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  3. GM to subsidise some US petrol purchases

GM to subsidise some US petrol purchases

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    Ray Kinsella
    wrote on last edited by
    #1

    From the Irish Times/Reuters General Motors Corporation has said it would subsidise gasoline purchases in Florida and California to boost sales in those key markets GM said it would cap the price of gas at $1.99 a gallon for new buyers of some of its 2006 and 2007 full-size sport utilities and mid-size cars in those states. The gasoline credit would be based on a consumer's estimated monthly fuel usage. Consumers would be credited for the difference between the average price per gallon of premium fuel and the $1.99 price, adjusted for the miles they drive,. The credit would be applied monthly to a pre-paid credit card and would be valid until the end of 2007, with no limits on mileage. For example, GM said a California resident who buys a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would see an estimated $103.75 monthly credit. A Floridian who buys a 2006 Buick LaCrosse and drives the same distance would get a monthly credit of about $60, GM said. The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars. ------------------------------------------------------------------------------------- Ok some simple calculations, 1 Gallon US = 3.7854118 Litres They are capping petrol at $1.99, thats $0.53 a Litre which is €0.40 a Litre. The cheapest petrol available in Ireland at the moment is €1.12 Litre. This kind of explains why 6 Litre SUV's are so popular in the states :-D Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

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    • R Ray Kinsella

      From the Irish Times/Reuters General Motors Corporation has said it would subsidise gasoline purchases in Florida and California to boost sales in those key markets GM said it would cap the price of gas at $1.99 a gallon for new buyers of some of its 2006 and 2007 full-size sport utilities and mid-size cars in those states. The gasoline credit would be based on a consumer's estimated monthly fuel usage. Consumers would be credited for the difference between the average price per gallon of premium fuel and the $1.99 price, adjusted for the miles they drive,. The credit would be applied monthly to a pre-paid credit card and would be valid until the end of 2007, with no limits on mileage. For example, GM said a California resident who buys a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would see an estimated $103.75 monthly credit. A Floridian who buys a 2006 Buick LaCrosse and drives the same distance would get a monthly credit of about $60, GM said. The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars. ------------------------------------------------------------------------------------- Ok some simple calculations, 1 Gallon US = 3.7854118 Litres They are capping petrol at $1.99, thats $0.53 a Litre which is €0.40 a Litre. The cheapest petrol available in Ireland at the moment is €1.12 Litre. This kind of explains why 6 Litre SUV's are so popular in the states :-D Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

      C Offline
      C Offline
      Christian Graus
      wrote on last edited by
      #2

      When I was first in the US, there was lots in the paper about gas prices putting people in debt. I worked it out ( that is gallons -> litres ) and while I recognise that it's all relative, and any rise in prices locally means people spending more in that area, I sure wished I had their problems. I went though $80 a week when I was commuting. I still easily spend $20 in a day if I have to do some short trips in the ute with weight on. Christian Graus - Microsoft MVP - C++

      L 1 Reply Last reply
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      • R Ray Kinsella

        From the Irish Times/Reuters General Motors Corporation has said it would subsidise gasoline purchases in Florida and California to boost sales in those key markets GM said it would cap the price of gas at $1.99 a gallon for new buyers of some of its 2006 and 2007 full-size sport utilities and mid-size cars in those states. The gasoline credit would be based on a consumer's estimated monthly fuel usage. Consumers would be credited for the difference between the average price per gallon of premium fuel and the $1.99 price, adjusted for the miles they drive,. The credit would be applied monthly to a pre-paid credit card and would be valid until the end of 2007, with no limits on mileage. For example, GM said a California resident who buys a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would see an estimated $103.75 monthly credit. A Floridian who buys a 2006 Buick LaCrosse and drives the same distance would get a monthly credit of about $60, GM said. The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars. ------------------------------------------------------------------------------------- Ok some simple calculations, 1 Gallon US = 3.7854118 Litres They are capping petrol at $1.99, thats $0.53 a Litre which is €0.40 a Litre. The cheapest petrol available in Ireland at the moment is €1.12 Litre. This kind of explains why 6 Litre SUV's are so popular in the states :-D Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

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        NormDroid
        wrote on last edited by
        #3

        Yeah another good way to our climate. Never send a human to do a machine's job Agent Smith

