Fewer Than 200 Have Returned GM's Guaranteed Cars

GM’s 60-Day Satisfaction Guarantee program has proven to be a confidence booster for the company. Today, GM announced that fewer than 200 buyers out of 222,000 who purchased a new GM car have returned them unsatisfied. However, that’s out of 658 who took the guarantee offer over $500 in cash back. That’s a 33% return rate.

These returns don’t cost the buyer the full price of the car, but they are out taxes, fees and two car payments. This means those who returned cars were very unsatisfied and skeptical to begin with. GM says it is being proactive about the returns; they're following up with each customer and conducting high-level interviews with engineering staff to find out what the customers didn’t like. A few of the purchasers returned the cars for other models or trim levels, but many just didn’t like the cars or trucks.

2009 Cash-Back Deals You Can Still Find

As the 2010 models push out nearly all of the old 2009s on dealer lots, a lot of buyers become annoyed by valid, advertised cash-back offers on 2009 cars that basically aren’t available anymore.

We tracked down some interesting offers on 2009s that are:
a.)    Cars we wouldn’t mind buying
b.)    Have a significant cash-back offer
c.)    Readily available, according to Cars.com’s new-car inventory

Check out our list below. And if you want to search our inventory scroll to the end of the post for handy links for each model.

GM Extends 60-Day Guarantee

While it appears very few new GM buyers are opting for its new 60-Day Satisfaction Guarantee, GM is extending the program through the end of 2009 and slightly beyond, ending Jan. 4. Buyers can opt for the guarantee which allows them to return a new vehicle after 30 days but before 60 — with restrictions — if the buyer isn’t happy with it. Recent reports have the take rate of the program at 10% of new car sales; the other 90% are opting instead for a $500 cash back rebate. Only a handful of the 10% have actually returned a car.
 
We’ve already wondered if this counts as a “success” but since the program doesn’t seem to cost GM much, the publicity and marketing value is likely making up for any loss. That’s why GM will continue touting its “May the Best Car Win” slogan in print, online and TV advertising through December. 

Consumer Reports' Top 10 Automakers

Today, Consumer Reports released the results of its annual car reliability survey, which includes more than 1.4 million vehicles. This is one of the most important publications of the year for consumers interested in a car’s reliability. There were few surprises in terms of which makes are most and least reliable, with Scion maintaining the top spot. Porsche, Saab, Suzuki and Pontiac saw the biggest gains while Lincoln and Mini took the biggest hits. Check out Consumer Reports full report if you’re a subscriber. We list the top 10 most and least reliable automakers below.

$15,000 Off a Mercedes SL and Other Deals

Incentives haven’t been big news since the Cash for Clunkers program wiped out a large chunk of dealers’ inventory nationwide. That doesn’t mean all automakers have stopped offering incentives — even large ones — this month. Before the Halloween sugar rush fades, you’ll be able to find some huge cash-back deals, especially at Mercedes-Benz.

• 2009 Mercedes-Benz SL-Class: $15,000
• 2009 Mercedes-Benz CLS-Class: $10,000
• 2010 Cadillac STS: $7,400
• 2010 Land Rover Range Rover: $6,000
• 2010 Mazda RX-8: $5,000
• 2010 Nissan Titan: $5,000
• 2009 Nissan Titan: $5,000

You can find more deals on our incentives page. All incentives above end Nov. 2.

2009|Mercedes-Benz|SL-Class

2009|Mercedes-Benz|CLS-Class

2010|Cadillac|STS

2010|Mazda|RX-8

2009|Nissan|Titan

2010|Nissan|Titan

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. 

Luxury Car Sales Rebound in September

Do you ever watch the business news and wonder who’s making money in the stock market when most people you know are cutting back? Inexplicably, luxury automakers saw sales bounce back in September.

While sales of Toyota were down 19% in September, Lexus saw sales go up 7%; that’s mostly because of the new RX crossover, which had an uptick of 70%.

Ford sales were down 6%, but sales at its Swedish Volvo brand were up 16%, thanks largely to the new XC60 crossover.

With relatively no new models in its lineup, BMW sales were up 3%.

Even at GM where sales were down 45%, Cadillac sales were down just 8% because of swift sales of the redesigned SRX crossover.

2010 Chevy Equinox, Cadillac SRX, GMC Terrain Named Top Safety Picks

The redesigned 2010 Chevy Equinox is off to a fast start, selling more than 13,000 units last month. Good news for those new owners, the crossover earned the Insurance Institute for Highway Safety’s Top Safety Pick award. To receive the nod, a vehicle must earn a top score of Good in front, side and rear crash tests; it also must be equipped with stability control.

The 2010 Cadillac SRX and the new 2010 GMC Terrain crossovers also earned Top Safety Pick status.

In November, the IIHS will start including roof strength tests into their award program, which will make it much harder for vehicles to get a Top Safety Pick designation.

GM Offering 60-Day Money-Back Guarantee

We’ve seen a lot of bizarre sales tactics over the past few years, but the new GM is going somewhere none have tread before. Starting Sunday, the company will offer a 60-day, no-questions-asked, money-back guarantee on all new Buick, Cadillac, Chevy and GMC vehicles.

One television ad that will begin airing Sunday during NFL games will feature new GM Chairman Ed Whitacre, formerly AT&T CEO who was appointed to the GM post by the government. It seems he needed to be convinced about GM products, too, and thinks the offer will resonate with reluctant shoppers.

The program will run through November and does have a number of conditions, as you’d expect. We list a few of them below. More information will be posted on this GM site on Sunday.

GM Previews Small, Sporty Cadillac

Now that GM has reduced the number of brands in its stable, the remaining divisions are getting fuller product lineups. For Cadillac, this means it's finally getting a small car positioned below the current CTS, which is aimed at younger drivers looking for thrills, not high-blood-pressure pills. The so-called ATS will compete head-to-head with the likes of the Mercedes C-Class and BMW 3 Series.

On Tuesday, Cadillac's new boss, Brian Nesbitt, previewed a stylish two-door coupe version for journalists at GM's Tech Center in Warren, Mich. The 40-year-old started his career as a designer and is perhaps best known for penning the shape of the Chrysler PT Cruiser before he arrived at GM.

"I'm excited about this small, premium Cadillac," Nesbitt said. "The emphasis will be giving drivers an enthusiastic driving experience. It's going to have a rigid chassis, rear-wheel and all-wheel drive, a longitudinally mounted small-displacement boosted engine, and it will be lots of fun to drive. There will also be a six-speed manual transmission."

The ATS' design looks like a sleeker version of the CTS, with a similar roofline and aggressive headlights that stretch back over the top of the fenders and tall vertical lamps in back. Only the exterior was shown.

"The coupe won't be the only version," Nesbitt said. "This will be a family of vehicles, including a sedan."

When will it arrive? Nesbitt didn't say exactly, but we expect to see it within about two years.