GM’s 60-Day Money-Back Guarantee

Filed under: temp   Monday, September 14th, 2009

General Motors wants your trust back. Battered by its foray into bankruptcy, the company knows the car buying public isn’t completely confident in GM today. So the automaker is offering a new reassurance to car shoppers: the auto industry’s first-ever 60-day money-back guarantee.

The New York Times reports, “In an all-out effort to restore confidence in its products, General Motors will offer a 60-day, money-back guarantee on all its vehicles.”

The Times is not strictly correct when it says the program applies to all GM vehicles. Autoblog notes, “The new initiative will cover new Chevrolet, Cadillac, Buick and GMC models.” Cars built by Pontiac, Hummer, Saab and Saturn – all brands GM seeks to sell or shut down this year – are not covered.

The Times reports, “The ‘Satisfaction Guaranteed’ program is thought to be the first time that a major automaker has offered a full refund on a vehicle after it has been sold.”

The initiative amounts to an extended test-drive offer. GM Vice President Bob Lutz told USA Today that the company is aware that some customers may choose to return their GM car and buy a competitor instead after the extended evaluation. “If you do the comparison and a Toyota Camry meets your needs better than a Chevrolet Malibu, hey, help yourself,” Lutz said. Still, the automaker doesn’t expect many takers — when GM’s British division, Vauxhall, made a similar offer several years ago, “only 2% to 3% of buyers brought vehicles back for refunds,” a figure that is “about what he expects for the U.S. program.”

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