        1 Reply Last reply
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        • R Ray Kinsella

          From the Irish Times/Reuters General Motors Corporation has said it would subsidise gasoline purchases in Florida and California to boost sales in those key markets GM said it would cap the price of gas at $1.99 a gallon for new buyers of some of its 2006 and 2007 full-size sport utilities and mid-size cars in those states. The gasoline credit would be based on a consumer's estimated monthly fuel usage. Consumers would be credited for the difference between the average price per gallon of premium fuel and the $1.99 price, adjusted for the miles they drive,. The credit would be applied monthly to a pre-paid credit card and would be valid until the end of 2007, with no limits on mileage. For example, GM said a California resident who buys a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would see an estimated $103.75 monthly credit. A Floridian who buys a 2006 Buick LaCrosse and drives the same distance would get a monthly credit of about $60, GM said. The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars. ------------------------------------------------------------------------------------- Ok some simple calculations, 1 Gallon US = 3.7854118 Litres They are capping petrol at $1.99, thats $0.53 a Litre which is €0.40 a Litre. The cheapest petrol available in Ireland at the moment is €1.12 Litre. This kind of explains why 6 Litre SUV's are so popular in the states :-D Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

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          E Offline
          El Corazon
          wrote on last edited by
          #4

          Ray Kinsella wrote:

          The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars.

          Individual sales groups of Ford, Toyota and I think one other already started offering free fuel for the summer (no different than cash rebates), on all purchases of SUV's and Trucks below 20mpg. They also started removing the stickers with the published numbers for estimated fuel economy and putting "see sales associate" to encourage the sale before they find out the fuel economy. There have even been applications to the government for reimbursement due to lost marketability of SUV's and Trucks due to high gas prices based on years prior to the gas rise. As well as demands that higher import duties be applied to foreign cars with better fuel economy. That's just all normal day to day stuff in the USA. These complaints have all been going on long before the rise in gas prices, it is just reported now. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)

          R 1 Reply Last reply
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          • R Ray Kinsella

            From the Irish Times/Reuters General Motors Corporation has said it would subsidise gasoline purchases in Florida and California to boost sales in those key markets GM said it would cap the price of gas at $1.99 a gallon for new buyers of some of its 2006 and 2007 full-size sport utilities and mid-size cars in those states. The gasoline credit would be based on a consumer's estimated monthly fuel usage. Consumers would be credited for the difference between the average price per gallon of premium fuel and the $1.99 price, adjusted for the miles they drive,. The credit would be applied monthly to a pre-paid credit card and would be valid until the end of 2007, with no limits on mileage. For example, GM said a California resident who buys a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would see an estimated $103.75 monthly credit. A Floridian who buys a 2006 Buick LaCrosse and drives the same distance would get a monthly credit of about $60, GM said. The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars. ------------------------------------------------------------------------------------- Ok some simple calculations, 1 Gallon US = 3.7854118 Litres They are capping petrol at $1.99, thats $0.53 a Litre which is €0.40 a Litre. The cheapest petrol available in Ireland at the moment is €1.12 Litre. This kind of explains why 6 Litre SUV's are so popular in the states :-D Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

            R Offline
            R Offline
            Rob Graham
            wrote on last edited by
            #5

            And just how valuable could a fuel credit card from a company on the verge of bankrupcy be? We need to graduate from the ridiculous notion that greed is some kind of elixir for capitalism - it's the downfall of capitalism. Self-interest, maybe, but self-interest run amok does not serve anyone. The core value of conscious capitalism is enlightened self-interest. Patricia Aburdene

            1 Reply Last reply
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            • E El Corazon

              Ray Kinsella wrote:

              The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars.

              Individual sales groups of Ford, Toyota and I think one other already started offering free fuel for the summer (no different than cash rebates), on all purchases of SUV's and Trucks below 20mpg. They also started removing the stickers with the published numbers for estimated fuel economy and putting "see sales associate" to encourage the sale before they find out the fuel economy. There have even been applications to the government for reimbursement due to lost marketability of SUV's and Trucks due to high gas prices based on years prior to the gas rise. As well as demands that higher import duties be applied to foreign cars with better fuel economy. That's just all normal day to day stuff in the USA. These complaints have all been going on long before the rise in gas prices, it is just reported now. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)

              R Offline
              R Offline
              Ray Kinsella
              wrote on last edited by
              #6

              Jeffry J. Brickley wrote:

              There have even been applications to the government for reimbursement due to lost marketability of SUV's and Trucks due to high gas prices based on years prior to the gas rise. As well as demands that higher import duties be applied to foreign cars with better fuel economy.

