Unfortunately, in this case Ralph Cramden is talking about oil prices going to the moon rather than Alice. Oil is now at $126 a barrel today, it’s highest so far this millennium. And, when I filled up my tank this morning, I was excited to find some idiot that hadn’t raised prices up to the moon and I filled up with the silver-plated octane level at $3.43 a gallon. According to Nashville Gas Prices, it’s now officially highest in Brentwood and Franklin and lowest in Hendersonville. Oddly enough, those are probably the more financially better-off suburbs and I have no idea why the Hendersonville folks are getting off so cheap. Whatever.
Even Toyota is having a hard time and their cars get better mileage. (A friend here at work just bought a Yaris. She’s been happy as a clam over her 38 mpg.) They’re forecasting a 27% drop in this year’s profits and a 28% drop for the current quarter.
Chrysler has offered to subsidize the cost of your gas, covering everything you have to pay over $2.99 a gallon for the next three years in an efort to sell their cars. (Gets out Excel to do some calculatin’) If you drive a PT Cruiser (We had one. It is comfortable to ride in, based on a 4 cylinder engine, but gets 19 mpg. Which isn’t too bad for a Chrysler, but in general sucks.) and drive it about 12,000 miles a year, you’ll do 36,000 miles in that three years. If gas goes up a nickel a month every month in that same three years (topping out at $5.18 a gallon for regular — yow!), you will pay $8,200 for gasoline. Chrysler will pay you back the difference between what you’ve paid and the $2.99 price, which amounts to around $2,500 in three years - but wait - there’s a catch in their deal. They agree to pay you the difference based on the EPA mileage rating, which means to get the full value of your rebate, which will be more like $1,300, you’ll have to drive no faster than 45, never roll down the windows and never use air conditioning. Compare that savings with what you lose in depreciation the minute you buy a Chrysler product, and you’re still a loser. Thank you for playing, Mr. Chrysler.