Why on Earth would you buy this?

[BWillie]

http://cgi.ebay.com/50-Shell-Gas-Gift-Card-Certificate-FREE-SHIPPING_W0QQitemZ220193729518QQihZ012QQcategoryZ31411QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

It is a $50 gift card to a Shell Gas Station that sold for almost $3 more than it's value. Why would anybody buy a gift card for three dollars more than it is worth?

I stumbled upon the gift card ebay market for cash because I had bought my step-dad a $50 Home Depot gift card, but had forgot it at home when I went back for the holidays. I sold it on ebay and got $43 for it. So how are almost all of these gas gift cards being sold above the value of them?

If one could buy a hundred thousand of them a month, one could make three dollars off of every card sold. :hmmm:

[bowener]

It could be a friend of the person bidding on it at the end if the card didnt sell for 'enough'. then you just claim everything went through as normal and put it on another time...

[patteeu]

If you think gas is going to go up in price substantially (e.g. $4.00 per gallon when the summer driving season hits), buying an overpriced gas card now that you can use then might still put you ahead.

[Fire Me Boy!]

It could be a friend of the person bidding on it at the end if the card didnt sell for 'enough'. then you just claim everything went through as normal and put it on another time...
Not smart. You'd still have to pay the auction fees associated with the "sold" auction and you'd have been better off just accepting a lower bid amount.

[stumppy]

They have things like that for procrastinating mofo's like me. The ones who do their x-mas shopping on x-mas eve and pick up the birthday present on my way to the party.

[Dartgod]

If you think gas is going to go up in price substantially (e.g. $4.00 per gallon when the summer driving season hits), buying an overpriced gas card now that you can use then might still put you ahead.
That doesn't make sense. You can still only buy $50 worth of gas. It makes no difference what the price per gallon is.

[Fire Me Boy!]

That doesn't make sense. You can still only buy $50 worth of gas. It makes no difference what the price per gallon is.
But $53 in gas NOW might equal $60 in gas this summer.

It's like prepaying something for less. You're gambling that you'll end up paying less now and that prices will go up.

[stonedstooge]

Some reports I've read tell us to prepare to pay over $4.00 per gallon this coming summer. As soon as heating season is over, watch out. I'd be using the card before that time arrives.

[Simplex3]

But $53 in gas NOW might equal $60 in gas this summer.

It's like prepaying something for less. You're gambling that you'll end up paying less now and that prices will go up.
The card is for $50, not X gallons. You aren't getting gas futures when you buy the card. You're just getting a card that will net $50 in gas whatever the price happens to be when you purchase it.

It's a $50 bill that can only be spent at one brand of gas station. Nothing more, nothing less.

[Demonpenz]

I would buy it gas is supposed to go up to 4 or 5 dollars this summer

[stonedstooge]

That's true but someone is gambling that say the 15 gallons of gas the $50.00 will buy at this time, if gas tumbles to $1.00 a gallon the card when used would then purchase 50 gallons of gasoline. About as smart a bet as sticking money into a friggin slot machine. Don't think we will ever see $1.00 a gallon gas again unless we take over the complete Middle East and Venezuala (sp).

[Darien25]

The card is for $50, not X gallons. You aren't getting gas futures when you buy the card. You're just getting a card that will net $50 in gas whatever the price happens to be when you purchase it.

It's a $50 bill that can only be spent at one brand of gas station. Nothing more, nothing less.


Good explanation. I really can't think of a reason to buy a typical gift card for more than face value to begin with.

[Hog's Gone Fishin]

But $53 in gas NOW might equal $60 in gas this summer.

It's like prepaying something for less. You're gambling that you'll end up paying less now and that prices will go up.


I think he's trying to point out that the card is for $50, not for 15 gallons of gas.

[Darien25]

That's true but someone is gambling that say the 15 gallons of gas the $50.00 will buy at this time, if gas tumbles to $1.00 a gallon the card when used would then purchase 50 gallons of gasoline. About as smart a bet as sticking money into a friggin slot machine. Don't think we will ever see $1.00 a gallon gas again unless we take over the complete Middle East and Venezuala (sp).


But you are still out $50 either way. You've gained nothing by purchasing a $50 gift card and using it later. In your scenario I could walk into the gas station with $50 cash in hand and still buy the gas at $1 a gallon. In this case the guy went into the hole by spending $53.

[Simplex3]

In this case the guy went into the hole by spending $53.
He also limited his choice, further adding to the risk. Not only does he only have $50, but now he's forced to spend that $50 at Shell. If Shell's gas price is 5% above market value he's going to get extra f**ked.