen demand for gas and alternative fuels, which will help lessen both the cost of gas and food. By increasing your fuel efficiency you can save at the pump and the supermarket.
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