General Motors is battling an image problem. As seen in the results from our recent nationwide
Auto Pulse Survey, new car buyers are l
ess 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 winGM 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 printThere 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 lineDespite 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
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