Free gas with your new car? Think again.
Filed under: Ripoffs and Scams, Shopping, Transportation
Anytime you go car shopping you get slapped in the face with dealer incentives swathed in bright colors and exclamation points. While many people filter out similarly structured sales pitches online, for some reason car dealers are given a pass on the use of ALL CAPS and big promises. Take for example the $500 in free gas which many dealerships are quick to offer. This "generous" offer is yet another way to convince the buyer that they are putting one over on the dealer and getting a better deal. One of the providers of the gas rebate service is FreebieGas.com, which still proclaims an all time high gas price of $2.50 per gallon. Like all dealer incentives there is a catch, and in all my years of dealing with rebates I don't think I have heard one with this many hoops to jump through.What the dealer doesn't tell you about the gas rebate you just used to rationalize purchasing a more expensive car, is that it will cost you money just to sign up for the rebate program. From here the process only gets shadier and trickier, you must buy $100 in gas each month to receive a $25 gas card AND you have to make all these purchases at the same gas station. After you spend your monthly quota for gas you better head to the post office and overnight your receipts as they need to be received before the first day of the next month in order to count for redemption. Finally 2 grand and 20 months later -- if you are lucky you'll have recouped the $500 in gas incentives. In case this still sounds like a good deal or you feel like you can beat the system with your moleskin notebook and in-car stapler, the $500 in gas you receive still needs to be reported as income on your state and federal taxes. I like to consider myself a frugal shopper but a gas rebate process like this is too involved even for my stingy ways.
Heading out to purchase a used car soon? Be sure to read, Tom Barlow's latest post to learn how to make a car dealer your agent as you search for your dream car.
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Reader Comments (Page 1 of 1)
4-12-2008 @ 10:51AM
Jackie said...
I realize I am off post here, please forgive me.
This is important to us all. A group of us are attempting to organize a PRODUCT boycott. In the past we did one day of not buying gas...didn't work.
Now from May 1 to July 1 we would like all to join us in boycotting EXXON/MOBILE gasoline.
July1 we will move on to HESS if the companies don't see we mean business.
Prices should come down by hitting one brand at a time. At least by announcing Hess will be next and you can bet they will try for our business while we are boycotting EXXON/MOBILE.
A 2 month nationwide boycott should hurt them some, hopefully it will force prices down to a more affordable level....will I know hurt my dividends that supplement my retirement income, but in the long run lower gasoline prices will help on a daily basis.
Thank you for your time and I do hope you join us
Reply
5-17-2008 @ 3:23PM
Matt said...
There is some misleading information in your attack. Yes, there is a $5 registration and processing fee, but that is returned in the final month in the form of a gift card to the brand of gas the customer selects.
Secondly, they don't have to keep going to the same exact gas station, just the same brand - and most people have no problem finding the same gas brand near home and work (ie. Shell, Chevron, Exxon, et.).
Third, you make it sound like it is hard to buy $100 in gas per month when most people do this in two to three fillups.
Oh - And getting those receipts in by the end of the month? Well, most people will have their $100 in gas bought by the second week.
Finally, you state, "Finally 2 grand and 20 months later -- if you are lucky you'll have recouped the $500 in gas incentives." Yes, it is 2 grand after 20 months but it is 2 grand you would be spending anyway. You make it sound like Freebiegas.com is making 2 grand off each person.
I have never had a problem with their certificates and I use them with my online business. The registration process is easy and online. Why all the heat?
Reply
5-17-2008 @ 3:34PM
Josh Smith said...
Matt, the problem lies with car dealers who pitch it as if you are getting truly free gas like a gas card.
Just like rebates the freebiegas.com offers are set up in a way to maximize the number of people who don't fulfill the rebate.
Most consumers won't have the fortitude to follow through.
I'll concede that the money would likely be spent anyway but that doesn't make the way most companies pitch the right.
I've also signed loan agreements with less legalese than feebiegas' terms of service.
I'm glad it works for you and your customers but for most people the rebate won't be fulfilled.
Reply
7-17-2008 @ 9:55AM
Doug said...
You seem to be one that loves to find the negatives. THe gas offer is valid and clearly explained and the brochure: there are no hidden requirements and it works EXACTLY as stated.
Everyone spends $100/mo on gas--at $4.30 gallon is only 23.3 gallons @ 15 mpg = 345 miles per month or 80 miles per aver week!! You will get your $25 per month and it helps.
Stop being half empty and try half full-- your dispostion might improve.
A former car dealer
Reply
7-17-2008 @ 9:59AM
Josh Smith said...
Well my coffeecup is empty this morning!
I have no problem with the offer if the car dealers who are pitching it tell the consumer straight up about all of the catches. But then how would they convince them to spend the extra $500 to get a warranty or an underbody anti-rust coating?