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Driving Up The Deals; GM’s 60 Day Guarantee
November 20, 2009 - 3:46 PM | by: Ruth RavveA 60 day money back guarantee. Its not something you typically get with a new car, but General Motors is betting its new return policy will drive you to take a chance on a new Chevrolet, Buick, GMC, or Cadillac. "May the best car win" is the latest marketing tool by the Detroit automaker, as it tries to boost confidence in its brand and downshift critics who say its vehicles can't stand up to the competition. "We stand by our vehicles, and we want to make sure that the customer is happy with their new purchase" a GM service rep says. "We want to show customers that we have reinvented GM". Customers who buy a car during the promotion, can test drive it for up to 60 days. If they decide they don't like it, they can bring it back to the dealership for a full refund, minus any rebates, discounts or sales tax paid. There are some restrictions though. The car must be kept for 30 days before attempting the return, and then you've got another 30 days to do it. There can be no more than 4000 miles racked up on the odometer, and if you cause more than $200 damage to the car, you can't bring it back.
GM claims so far 222,000 customers have opted for the 60-day money back guarantee, in lieu of a $500 discount on the purchase. Most kept the cars they bought, but not everyone was happy. Close to 200 people have returned the cars. Disgruntled customers are apparently given exit interviews by one of the company's engineering staff, to find out why the customer wasn't satisfied. GM leaders call it the "best unfiltered feedback" they can get. If sales numbers are any indication, the promotion seems to be working. In October GM posted its first year-over-year monthly sales gain in 21 months. Its been a much-needed boost for dealerships. At Phillips Chevrolet in Frankfort, Illinois, sales last month we were up 76% over October of 2008. "I think the economy is on an uprise and the 60 day guarantee definitely helps us. I say keep it rolling, keep it rolling all next year" says sales manager Mike Maheras. The promotion got the attention of suburban Chicagoan Karen Boeck, who bought a Chevy Malibu, specifically because of the return policy. "I was unhappy with the previous car I bought and I figured that if I was not happy with this one after 60 days I certainly wouldn't be stuck with it like I was the last car and I had nothing to lose". While Boeck did have to bring in her brand new Chevy to get the airbag light fixed, it wasn't enough to make her want to shuck the whole thing. She's keeping the Malibu.
The promotion was supposed to end in November, but GM is extending it through the holidays, maybe with the hope that shoppers will want to put a shiny new GM vehicle under the Christmas tree.
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