              Not exactily encouraging, instead of rising to the challenging and changing their product for a changing market, the are seeking to force consumers to use a product that doesn't best suit their needs? Are government's in the business of compensating businesses for their failure to adapt, the European Commission refused to let EU governments help ailing european airlines after 09/11, I think Europe's Aviation market is strong because of it. I would be quiet a lefty (politically) but even I would balk at this idea ... ;P Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

              E 1 Reply Last reply
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              • R Ray Kinsella

                From the Irish Times/Reuters General Motors Corporation has said it would subsidise gasoline purchases in Florida and California to boost sales in those key markets GM said it would cap the price of gas at $1.99 a gallon for new buyers of some of its 2006 and 2007 full-size sport utilities and mid-size cars in those states. The gasoline credit would be based on a consumer's estimated monthly fuel usage. Consumers would be credited for the difference between the average price per gallon of premium fuel and the $1.99 price, adjusted for the miles they drive,. The credit would be applied monthly to a pre-paid credit card and would be valid until the end of 2007, with no limits on mileage. For example, GM said a California resident who buys a 2007 Chevrolet Tahoe and drives it 1,000 miles a month, would see an estimated $103.75 monthly credit. A Floridian who buys a 2006 Buick LaCrosse and drives the same distance would get a monthly credit of about $60, GM said. The incentive program comes after GM vowed to avoid the sweeping discounts that boosted sales last year but cut into profitability and hurt resale values for its cars. ------------------------------------------------------------------------------------- Ok some simple calculations, 1 Gallon US = 3.7854118 Litres They are capping petrol at $1.99, thats $0.53 a Litre which is €0.40 a Litre. The cheapest petrol available in Ireland at the moment is €1.12 Litre. This kind of explains why 6 Litre SUV's are so popular in the states :-D Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

                W Offline
                W Offline
                Wjousts
                wrote on last edited by
                #7

                Nice one GM. Let's see if we can encourage people to drive more fuel inefficent cars. :doh:

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                • W Wjousts

                  Nice one GM. Let's see if we can encourage people to drive more fuel inefficent cars. :doh:

                  S Offline
                  S Offline
                  Super Lloyd
                  wrote on last edited by
                  #8

                  I hate that too! However paying for consumer gasoline might give them an incentive to work on that.... BTW GM had an electric car available since 199x. But for reason I cannot fathom (no one really understand I think), GM destroy them all and end its production in 2005....

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                  • C Christian Graus

                    When I was first in the US, there was lots in the paper about gas prices putting people in debt. I worked it out ( that is gallons -> litres ) and while I recognise that it's all relative, and any rise in prices locally means people spending more in that area, I sure wished I had their problems. I went though $80 a week when I was commuting. I still easily spend $20 in a day if I have to do some short trips in the ute with weight on. Christian Graus - Microsoft MVP - C++

                    L Offline
                    L Offline
                    L_u_r_k_e_r
                    wrote on last edited by
                    #9

                    Yeah we pay a lot less in fuel taxes then the rest of the world. Compare all the costs minus taxes. Everyone always seems to forget the tax cost per luter / gallon when sayiong how good the prices in the US are

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                    • S Super Lloyd

                      I hate that too! However paying for consumer gasoline might give them an incentive to work on that.... BTW GM had an electric car available since 199x. But for reason I cannot fathom (no one really understand I think), GM destroy them all and end its production in 2005....

                      L Offline
                      L Offline
                      L_u_r_k_e_r
                      wrote on last edited by
                      #10

                      How long do the batteries in your laptop / cellphone last? think of how expensive it would be to replace all those cells in a car? How much waste would be associated with them as well?

                      W 1 Reply Last reply
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                      • S Super Lloyd

                        I hate that too! However paying for consumer gasoline might give them an incentive to work on that.... BTW GM had an electric car available since 199x. But for reason I cannot fathom (no one really understand I think), GM destroy them all and end its production in 2005....

