General Motors launches 60-day satisfaction guarantee

General Motors is battling an image problem. As seen in the results from our recent nationwide Auto Pulse Survey, new car buyers are less likely to consider a GM product now than a year ago, with the chief reasons being the company’s economic condition (58 percent) and unappealing product offerings (49 percent). GM hopes to change perceptions with its “May the best car win” marketing effort that provides a 60-day satisfaction guarantee on 2009 and 2010 model-year vehicles from Buick, Cadillac, Chevrolet, and GMC. (Read: "Survey: Car buyers look to buy American, sound off on concerns.")
 
Starting today and running through November 30th at participating dealers, the program allows consumers to return a purchased vehicle for a full purchase-price refund, including sales tax, between the 31st and 60th days. GM expects that over the initial 30 days, most customers will be satisfied and hold on to their purchase. Those customers who are confident in their vehicle choice could elect to not participate in the program and receive a $500 cash incentive instead.
 
GM ran a similar program before in the 1990s with both Saturn and Vauxhall, its British division. The corporation expects just 2-3 percent of the vehicles will be returned. Those that do make their way back to dealership lots will become the epitome of nearly-new used cars.
 
May the best car win
GM is looking to make a bold statement, though this one may be over reaching. Consumer Reports recommends just eight Buick, Cadillac, Chevrolet, and GMC products out of 45. (See our list of recommended cars.) While the most recent GM vehicles have generally performed well in our tests, and several we haven’t completed testing show promise, not one tops its class for overall test score. However, the Chevrolet Avalanche was named a 2009 Top Pick, edging out the higher-scoring Honda Ridgeline, for its combination of comfort, versatility, and rugged capability.
 
In many cases, the new GM vehicles may be decidedly better than the older model being traded-in, offering more performance, fuel economy, and safety features. However, the only way to truly know if they are best for you is to do your research, including conducting your own test drives in prime competitors. Worst case, the time spent will reaffirm your decision. (Read: "What’s coming from the new Detroit.")
  
The small print
There doesn’t seem to be a real “gotcha” with this program, though there are some details worth reading before visiting the dealer. A few items to note:
 

• The program applies only to retail customers, not to business, corporate, or fleet sales.
• Lease vehicles are not eligible.
• To be eligible for return, the vehicle must have less than 4,000 mile and less than $200 in damage.
• The first payment must be made.
• The vehicle must not have been in an accident.
• The title, insurance, and registrations costs will not be reimbursed.
• The original trade-in will not be returned.

Bottom line
Despite the name, the 60-day satisfaction guarantee program looks to give consumers added incentive to buy a GM vehicle. With our recent Auto Pulse Survey showing that 81 percent of new car shoppers looking to “buy American,” this program may lure more customers away from Chrysler and Ford dealerships.
 
But as always, do your research. ConsumerReports.org has a quick-and-easy new car selector that allows online subscribers to quickly sort and filter ratings and data to identify the cars that best meet your needs and budget. We also have eight special areas dedicated to each car type, such as sedans and SUVs, with targeted buying advice and vehicle recommendations.

And finally, as with any incentive plan, don’t let the excitement overshadow the need to negotiate a good purchase price as close to the Bottom Line Price as possible, accounting for dealer holdback, customer rebates, and hidden dealer incentives.

BTW: I wonder how many Corvettes will be driven for a thrilling month, then returned...

—Jeff Bartlett

Comments

[david]

I am thinking of getting a Corvette Z06 and returning it within 60 days. But then, I don't trust GM. There could be other little print or catch.

[Cale]

With approx 60% of GM owned by the US Treasury (in other words, you and me), people considering abusing the 60 day money back guarantee offer might ask themselves, "Just who am I scamming?"

[Billy_Carter]

I don't trust GM based on first hand experience. I bought a brand new car (TransAm with the LS-1 engine - similar to a Corvette engine) from them and noticed this brand new car used two quarts of oil after one week (500 miles). I immediately let them know and brought the car back. I asked for a replacement car as this car was obviously seriously flawed. There were no oil leaks, I showed them oil residue on the exhaust tips - it was blowing oil past the piston rings. After several additional trips back to the dealer and writing letters to GM, the GM representative called me and said if I paid an additional $3000, they would replace my car (or I can take a "crate" engine - no thanks). I told him I would file a Lemon Law case, which I did and won. At the Lemon Law hearing the New England Regional GM representative said it was normal for a car to use a quart of oil every couple hundred miles. The Lemon Law Arbitration panel found in my favor and forced GM to replace the car.

The GM representative lied to the panel and claimed I did not give GM enough "repair attempts", however my documentation proved otherwise the panel found I fulfilled my obligations under the program.

I lived with that car for a year and 15,000 miles (totally unacceptable) - had to run platinum plugs in three cylinders to avoid fowling (I'm mechanically inclined). GM had to also pay for the oil I used. The replacement car came to the dealer with a misaligned fender (they fixed it, but not perfectly) and this replacement car had three quality problems which were: rotors warped, rear power hatch release didn’t function properly and one rear window defroster wire was malfunctioning). GM also did not honor these items under warranty – I just fixed what I could myself and never went back to GM.

I pointed out early on to GM that this oil going out the exhaust is an environmental taboo - they didn't care. The quality of their products alone has lost me as a customer and their concern for the environment is extremely disappointing.

My question is: Why would anyone trust GM to take a car back within 60 days or value a longer warranty when GM skirts honoring the warranties they offer today/in the past?

[David]

I have owned three domestic cars. Never again. Ford and Chevy talk about higher fuel mileage and "quality" but neither of them mention the biggest key factor: reliability. A car that looks "cool" won't do you any good if it doesn't run. My advice: look to the "other" Big 3: Toyota, Honda or Subaru (even Nissan, as a distant 4th - they were better as Datsun). They are much more reliable than any domestic car could ever hope to be. It's your money. Don't mind paying mechanics more often? Then buy domestic - it will be in the shop (on average) more than the foreign models. Do your research and talk to people who own a vehicle that you want to buy. Some might not view it as an investment, but for many people it's the second biggest investment they will make (right behind buying a house).

[eric]

I hope the laid off Auto Workers here in the U.S. get a chance to make a bid for the jobs of the foreign car driving people. Keep an eye on who gets hired...they might be taking over your job.

[SJ_Jefferson]

I wouldn't trust any warranty guarantees based on personal experience because there is no oversight that the GM dealership is honorable. I purchased a certified used '06 Trailblazer and the following week discovered a crack in the bumper visible only by lifting the hatch back door. I showed my salesman, got a written estimate from the on-sight bodyshop and submitted it to the salesman who said he would give it to the General Manager. After 3 months of calling the salesman to get it fixed, the General Manager finally said "too bad" it's the chance you take when buying a used vehicle. Never mind the bumper should have been inspected with that 117-point inspection to get that Certified Used vehicle title. I complained to GM who looked into the matter. The bodyshop attendant, and salesman both said they never saw the cracked bumper even though I got the estimate in writing. And the General Manager said I came back to the dealership 3 months after purchase and that I must have damaged the bumper my self. My estimate is dated one week after purchase. With that level of integrity and attention to customer service I’ll never purchase another GM vehicle again.