GM's Money Back Guarantee Comes With Lots Of Fine Print
GM's new 60-day money back guarantee (good through November 30th, 2009) on new car purchases sounds pretty straightforward—if you don't want the car for any reason (it doesn't have to be a good reason), you can bring it back. But it has a few rules that you should be aware of before your purchase, notes the Associated Press.
The first one is that you actually only have a 30-day window in which to return the vehicle, because you can't bring it back within the first 30 days. This is to increase the chance that customers will get over any buyer's remorse and settle into accepting the car's flaws over the first month of ownership.
The second, and more dangerous, rule is that the car can't have more than $200 in damage, and GM gets to decide what constitutes damage. If you really decide you want to take it back, you'd better be extra careful with it during those first 30 days, and cross your fingers that GM won't nitpick and find a way to disqualify the return.
You won't get back any money you spent on add-ons, aftermarket equipment, or title and registration fees. Just the cost of the vehicle + sales tax.
The 30 day cooling off period doesn't sound that terrible, although it's mostly for GM's benefit and not the customer's. That the refund should only cover cost + taxes actually makes sense, because otherwise GM would be opening the door to unscrupulous retail renters.
What we find pretty alarming, however, is the $200 damage threshold. As the AP notes, "the cost of vehicle repairs - even small, cosmetic ones - can easily exceed $200," and since you're stuck with the car for 30 days even if you decide on day #2 to return it, you're going to have to hope nothing happens until the return window opens. The one saving grace to this rule is that repairs covered by warranty are excluded from the $200 cap, fortunately. Still, we'd park that new vehicle in a garage and not touch it for the rest of the month just to be on the safe side.
"U-Return? GM's refund promise has some stop signs" [Associated Press]
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Comments:
@dohtem: Agreed. I saw their "chevrolet is more green than toyota" ad, and giggled. Chevy's still SUCK!
The problem with a GM car is that something *will* break within 30 days, something that shouldn't, but something they'll have break nonetheless.
You couldn't pay me to drive a Government Motors car, especially now. I'm sorry, I'm tired of my American car.
"Still, we'd park that new vehicle in a garage and not touch it for the rest of the month just to be on the safe side." Even better, pull a Safe Auto on GM by encasing the car in pillows!
Totally off topic but: WHY CAN I NEVER GET THE GODDAMN BAG OF CRAP?!?
:'(
I don't see the damage condition as a problem. They're already going to have to take a kick in the teeth on the car since they'll have to resell it as used. They're offering a pretty generous mileage allowance (4000 miles) and it's really not their fault if you get door dings or hail damage or something while you have the car. If you decide on the second day you have the car that you hate it and you're terrified that it'll get a $201 scratch, put it in the garage and cover it with soft blankets or something.
Swell.
Most "new" cars have some level of damage due to shipping errors, handling, etc, that could easily be adjusted above $200 before you even see the car.
@Oranges w/ Cheese is lonely: They are doing that in all their ads now. Cherry picking stats on paper and comparing them to similar models from Honda or Toyota (It's always Toyota or Honda!). I'm thinking, if your industry standards are dictated by Honda and Toyota, aren't you implicitly telling your potential customers to go that route instead?
@MostlyHarmless:
Considering some of the other comments denoting the quality of GM Vehicles, people could argue you ARE on topic.
Why didn't you mention the $500 rebate that you can get if you waive the return option?
I get that $200 isn't much to allocate for damage, but if I buy a couch, spill something on it, and decide to return it... would I expect the store to take it back?
This seems like a reasonable CYA for GM.
This is another reason to buy used cars. With a used car it is still valued at the same amount that you paid for the car so you can sell it 15 days or 60 days after purchase if you want to.
@MostlyHarmless: Maybe off topic, but it definitely gave me luls. I definitely heard Willam screaming about the sailboat in Mallrats when I read it...
One better hope they don't get even the most minor paint scratch or even have a bird crap on it.
@GearheadGeek: This is all true, but why should GM get the benefit of advertising this program if the company, in trying to protect itself, makes living up to the terms of the deal unrealistic for many otherwise interested buyers?