                        R Offline
                        R Offline
                        Ryan Binns
                        wrote on last edited by
                        #11

                        Super Lloyd wrote:

                        GM had an electric car available since 199x. But for reason I cannot fathom (no one really understand I think), GM destroy them all and end its production in 2005....

                        They were ridiculously expensive, and other than being electric, had no advantages over conventional cars. They had extremely limited range, so were only good for going around town - and had to be recharged practically every night. It just wasn't practicaly enough for most people.

                        Ryan

                        "Punctuality is only a virtue for those who aren't smart enough to think of good excuses for being late" John Nichol "Point Of Impact"

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                        • R Ray Kinsella

                          Jeffry J. Brickley wrote:

                          There have even been applications to the government for reimbursement due to lost marketability of SUV's and Trucks due to high gas prices based on years prior to the gas rise. As well as demands that higher import duties be applied to foreign cars with better fuel economy.

                          Not exactily encouraging, instead of rising to the challenging and changing their product for a changing market, the are seeking to force consumers to use a product that doesn't best suit their needs? Are government's in the business of compensating businesses for their failure to adapt, the European Commission refused to let EU governments help ailing european airlines after 09/11, I think Europe's Aviation market is strong because of it. I would be quiet a lefty (politically) but even I would balk at this idea ... ;P Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

                          E Offline
                          E Offline
                          El Corazon
                          wrote on last edited by
                          #12

                          Ray Kinsella wrote:

                          Not exactily encouraging, instead of rising to the challenging and changing their product for a changing market, the are seeking to force consumers to use a product that doesn't best suit their needs?

                          I believe the statement on the SUV business tax break was "encouragement to use"

                          Ray Kinsella wrote:

                          Are government's in the business of compensating businesses for their failure to adapt

                          In a word, yes. Also protection against unfair pressure to adapt. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)

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                          • E El Corazon

                            Ray Kinsella wrote:

                            Not exactily encouraging, instead of rising to the challenging and changing their product for a changing market, the are seeking to force consumers to use a product that doesn't best suit their needs?

                            I believe the statement on the SUV business tax break was "encouragement to use"

                            Ray Kinsella wrote:

                            Are government's in the business of compensating businesses for their failure to adapt

                            In a word, yes. Also protection against unfair pressure to adapt. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)

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                            R Offline
                            Ray Kinsella
                            wrote on last edited by
                            #13

                            Jeffry J. Brickley wrote:

                            Also protection against unfair pressure to adapt.

                            I don't if I would call market pressure to improve the efficenty of a manifestly uneconomical vechicle unfair, but perhaps we are from different worlds. Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

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                            • S Super Lloyd

                              I hate that too! However paying for consumer gasoline might give them an incentive to work on that.... BTW GM had an electric car available since 199x. But for reason I cannot fathom (no one really understand I think), GM destroy them all and end its production in 2005....

                              W Offline
                              W Offline
                              Wjousts
                              wrote on last edited by
                              #14

                              Super Lloyd wrote:

                              However paying for consumer gasoline might give them an incentive to work on that....

                              Great point. Perhaps if car companies were all required to supply one year (or 10,000 miles) worth of gas with a new car we'd see how quickly they could improve fuel efficiency.* * of course, I'm well aware that in reality the cost of the fuel would just be "included" in the price of the car :sigh:

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                              • L L_u_r_k_e_r

                                How long do the batteries in your laptop / cellphone last? think of how expensive it would be to replace all those cells in a car? How much waste would be associated with them as well?

                                W Offline
                                W Offline
                                Wjousts
                                wrote on last edited by
                                #15

                                Battery technology (or rather the lack thereof) is a major barrier to inovation in both portable electronics and electric automobiles.

                                1 Reply Last reply
                                0
                                • R Ray Kinsella

                                  Jeffry J. Brickley wrote:

                                  Also protection against unfair pressure to adapt.

