General Motors is advertising its new 60-day money-back guarantee heavily this month, but reports out today say some dealers may be pulling out of the program.
Autoblog reports, "A group of General Motors dealers aren't fond of the company's new 60-day satisfaction guarantee. In fact, they dislike it so much that about 3.5 percent of the General dealers are opting out of the program."
There are conflicting claims about the number of dealers who have opted not to participate. The financial news website 24/7 Wall Street reports that "149 of the firm's 4,000 dealers" have elected not to offer the guarantee, but then says "other sources say that the number is much higher." Some dealers have elected not to participate because they "believe that they are running financial risks by taking cars back from customers. Whether this is true or not is hard to tell. Some dealers are worried that once they pay customers it may take time for them to get money from GM." Others, apparently, "believe that the marketing program is a sign of desperation," with some Cadillac dealers worrying that the offer "cheapens the brand."
GM may have simply done an incomplete job explaining the program to its own dealers. Automobile Magazine notes that the program "lets buyers decide between $500 cash or the option of a 60-day return policy." GM doesn't want dealers to advertise the $500 rebate offer, insisting that the money-back guarantee will help instill confidence in GM brands. But "it seems that some sales people are offering the $500 to sell the car, completely missing the point" of the promotion.
The money-back guarantee is actually a significant benefit for consumers. We advise car shoppers considering a GM product to ask their dealership directly whether they are participating in the program, and review the paperwork carefully to ensure that the guarantee is included in any sales contract before they sign. After all, if you live with your new Chevy Malibu for a month and decide it isn't right for you, you may be able to return it, get your money back, and buy something that meets your needs more closely - that's a significant benefit you won't find from another automaker.
If you're in the market for a new car, check out the U.S. News rankings of this year's best cars as well as this month's best car deals.
