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View Full Version : 60 day money back guarantee?

Txflyer
09-11-2009, 06:35 AM
So,
How do the GM dealers on the board feel about this?
okcarl
09-11-2009, 10:10 AM
I missed the surprise IDL for this yesterday. I just from what I have read have a few reservations. What happens with the trades? What about payoffs and negative equity. I could go on and on. This is another short term waste of time from GM
SHACOS
09-11-2009, 11:06 AM
I'm not a GM dealer, but I agree with okcarl. It is another waste of time from GM.

Just look at the 3 day cash back / return policy Lithia offered and how that backfired. Autonation now has a similar program, which I can't imagine is having better results.
okcarl
09-11-2009, 07:10 PM
I spoke with my GM rep and here is what I found out. It is an insurance policy underwritten by the same people who did the loose your job confidence deal. There are a host of caveats that will exclude most people. The key is the customer gets the choice of the insurance to buy the car back or an aditional $500.00 rebate, Since hearing this I am convinced that most people will take the $500 and run. He said what I had expected that it is a move by GM to gain publicity after coming out of the BK. I think at my store the only option will be the $500 rebate, no buy back available.
okcarl
09-11-2009, 07:14 PM
I'm not a GM dealer, but I agree with okcarl. It is another waste of time from GM.

Just look at the 3 day cash back / return policy Lithia offered and how that backfired. Autonation now has a similar program, which I can't imagine is having better results.

When I worked for JM&A I had a dealer in the bay area that was offering a 3 day return policy. It caused all kinds of hell. One problem we ran into was that the F&I dept had a hard time pushing anybody to buy anything because everytime they did they would come back and return the car. The owner was beating me up wondering why his finance dept. could not get above $600 per car.
dgale
09-11-2009, 08:30 PM
Worse news in this announcement is the reduction of profit margin by 1/2 %. GM is trying to cover this up by reducing our contribution to our self marketing reimbursment by 1/2 %. This is cost most dealerships probably an average of $150 per unit if not more. GM could have at least raised the list prices, now there's hardly any room to negotiate. Same old GM, nothing really has changed yet. Time will tell
dgale
09-12-2009, 05:57 PM
Just read the program rules-just more negative cash flow for dealers. Dealers will not be paid their entire amount until the returned vehicle is sold. Still don't know what amount GMAC will floor these vehicles for, perhaps less than our buyback price, leading to more negative cash flow. More paperwork.
lsx only
09-14-2009, 06:21 AM
we are not gonna do it
Txflyer
09-14-2009, 11:17 AM
Watched a broadcast on it today (still have some dealerworld access). It looks like the Mother of all Cluster***ks. Thank God we're no longer a GM dealer. :)
dafuzz1956
09-16-2009, 05:52 PM
Watched a broadcast on it today (still have some dealerworld access). It looks like the Mother of all Cluster***ks. Thank God we're no longer a GM dealer. :)

I am 100% with you Tex, we are all happy we don't have to screw with this mess
XDCX
09-21-2009, 09:09 AM
I think at my store the only option will be the $500 rebate, no buy back available.

Based on the story in Automotive News it seems that most GM dealers are doing the exact same thing.

Has the program done anything to increase showroom traffic?
XDCX
10-14-2009, 11:42 PM
You guy nailed it with your predictions about this program. :)

Automotive News just released the most recent sales results since the program started:

Number of units retailed: 150,000+
Number of customers selecting Return Option: "Slightly over 100"
Number of customers returning their vehicle: 1
I wonder if the program did much to generate showroom traffic? That would be the real gauge of its success.
okcarl
10-15-2009, 03:16 PM
No generation in traffic here. Our new BPG sales this month are strong but if you break it down by brand we have sold 12 total with 7 of those being Pontiac that do not qualify for the program.
XDCX
10-16-2009, 10:03 AM
No generation in traffic here. Our new BPG sales this month are strong but if you break it down by brand we have sold 12 total with 7 of those being Pontiac that do not qualify for the program.

Thanks for the information. That's mostly what I expected.

It didn't seem like GM's Money Back Guarantee generated very much media attention and I think the buying public is skeptical because they've heard of deals like this before.

Even the "Assurance" programs that Hyundai started have lost their impact.