@sir_pantsalot: I like buying used cars because they already have dings and/or scratches. The pressure is off to keep the car "brand new".
What do dealers charge these days for labor, $50 or $60 bucks an hour? So a repair that takes more than 3 hours, you're already over the limit, ignoring parts.
That said, I really do believe that American cars have improved to the point that they're worth buying. The problem is, I also believe that their resale values are bad enough to not buy new (never mind the depreciation you hit just for rolling a "new" car off the lot).
This is a pretty aggressive marketing tactic by GM. Desperate times call for desperate measures, and GM is in bad shape. The funny thing is that we should all root for GM's success, considering the government's investment in them, no matter how bad they've treated US consumers for decades or the ill will they've generated through the years.
What makes anyone think a "return" policy on a car is a selling point big enough to buy one?
One door ding and you are keeping your American piece of crap...
On the flip side, expect a boom in bubble wrap sales as GM customers wrap their cars in several layers of bubble wrap for the first 60-days of ownership...
If on day 2 I decided I didn't want it- it would be parked in a garage and started daily for 28 days.
Customer: "Excuse me I'd like to return this vehicle."
Salesman: "Certainly. May I ask why?"
C: "........For spite..."
S: "Spite?"
C: "That's right. I don't care for the salesman that sold it to me."
S: "I don't think you can return an item for spite."
C: "What do you mean?"
S: "Well if there was some problem with the vehicle. If it were unsatisfactory in some way, then we could do it for you, but I'm afraid spite doesn't fit into any of our conditions for a refund."
C: "That's ridiculous, I want to return it. What's the difference what the reason is."
S: "Let me speak with the manager...excuse me.....Bob!"
(walks over to the manager and whispers)
S: "........spite....."(Manager walks over)
Manager: "What seems to be the problem?"
C: "Well I want to return this car and she asked me why and I said for spite and now she won't take it back."
M: "That's true. You can't return an item based purely on spite."
C: "Well So fine then ..then I don't want it and then that's why I'm returning it"
M: "Well you already said spite so......"
C: "But I changed my mind."
M: "No...you said spite...Too late."
@Cornelius047:
Well, I had a longer rebuttal but it got eaten by the internet. So short version.
$200 on a random vehicle worth about $15,000 is 1.3%
Sofa from pottery barn, 1600 dollars. 1.3% of 1600 dollars is $20. Spilling something on a sofa is probably more than $20 dollars.
So its like not being able to return a 1600 dollar sofa when you do damage equal to about 20 bucks to it. You can't even take the 20 bucks out of your return. You just have to keep your sofa.
@Liam Kinkaid:
C: "Well...now I want to return it because I was not happy with the spite return on my investment."
@rpm773: Because they offer the program? Because they're the only manufacturer offering a similar program now? Because they're not keeping the terms a secret just because they don't spell them out in detail on the TV commercial?
Crap Crap Crap. Returns in 60 days. We'll pay you're payments if you are laid off. Gas for $1.49 a gallon!
Why don't you just guarantee the car will LAST?!!!
A 100,000 mile/10-year mechanical warranty will SELL CARS.
Just ask Kia or Hyundai.
There is a reason people buy Hondas and Toyotas. (and Kias and Hyundais, too)
They actually have a 5yr/100,000 mile warranty, which is more reasonable than Kia or Hyundai. I know very few people that only drive 12k per year. The terms of the guarantee are reasonable, considering they will have to resell the car as used.
Ok, 10k per year, I was thinking of those ridiculous terms on leases.
I think i'll buy one of the cars that gets returned for dirty cheap. Now that's a deal.
@nerdtalker: This has been a problem with GM cars since long before the government bailed them out. I owned a Buick Century once that convinced me that I should NEVER, EVER buy American made cars again. Every stupid little nickel and dime thing that COULD break, did break. I've heard many times over the years that GM did that on purpose to increase sales of parts, etc, and I will NEVER buy American cars again because of it.
