"GM To Begin Selling Cars with 60-Day Money Back Guarantee" Edmunds Daily

GM To Begin Selling Cars with 60-Day Money Back Guarantee

2010 Buick LaCrosse.jpg

In an attempt to ignite sales and instill confidence in the post-bankruptcy automaker, GM will begin a 60-day no-questions-asked money-back guarantee offer for all its new 2009 and 2010 vehicles. GM will begin the new program Monday, September 14 and extend it through November 30.

Offering new cars with a no-questions-asked money-back guarantee has not been attempted in the U.S. auto market before, GM said. Guarantees from Oldsmobile and Saturn offered return policies which were not as comprehensive. A similar program offered in the U.K. by GM's Vauxhall resulted in a 2-3% return. GM expects a comparable rate of return here in the U.S.

The offer is part of a new "May the Best Car Win" marketing campaign that GM is rolling out as a way to re-engage buyers after the frenzy of the government's Cash for Clunkers program. The automaker is hoping the bold return policy and its earlier introduced 100,000 mile/5-year powetrain warranty, will draw new buyers to the newly restructured company.

Currently, cars are sold with no "cooling off period" meaning that if someone decides they don't like the car they can't return it. Most products sold through other retailers can be returned for refund or exchange. Car dealers have strong lobbying power though and have resisted consumer protections.

GM has clearly been forced into this money-back guarantee due to slow sales. The new plan will be hyped during Sunday's football games by GM's government-appointed chairman Edward Whitacre.

Details of GM's new "Satisfaction Guarantee":

- Offer covers 2009 and 2010 Model Year Chevys, Buicks, GMCs and Cadillacs (except medium duty trucks)
- Customers (one per household) can return their vehicle between 31 and 60 days with less than 4,000 miles
- Customers will be informed in writing before they buy the vehicle of the terms of the Satisfaction Guarantee
- Customers must take delivery by Nov. 30
- The Satisfaction Guarantee covers the vehicle purchase price and sales tax, but not other add-ons like accessories, negative equity on a trade-in or other fees; other restrictions apply
- Leased vehicles are not included
- More details will be available beginning Monday, Sept. 14, at the websites for Chevrolet, Buick, Cadillac or GMC.

This program will help buyers who don't do a thorough job of evaluating a vehicle during the often too-brief test drive. Some aspects of vehicles, such as seat comfort or ergonomics, take time to assess. If, after living the with vehicle for over a month, the buyer discovers something they don't like about the vehicle, they can return the vehicle to the dealer.

Furthermore, many buyers are pressured into purchasing a car which puts undue pressure on their family budget. Now, for GM vehicles at least, buyer's remorse is a thing of the past.