GM's return policy may not be worth the hassle

Page 1 of 3  
The Devil is indeed in the details.
GM's return policy may not be worth the hassle http://preview.tinyurl.com/y8a6gg7
DAN STRUMPF Associated Press
You fell in love with that $22,000 Chevy Malibu because of its color, style and price. After driving it home, you realize it's not what you wanted. Maybe it's the way it handles on the highway, the location of the cup holders or the shape of the seats.
Don't worry. Bring it back for a refund, no questions asked, says GM's Chairman and new TV 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 car turns to hate, you'll need to drive very carefully and make sure to limit how many miles you put on the car. And don't expect your wallet to be made whole even if you follow the fine print 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 anytime between day 31 and day 60 of ownership.
That seems like a narrow window, but the policy makes sense for GM. Buyer's remorse can set in within days for new customers, who grouse over things like knobs and cup holders appearing 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't have more than $200 in damage -- and GM, through an inspection, gets to decide what constitutes that much damage.
Q : Wow, $200? Doesn't even a small scratch or dimple caused by kicked-up gravel cost that much 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 protect itself from customers returning badly damaged vehicles and expecting a full refund.
Gilles says the $200 limit is on the low side -- particularly when coupled with the prohibition on 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 are stacked against you."
The lesson for consumers: Be extra careful during those first two months if you're thinking about 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 and sales tax.
GM won't refund the title, registration and other fees, which can add up to several hundred dollars depending on your state.
"It's not really unfair because otherwise you've rented the car for free for 30 to 60 days," says Terry 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 rust protection, aftermarket equipment and the like. So choose those add-ons carefully if you think you 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 4,000 miles on it. Also, owners must be current on payments.
Forget buying his and hers pickup trucks. Only one return is allowed per household. In addition, 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 can take 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, also allows buyers to return their vehicle. But the key difference is a buyer is eligible only if he or she loses their source of income. In addition, the policy kicks in after two months of ownership, 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 traded in. In any case, after 30 days it's probably sitting on a used-car lot or in the hands of another driver. Instead, the dealer will treat the value of your trade-in as money toward your new car and refund 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 an insurer, 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 bought an insurance policy through the firm cynoSure Financial Inc. to cover the cost of any reimbursements, spokesman John McDonald says. The policy was purchased using funds 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 that GM is quietly offering an incentive NOT to participate.
Customers who waive the return policy receive a $500 rebate toward the purchase of their vehicle. The sensible choice seems to be to settle on the car you really want and take the rebate, 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."
--
Civis Romanus Sum

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Sure is. But you and I were right on the day it was announced.

Not hard to do, 6 days after I bought my F150 I got two rock chips into the windshield. Fine print is everything.

There is amore incidious reason for 31 to 60 days. By that time your credit score knows of the loan. Now most who need to take loans, do so marginally. To swap vehicles with once mortage in place and to buy another is super risky so getting another ride for many is impractical.

LOL. Does that include if the accident was via a GM defect?

It isn't costing GM anything at all. Government Motors is getting it's money from you and I via debt-taxation, corporate welfare and corruption moneys from BO's TARP slush fund.

And GM zealots thought is was easy confidence move.

Switch and bait. Return policy in fact then costs you $500. Not free.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
But, but, but why do Toyota and Honda not allow one to return a car when they change their mind?

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Let me ask this...$22,000 is a pretty cheap price. GM has been losing a fortune, and continues to bleed.
How do they continue to sell cheap products like this, even though they are losing money, without being called for "dumping".
I think we all know that it IS, in effect, dumping, but where does the legal aspect cave in?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

GM has already lost everyhing and then some.
Taxpayers now have that burden. At least when Obama's credit card comes due.

Government Motors. Can you accuse the government of dumping?

Sure is. Obama-law, is his own. Ask the shafted GM (Old) bond holders. Judge didn't even give a reason, just dismissed their claims.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Don't you EVER do any research before you send off your goofy posts? GM is set to pay off their government loans a year or more before they are due, dummy.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Your record on predictions has been dismal thus far. The GM government loans will be paid off by 2013, two years before they are to come due, dummy. Every one of it current brands will have a full line of products within two years.
The fact is GM is making a profit in every vehicle it sells but it has been investing billions in new plants and products, that are proving to be better than many from the competition. READ the customer survey and look at the CAFE guide, WBMA

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Actually, I predicted GM would go bankrupt while you said they would not.
Dream on.

No one knows for sure the last time GM made a profit. They made a big stink about 5 years ago about making money but restated to a lost about 2 years ago.
GM is dying company. Just time, when the fed gets cash strapped GM will go under once and for all.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
I never said the new GM was currently earning a profit. What I said was they are making a profit on every vehicle they sell and that is a fact.
It is the cost of bringing so many totally new outstanding models to market that is keeping the corporation from earn a profit at this time, dummy.
As I said your record on predictions has been dismal thus far, there is little chance you current ranting will be as well LOL

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Are you referring to the Tundra? LOL

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Where do you get the goofy idea GM looses money when the sell a vehicle?

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
GM financials are due out soon. In 2 days actually. Read and weep.
GM sells each car witha taxpayer debt subsidy.

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Let me ask this...$22,000 is a pretty cheap price. GM has been losing a fortune, and continues to bleed.
How do they continue to sell cheap products like this, even though they are losing money, without being called for "dumping".
I think we all know that it IS, in effect, dumping, but where does the legal aspect cave in?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Let me ask this...$22,000 is a pretty cheap price. GM has been losing a fortune, and continues to bleed.
How do they continue to sell cheap products like this, even though they are losing money, without being called for "dumping".
I think we all know that it IS, in effect, dumping, but where does the legal aspect cave in?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Ok, lets sum this up: 1: Car must be returned between 30 and 60 days after purchase. 2: Car can not have more then $200 of damage. 3: You won't get title and regestration fees back. 4: You don't get that rust protector you bought back. 5: You can only drive 4,000 miles. 6: If you die, no refunds. 7: GM's plan is much better then Hyundai's, but the blogger who wrote this review is too biased to admit it.
Wow, all I see here are things that are normal. Does Wal-Mart take back shirts that you have worn for 3 months, spilled things on, and torn? I think not. Hell, every car I have rented has had more requirements then GM's plan. Try returning that rental with even the smallest scratch, and see what happens. If someone is so biased they can't see the good in this program, they really need to look at another maker.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

I honestly dont think I am biased. Buy the car if you like.
This sort of plan appeals to a very defined segment of the US population.
If it works for you, DO IT>
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

From what I have read from you HLS, you are indeed biased. You are still fuming about the gasket failure on your 1990's GM. I'm not saying you shouldn't be, I'm only saying you are biased.

What sort of the population are you talking about though? Seems like a decent deal to me. If you buy the car, and don't like it, take it back.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote in message

It isnt that simple, and you KNOW it.
This offer appeals to the people who are least likely to be able to afford a decent car. Entice them in, and to hell with them if they didnt read the fine print.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Related Threads

Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here. All logos and trade names are the property of their respective owners.