@OrlandoDude: Yep, pretty much. Unfortunately, the US auto companies have had 30 years to get with the program but they decided not to and now they're paying for it. It's a real shame because I would LOVE to buy an American made car, but I learned my lesson the hard way. Fool me once, shame on... etc, etc.
Imagine if you managed to keep the car in absolute prestine condition during the 60 days. Then drive it back to the dealership only to get the door dinged by the guy next to you going into the showroom. I can totally see some dealer hiring someone to do that.
$200 damages?
$200 wear and tear?
$200 is $200 and damages versus wear and tear is hard to decipher.
Do dirty, greased stained, floor mats count as wear and tear or damages? Chocolate ice cream stain on the back seat? How about a 2mm rock ping on the hood of the car?
GM definitely needs some limits or the product renters of the world are going to take advantage of the situation. Hells Bells, if I was traveling to a far off city for a 45 day visit I might be tempted to "rent" a big Caddy for the visit and return the sucker as I left town. Hell of a lot cheaper than renting a micro-car from Screw-ya-over-rental-cars.
@legwork: "Well sir, everything seems to be fine with this car but you see, the new car smell is pretty much gone, that will cost about 300 dollars to fix."
So, could i get an instore credit for a used vehicle if it does have over $200 in damages?
What do they mean by "add-ons?" Does this include optional equipment or dealer installed equipment like floor mats or upgraded stereo?
The $200 damage limit actually seems fair as does the 4,000 mile limit.
This is really one heck of a test drive.
@OrlandoDude: My wife and I bought 2 vehicles in 2005: A Chevrolet Colorado pickup and a Hyundai Tucson. The Chevrolet hasn't had any problems at all and the Hyundai has had just about every minor thing go wrong with it. Warranties are fine and dandy, but what about the annoyance factor? Also be careful about manufacturer's warranties. According to a Hyundai representative I spoke with via their 800 number on the phone, Hyundai's warranty stipulates that a servicing dealer can decide whether or not to honour a "covered defect" or not. Naturally, a dealership won't warranty a vehicle that hasn't had the regularly scheduled maintenance services, but this goes beyond that. Translation: if the dealership has taken it too much in the shorts that year or month in their warranty claims, they can decide whether or not they want to repair your car for free under warranty for a repair that would normally be covered. I asked the guy if he thought that was a bit too subjective and he stated that the Hyundai warranty was a simply a "guideline." No more Hyundais for me; a 10-year warranty doesn't mean squat if the dealership can decide on a whim if they want to cover your legitimate warranty claim or not.
I have owned 5 Pontiacs, the last one purchased in June when the rebates were so high (GM Card and dealer) that I paid less for this car than my last.
I have never had a single problem with any of them. Nothing. Run grest, look good, etc. I am lost as to why Pontiac is dead. No issues at all.
@Cornelius047: It's over 200 to replace a bumper with an unintelligibly small scratch on it. Every body panel on there is well over 200 to replace. Heck, dealers frequently charge 150 for the floor mats. A "scratch" doesn't have to be from running it into a parking meter, of course, random road usage is sufficient to mark something in the bottom of your car in a visible but usually negligible way.
Of course, I have to doubt they would be as strict as technically possible. That is, of course, if GM is actually handling the returns and not the dealer. If the dealer is handling the returns: Good luck!
@Liam Kinkaid: It's from an episode of Seinfeld called "Wig Master," but I couldn't find video of it.
My Civic doesn't need a return policy. It's a Honda.
Hehehe. And it was made in America, too!
This makes me think of that scene in Tommy Boy where they were arguing with the guy about putting a guarantee on the box.
@MostlyHarmless: Some of the woot-off checkers have a feature to auto-buy the bandoleer of carrots. I figure that enough people are using that to melt down the server by themselves.
@rpm773:
Going a month without having $200 damage done to a car is not unrealistic. If the car gets damaged and you want to return it, just pay to fix it.
The funny thing is, Pottery Barn probably makes as much profit on a $1600 sofa as GM makes on a $15,000 car.
Do GM cars usually come with floor mats? If that's an accessory you pay extra for (it was with my Honda), you won't need to worry about them because you won't be getting that money back.
This company still sucks.