GM's new money-back guarantee

[Tilted]

Meltdown 101: GM gambles on money-back guarantee

DETROIT - For years, General Motors Co. and its Detroit rivals have argued that their cars are as good as or better than those made by Japanese brands, but consumers either didn't believe them or didn't hear the message.

So in a desperate attempt to lure back skeptical buyers, GM is introducing a 60-day guarantee offering people their money back if they aren't satisfied with its vehicles.

The deal, aimed mainly at car buyers who fled GM due to quality problems in the 1970s and '80s, is a bold move that could boost sales and repair a tarnished image. But it also could cost the automaker dearly if its cars don't measure up to those made by Honda and Toyota, which consumers now view as superior.

Q: How does the guarantee work?

A: Consumers who buy new 2009 and 2010 Buick, Chevrolet, GMC and Cadillac models can return them with no questions asked, between 31 and 60 days of purchase, for a refund of the purchase price and sales tax. Cars cannot have more than 4,000 miles on them and the owners must be current in their payments.

Only one return is allowed per household. Leased vehicles are not covered. The refund does not include equipment added outside the factory or fees charged during the purchase.

The program starts Monday and runs through Nov. 30, which is the last day customers can take delivery of their new vehicles to qualify for a refund.

 

[aps45819]

Cool

Drive a new CTS for a month for free.

Guess this will require dealers to hold and store trade ins untill the buy-back period is over.

 

[vanbells]

And this will be the end of GM. I love my Toyota.

 

[ShyOne]

If you had a trade in, you can't get it back unless you buy it back from the dealer.

 

[Larry Gude]

I don't see what the problem is. Why can't they just offer a $5,000 or $10,000 or $20,000 or $30,000 or however much of a credit it takes to get customers in the door?

 

[backagain39]

I have always had bad luck with GM products sooooo they could give me the keys to a new one and I wouldn't take it.

 

[aps45819]

If you had a trade in, you can't get it back unless you buy it back from the dealer.

If you void the deal, why wouldn't they have to return your trade in?

 

[ProfMoneyWise]

If you void the deal, why wouldn't they have to return your trade in?

They do not just hold your car to see if you will want it back. They will do the deal with you as if it were a regular trade-in type purchase. If you bring back the vehicle you need to re-buy your old one if you want it. Why? Because you traded it in.

This better question is how are they able to do this?

Answer: Who owns GM now? That would be all of us. Nice they are able to run a nice commercial with a CEO who has no car experience (he comes from the telecommunication industry) who makes a case that the GM cars have somehow become so good all you gotta do is drive one and you will see what he means.

The depreciation that occurs when you drive it off the lot is not really GM's concern anymore either. Since they don't really own the company It is you and I's depreciation. But don't worry, they bought insurance to cover themselves there. Wow. Bet the premium is high huh? Well again why worry. Just pass the premium cost onto you and me in the cost of the car and any financing they talk us into.

I believe this promotion is only valid for the next few months. At least they limited the duration of this attempt to get us into the showroom. I can imagine the paperwork is hefty on this deal and any return is most likely not easy to make and I can imagine every scratch, blemish or other supposed wear and tear is going to be scrutinized fully.

For what it's worth:

1. Paid for cars are possible.
2. The average millionaire buys used cars.
3. A new car depreciates 60% in the first four years.
4. Unofficial analysis by yours truly shows the first 25,000 miles costs $10K in depreciation. The next 75,000 miles costs another $10K. I say "you first world"
5. Opinion: Unless one is debt free, live on a plan (budget), have 3 to 6 months of an emergency fund, are investing for your retirment, have the kids education (if applicable) taken care of, have a plan to pay off your home and have a net-worth of $1M or more . . . you don't need a new car.