Few Taking GM Up On Buyback Offer

GM’s latest marketing blitz has been centered around the improving quality of its new models. Its 60-Day Satisfaction Guarantee promotion allows buyers to return their cars within 60 days if they’re not happy with it; if they return their car, they’re only out for the two months of payments and all taxes and fees. No matter the brand, it’s easy to have regrets about a new purchase, so it seemed like a good idea to bring in buyers wary of the GM brand after its rocky few years.

GM is saying the program is a success. Launched on Sept. 13, we are just three or so days into the timeframe when buyers can return vehicles under the program; they must own it for at least a month.

GM says less than 10 buyers have returned cars under the program. According to vocal GM executive Bob Lutz, one of them decided on another GM car — swapping a manual Corvette for an automatic.

Most new GM buyers — 90% — are opting out of the return program entirely in lieu of $500 cash back. That leaves 10% of customers who are the intended target of the promotion. Is that a success? We don’t have concrete numbers on how many cars were sold under the program since it started mid-month, but in September GM sold 156,673 vehicles. That’s a good guideline to go with to reference the past 30 days; 10% of September’s sales is 15,667, and 10 people out of that number is 0.06%. Is that a good or bad number?

It’s hard to say. Many in the industry would consider 10% an impressive figure for new — or conquest — customers, especially for a company like GM and its baggage. Others may just call the whole thing an elaborate marketing and PR exercise. You can weigh in below. 

Comments

You don't buy anything big without doing your homework. Yes, we always "could have made another choice", but the accounting required for plans like this probably made it impossible for any amount of people to take advantage of this.
GM can't afford to play games. Their vehicles have improved in quality (see the Malibu for a great example). This is what will truly make the sales.

The buyer is out taxes and fees if they return the car. Even if the purchase price of the car were only $20,000 that means a loss of $2,000 or more if returned (at least with the Chicago tax rate).

Peter,
Yes, but I would consider the $2,000 loss worth it if the car was a dog. I agree though it makes more sense the more expensive the car is.

Quality improved, but amenities are still in short supply.

A dog wont show its true colors for a while.GM is limiting the time enough to hide any lingering flaws.Lets see 6-12 months later if they are spotless and trouble free.

I need to see a longer track record of quality before I consider a GM vehicle. Even a crappy sports team gets lucky wins a game every now and then. Is GM simply "lucky" with a couple of shining star models? Sorry... I can't see a company who has had decades of quality problems do a 180 degree turn around in the time span of a bail out and bankruptcy.

I agree with Troy S. yes GM has a few good models such as the ford Edge, Ford Fusion and the improved Mustang but they have years to go as far as I'm concerned to even think about competing with Honda and Toyota and to convince the driver in this poor economy to waste his money on car repairs when it can be used for groceries or the electric/gas bills.

sap,

Please, wake up.
GM does not make the Edge, Fusion nor the Mustang. It is another company across the town that makes them.

Take the $500 rebate, forget about the return policy and get on with your life. I am starting to question the intelligence of people still harboring anti-American car sentiments. Look at http://www.jdpower.com/corporate/news/releases/pressrelease.aspx?ID=2009043 and tell me what's so bad about an American car? While not top of the list, Chevrolet is turning in better dependability ratings than; Mitsubishi, Volvo, Nissan, Mini, Kia, Saab, Mazda, VW and Land Rover. What else do they have to do?

Dave Thomas posted, "...I would consider the $2,000 loss worth it if the car was a dog." Taking a 10% loss on a car within 60 days is worth it!? You must live on Planet Stupid. If the car "was a dog" it should be addressed under the state's lemon law instead of incurring a 10% loss.

GM's biggest obstacle CURRENTLY is the perceived lack of stability of the company NOT the quality of the cars. Cadillac in particular the last few years has come out with some wonderful cars but is GM stable enough to make good on warranty issues for the next 3-5 years???? Apparently most people have doubts and this new BUYBACK program does absolutely NOTHING to alleviate those concerns. GM needs to effectively convey the message that YOU will be taken care of if you buy a GM product. GM's problem is a public relations one which I beleive is fixable with some new forward thinking but the problem with THAT is forward thinkers have NEVER been allowed in GM's work culture.

Elaborate PR.