General Motors extension of its 60 day vehicle return policy is a real opportunity for many bad credit car loan customers
Program extension
At Auto Net Financial we realize that most bad credit car loan customers end up purchasing a used car, in part due to the affordability factor. But that being said, the fact that the 60-day satisfaction guarantee program from General Motors offers buyers (including those with bad credit) the ability to determine if the vehicle fits their lifestyle and their budget can certainly be seen as a game changer. The only issue for customers was that the program was set to expire at the end of November.
But we’re happy to report that General Motors recently announced that it will be extending its 60 day money-back guarantee on most GM vehicles (neither the Saturn nor the Pontiac division are included).
“Maximum” Bob
The original program commenced in September. According to a blog article written by Bob Lutz just before the program began and entitled “May the Best Car Win”, he wrote that “We will be highlighting our quality, design, performance, road manners, fuel efficiency, 100,000-mile/5-year warranty, and our new 60-day satisfaction guarantee. We will directly compare our attributes to the competition and “may the best car win.”
“In short,” Lutz continued, “we’re going to take away every last excuse not to consider a vehicle from Cadillac, Chevrolet, Buick and GMC. We have confidence in our products. This campaign is designed to encourage the consumer to share in that confidence.”
From all appearances, the return policy program has succeeded. According to a recent Automotive News article, “”Since the program began, GM has sold about 142,000 new vehicles.” Of those transactions, only 449 customers elected to participate in the return program. The rest chose the alternative of a $500 cash-back rebate. To date, 4 vehicles have been returned under the program, with Automotive News reporting that another “49 people have filed paperwork to return their vehicles but have not yet done so.”
Program advantages
The program enables customers to effectively “test drive” a new car for up to 60 days to determine if it really fulfills their transportation needs – both in terms of utility and performance. Customers also have the choice of a $500 dollar rebate as an alternative to participating in the return program.
For bad credit car loan buyers, the “Satisfaction Guarantee” program gives them nearly two months to decide not only if the vehicle fits their transportation needs, but also if the vehicle they’ve chosen also fits into their budget in terms of monthly payment as well as the accompanying insurance and fuel costs. If bad credit customers have already determined that the car will work, they can take advantage of the extra $500 rebate and put it towards the down payment, which will lower the monthly payment as well as reduce interest expenses.
Qualifying vehicles
The program will continue to cover new 2009 and 2010 model Buicks, Chevrolets, Cadillacs and GMCs. As was the case when the program began, customers who choose to participate will be allowed to return their vehicles from 31 to 60 days after delivery with a maximum of 4,000 miles on the odometer.
The program is not available for leased vehicles and the new extension means that the program will be in effect through January 4th of 2010.
As we see it
The decision by General Motor’s to extend its “60-day Satisfaction Guarantee” program gives bad credit car loan buyers additional time to both “test drive” a car and decide whether or not they have chosen the correct vehicle for their budget –a big advantage over normal buying conditions. At Auto Net Financial, we also believe that extending the program through the 4th of January, to include December, a month that is notorious for being slow in the retail auto industry, might also drum up extra traffic for GM dealers.
So if you do have bad credit and you’re thinking of reestablishing your credit with a bad credit car loan, or for more information on bad credit auto loans as well as the bad credit auto loan buying process, visit our web site at www.autonetfinancial.com.