                                  I don't if I would call market pressure to improve the efficenty of a manifestly uneconomical vechicle unfair, but perhaps we are from different worlds. Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

                                  E Offline
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                                  El Corazon
                                  wrote on last edited by
                                  #16

                                  Ray Kinsella wrote:

                                  I don't if I would call

                                  I wouldn't either... but since the money required for any office is excessively high, the only way is to sell promises to your supporters before they call you. When you do that the rules are set later. The businesses consider it unfair, and defend it as such. The SUV market must be protected against suits for poor weight distributions, they must be protected against market pressure of high efficiency vehicles, etc. When you sign on the dotted line and collect the money BEFORE someone fills in the request, well, this is what happens. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)

                                  R 1 Reply Last reply
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                                  • E El Corazon

                                    Ray Kinsella wrote:

                                    I don't if I would call

                                    I wouldn't either... but since the money required for any office is excessively high, the only way is to sell promises to your supporters before they call you. When you do that the rules are set later. The businesses consider it unfair, and defend it as such. The SUV market must be protected against suits for poor weight distributions, they must be protected against market pressure of high efficiency vehicles, etc. When you sign on the dotted line and collect the money BEFORE someone fills in the request, well, this is what happens. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)

                                    R Offline
                                    R Offline
                                    Ray Kinsella
                                    wrote on last edited by
                                    #17

                                    I can sympathise, corruption in Ireland was rife for years and and still is in many ways. The Irish politicans and builders/planners had a very cosy relationship for years, not suprising then our housing is some of the most expensive in the world. Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

                                    E 1 Reply Last reply
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                                    • R Ryan Binns

                                      Super Lloyd wrote:

                                      GM had an electric car available since 199x. But for reason I cannot fathom (no one really understand I think), GM destroy them all and end its production in 2005....

                                      They were ridiculously expensive, and other than being electric, had no advantages over conventional cars. They had extremely limited range, so were only good for going around town - and had to be recharged practically every night. It just wasn't practicaly enough for most people.

                                      Ryan

                                      "Punctuality is only a virtue for those who aren't smart enough to think of good excuses for being late" John Nichol "Point Of Impact"

                                      E Offline
                                      E Offline
                                      El Corazon
                                      wrote on last edited by
                                      #18

                                      Ryan Binns wrote:

                                      They were ridiculously expensive, and other than being electric, had no advantages over conventional cars. They had extremely limited range, so were only good for going around town - and had to be recharged practically every night. It just wasn't practicaly enough for most people.

                                      True, and I agree with all those points, including alternative fuel vehicles (hydrogen, propane, etc), because you are limited to areas that have the fuel available. You cross the desert here, you are big trouble if you don't have a gas vehicle (well you can get yourself in trouble if you don't plan for 100mile between station too, but that is another issue). I can fillup with gas in Willard, NM, even grab an apple at the general store/station, but not much more than that. However, there are still advertisements about "don't plug in your vehicle, buy ..." (for trucks and SUV's). The insinuation is that hybrid electric vehicles require them to be plugged in, which is highly misleading. They are referring to the fiasco with electric vehicles that caused the drop of the lines, but they are "aiming" them at all the market hybrids which are simply very high efficiency gas vehicles. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)

                                      1 Reply Last reply
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                                      • W Wjousts

                                        Super Lloyd wrote:

                                        However paying for consumer gasoline might give them an incentive to work on that....

                                        Great point. Perhaps if car companies were all required to supply one year (or 10,000 miles) worth of gas with a new car we'd see how quickly they could improve fuel efficiency.* * of course, I'm well aware that in reality the cost of the fuel would just be "included" in the price of the car :sigh:

                                        E Offline
                                        E Offline
                                        El Corazon
                                        wrote on last edited by
                                        #19

                                        Wjousts wrote:

                                        * of course, I'm well aware that in reality the cost of the fuel would just be "included" in the price of the car

                                        which is the problem. Even with this current deal, GM will only raise the price of the vehicle to match and make the buyer believe they are getting the better deal. Instead of buying the gas as needed in the first year, the buyer will be buying the gasoline with interest over the life of the loan. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)

                                        1 Reply Last reply
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                                        • R Ray Kinsella

                                          I can sympathise, corruption in Ireland was rife for years and and still is in many ways. The Irish politicans and builders/planners had a very cosy relationship for years, not suprising then our housing is some of the most expensive in the world. Regards Ray "Je Suis Mort De Rire" Blogging @ Keratoconus Watch

                                          E Offline
                                          E Offline
                                          El Corazon
                                          wrote on last edited by
                                          #20

                                          Ray Kinsella wrote:

                                          corruption

                                          we renamed it to "member incentives" and made it expected. _________________________ Asu no koto o ieba, tenjo de nezumi ga warau. Talk about things of tomorrow and the mice in the ceiling laugh. (Japanese Proverb)

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