GM Return Promotion- The devil is in the details - here are the details

[jake75]

From an articleU-Return? GM's refund promise has some stop signsDings, road trips, or missed payments could rule out returns under GM's new money-backprogram NEW YORK (AP) -- You fell in love with that $22,000 Chevy Malibu because of its color,style and price. After driving it home, you realize there's a lot to hate -- maybe the way ithandles on the highway, the location of the cupholders or the shape of the seats.AP - FILE - In this Feb. 25, 2009 file photo, a sign at a General Motors car dealership is ...AP - FILE - In this Feb. 25, 2009 file photo, a sign at a General Motors car dealership is ...Don't worry. Bring it on back for a refund, no questions asked, says GM's Chairman and newTV pitchman Edward Whitacre Jr.But is it really as easy as returning an ill-fitting shirt to Macy's?As with any deal, it's a good idea to read the fine print. As your love affair with the new carturns to hate, you'll need to drive very carefully and make sure to limit how many miles youput on the car. And don't expect your wallet to be made whole even if you follow the fineprint to the letter.Q: So, I can bring back my car or truck to the dealer anytime?A: Not so fast. No returns are allowed within the first 30 days of purchase. It's anytimebetween day 31 and day 60 of ownership.That seems like a narrow window, but the policy makes sense for GM. Buyer's remorse canset in within days for new customers, who grouse over things like knobs and cup holdersappearing to be in the wrong place. Owners can grow more accepting of problems over time,says Jack Gilles, director of public affairs for the Consumer Federation of America.Q: Do I have to cite a defect?A: No. You can hate the color for all GM cares. But the policy says a returned vehicle can'thave more than $200 in damage -- and GM, through an inspection, gets to decide whatconstitutes that much damage.Q: Wow, $200? Doesn't even a small scratch or dimple caused by kicked-up gravel cost thatmuch to fix?A: It's true the cost of vehicle repairs -- even small, cosmetic ones -- can easily exceed $200.(Repairs covered by warranty are excluded.) But GM insists it had to set a limit to protectitself from customers returning badly damaged vehicles and expecting a full refund.Lena Pons, transportation analyst for the consumer watchdog group Public Citizen, says theamount of damage GM assesses depends on "how much they're going to nitpick" scrapes,dings and dents on returned vehicles.Gilles says the $200 limit is on the low side -- particularly when coupled with the prohibitionon returning before 30 days."You combine that with the 30 days, it's easier and easier to get $200 in damage," he says.Plus, with GM making the determination on damages, "it may appear that the cards arestacked against you."The lesson for consumers: Be extra careful during those first two months if you're thinkingabout returning your new ride. And no car can be returned if it's been in an accident.Q: If I keep the car free of dings, I get all my money back?A: In this case, "money back" doesn't mean all your money. Just the cost of the vehicle andsales tax.GM won't refund the title, registration and other fees, which can add up to several hundreddollars depending on your state."It's not really unfair because otherwise you've rented the car for free for 30 to 60 days," saysTerry Connolly, dean of the Ageno School of Business at Golden Gate University.GM also won't refund any accessories purchased through the dealer, like paint or rustprotection, aftermarket equipment and the like. So choose those add-ons carefully if you thinkyou might return the car.Q: What else do I need to look out for?A: Don't go on a cross-country jaunt. The new car or truck cannot have more than 4,000miles on it. Also, owners must be current on payments.Forget buying his and hers pickup trucks. Only one return is allowed per household. Inaddition, leased vehicles are not covered.And GM says if you die, no refund.The program started Sept. 14 and runs through Nov. 30, which is the last day customers cantake delivery of their new vehicles to qualify for a refund.Q: How does this compare with the Hyundai Assurance program?A: The Hyundai Assurance program, which the Korean automaker launched in January, alsoallows buyers to return their vehicle. But the key difference is a buyer is eligible only if he orshe loses their source of income. In addition, the policy kicks in after two months ofownership, but is good for a year.Q: If I return my vehicle and everything is in order, will I get my old car back?A: No.According to GM spokesman Pete Ternes, dealers aren't obligated to return the car you tradedin. In any case, after 30 days it's probably sitting on a used-car lot or in the hands of anotherdriver.Instead, the dealer will treat the value of your trade-in as money toward your new car andrefund you the full price, Ternes says.Q: What happens to my returned car?A: Dealers will put the returned vehicles up for sale on their used car lots. GM, through aninsurer, then reimburses the dealer for any loss he or she takes on the refund.Q: How much could this program wind up costing GM?A: GM purchased an insurance policy through the firm cynoSure Financial Inc. to cover thecost of any reimbursements, spokesman John McDonald says. The policy was purchased usingfunds from GM's marketing budget, which that automaker does not disclose.Q: With all the restrictions, why would anyone want to participate in this program?A: Several consumer experts say the hassle isn't worth it, particularly when you consider thatGM is quietly offering an incentive NOT to participate.Customers who waive the return policy receive a $500 rebate toward the purchase of theirvehicle. The sensible choice seems to be to settle on the car you really want and take therebate, says Gilles of the Consumer Federation of America."In my book, spend a little more time checking the car out and take the 500 bucks."On the Web:Details on GM's 60-day return policy: http://www.gm.com/guarantee/index.jsp?brandIdgm

[scherry2]

I find nothing wrong with that. It stops alot of people thinking they're gonna drive for free. GM studies customers, believe me when I say that the new GM is so much more quality and customer satifaction driven. I don't think I have to defend GM I'm just telling you what I see every day. And the quality dept of GM at the assembly plant level almost has more power than the plant manager. The top manager in Quality/Reliability now answers to Detroit. with the old GM the plant manager oversaw quality. Like the commercial says "try the new GM out you don't like it bring it back"Toyota or any other company offering what GM has? no devils here.

[jimincalif]

GM has to have restrictions, otherwise they will be taken advantage of. Everything sounds pretty reasonable here, though I agree the $200 threshold is low and subject to dealer abuse. Seems like they should allow a slightly higher amount with the buyer absorbing the difference. After all, you can't return other merchandise if it has been broken or damaged.

[star_deceiver]

It's a good deal for those who lose their job or do a horrible job (if any) at vehicle research. And another $500 off isn't a bad trade-off for not getting that policy.

[jake75]

Yeh - I'd take the $500 too.I did not mean to disparage GM for these "details", just thought it was interesting information.I am 66 years old - have benefited from the GM Card earnings four times - twice for me, and twice more for my children. Lifetime redemptions a little more than $8,000. While I am not in the market for a car anytime soon as I have a 2007 T&C with only 9,000 miles and my 2009 Vibe only has 3,000 miles, I still rack up points on my GM Card because when I am ready there may be a GM car that suits my needs.

[Old Tele man]

...my tongue-in-cheek guidance: "...NEVER bend over to pick up any paperwork that's been dropped on to the floor."...and, the "...finer..." the fine-print, the more you're gonna be screwed!