autoMedia Auto News Blog : Incentives

Less Than 200 Customers Want Money Back From GM

admin — Mon, 23 Nov 2009 02:29:00 GMT

When General Motors first introduced its 60-day Money Back Guarantee, it seemed a bold attempt to assure buyers that its products will satisfy. It also raise the question of how many buyers would choose to participate in the program, and then return a vehicle. On October 15th, we reported that a single return had been made. Just more than a month later, GM reports that 200 of 222,000 customers have opted to pursue a vehicle return. That sounds like a small percentage, though only 653 customers chose the 60-day offer over a $500 rebate. GM says that many other car shoppers were persuaded to purchase a Buick, Cadillac, Chevrolet, or GMC vehicle because of the confidence given by the program. Thus far 53 vehicles have been returned, and about 140 others are going through the process. Each dissatisfied customer is going through an exit interview with Vice President of Global Product Engineering Mark Reuss and/or his staff. Through this significant effort, GM is certain to learn about the specific reasons that people are willing to walk away from a car. Ultimately, GM has fueled sales and molded public perception—both essential wins as the automaker seeks to remake itself....(read more)

GM Reports Only One Return Against 60-Day Promise

Editor — Fri, 16 Oct 2009 05:48:00 GMT

General Motors happily reports that since launching their 60-day love-it-or-return-it guarantee, only one buyer from 150,000 new-vehicle purchases has returned their new GM car, and actually he exchanged it for the same car but with a different transmission. “Out of hundreds of thousands, the people who've selected the 60-day guarantee were in the hundreds,” GM's marketing chief Bob Lutz said during a press conference Wednesday. “We have had one substantiated return of a vehicle.” Actually, of the 150,000 vehicles sold since the sales campaign debuted, only 100 people have opted for the 60-day return offer. The rest of the buyers each chose to take $500 cash. That's $74,900 in sales incentive "costs" the the automaker ... about the value of one nice Vette or a CTS-V ... and an indicator that a lot of people love cash and/or have faith they'll be happy with their new GM purchase decision 60 days down the road. ~ Deborah Neal, Editorial Director, autoMedia.com...(read more)

GM Joins Ford with Fall Truck Sale Campaign

Editor — Thu, 24 Sep 2009 18:49:00 GMT

Maybe it was a marketing ploy, or maybe GM's marketing chief Bob Lutz had a change of heart. After announcing that GM would not be holding the fall season truck sale in order to focus on their new "May the Best Car Win" campaign, Lutz has decided to hold a fall truck sale after all, starting tomorrow, September 25th. So what is GM said to be offering you on Chevrolet and GMC trucks? According to a report today in Automotive News:

$1000 cash on many GMC 2010 trucks, crossovers and SUVs, including Buick Enclave
$500 cash on 2009 and 2010 GMC Canyon pickup trucks
Zero percent financing for 60 months on all Chevrolet Silverado and Colorado trucks, plus the 2010 Chevrolet Malibu sedan
$1500 cash on 2010 Chevrolet Malibu models
$1000 on 2010 Chevrolet Impala sedans, Traverse crossovers, Tahoe and Suburban SUVs, and Silverado and Avalanche trucks

The caveat right now, according to some Chevrolet and GMC dealers, is that they currently do not have a lot of 2010 models in stock. The fall sale ends November 2, 2009. Ford's fall truck sale opened September 10 and ends October 5, 2009, with incentives as much as $4500 on F-150 model line trucks and $5000 on F-Series Super Duty haulers.

Research 2009 Chevrolet, GMC, and Ford models in our 2009 New Car Buyer's Guide.

~ Deborah Neal, Editorial Director, autoMedia.com

GM Bets on Consumer Confidence with Money-Back Guarantee

Brandy Schaffels — Thu, 10 Sep 2009 23:43:00 GMT

As another step towards boosting consumer confidence in the brands, General Motors will now offer a Satisfaction Guarantee to eligible buyers of new Chevrolet, Buick, GMC and Cadillac vehicles which allows customers to return their vehicle between 31 and 60 days of purchase and receive a refund of the purchase price for the vehicle.

The new Satisfaction Guarantee is in addition to GM's existing warranty coverage, which includes a transferable 100,000-mile/five-year (whichever comes first) limited powertrain warranty, roadside assistance, and courtesy transportation.

The warranty is part of GM's larger "May the Best Car Win" marketing campaign that demonstrates the manufacturer's confidence in its vehicles when compared head-to-head with the most competitive vehicles in each vehicle segment. The moneyback guarantee will be offered between September 14 and November 30, 2009.

"We're putting our money down that if people buy one of our vehicles and don't absolutely love it, we'll take it back. We will stand behind them both in the short-term and over the long haul," said Bob Lutz, GM vice chairman, Marketing and Communications.

It's clear here that the biggest goal is to get buyers into dealerships to take a look at the improved quality of the entire product lineup, instead of dismissing them in favor of import competitors, believing them to be better. "The Cadillac SRX and CTS Wagon, the Buick LaCrosse, the Chevrolet Equinox and GMC Terrain, for instance, are all outstanding new products," said Lutz. "We think if consumers give us a fair chance and look at the facts on the things that matter most to them, like design, fuel economy, warranty and safety, our vehicles are the best choices - that's what makes an offer like this possible," said Lutz.

The Satisfaction Guarantee covers the vehicle purchase price and sales tax on 2009 and 2010 Model Year Chevys, Buicks, GMCs and Cadillacs (except medium duty trucks). It excludes other add-ons like accessories, negative equity on a trade-in, or other fees; other restrictions apply, and leased vehicles are not included. If they're not happy with their purchase, customers (only one per household) can return their vehicle between 31 and 60 days as long as their payments are current and the vehicles have been driven less than 4000 miles.

"We know that we'll need to work very hard to get people's attention and encourage them to give Chevy, Buick, Cadillac and GMC a try," said Lutz. "We think the 'May the Best Car Win' campaign and the Satisfaction Guarantee offer should help re-instill confidence in the excellence of our products."

GM is betting big on that goal, but has taken out insurance against losses, which could equal thousands of dollars on each returned car. "I think we can now say our current lineup can bear comparison with any other volume automakers' products anywhere in the world," Lutz said, in an article at CNN Money.

Additional information will be available beginning Monday, September 14, when the following informative websites -- www.Chevy.com/guarantee, www.Buick.com/guarantee, www.Cadillac.com/guarantee, and GMC.com/guarantee -- come online.

Interested in finding out more about these brands before you go shopping? Then browse our Chevy, Buick, Cadillac, and GMC vehicle reviews here at the autoMedia.com Buyer's Guide.

By Brandy Schaffels, autoMedia.com contributing editor

autoMedia CARnival 9-4-09: This week in the auto blogs

Brandy Schaffels — Fri, 04 Sep 2009 10:44:00 GMT

It's the week ending September 4, and we've browsed our favorite automotive blogs all week long to gather a collection of what we feel is the highlight from each. Cash for Clunkers and Papa John's Camaro remain in the headlines for another week, and David E. Davis says he wishes Jean Jennings was dead, but besides all that, we've also got plenty of other unusual news sure to delight the automotive fan.

Cash for Clunkers rebates undoubtedly fueled robust August car sales, with manufacturers showing increased sales over the same time period a year ago, and even better increases over their sales just one or two months ago. Motor Trend's Todd Lassa shares an astute analysis of these figures, with detailed insights into the best-selling models and manufacturers.

Classic Car Examiner Jim Cherry knows cars have had a long and colorful history on TV from the 1966 Batmobile, to Entourage's Maserati Quatroporte, to Starsky & Hutch's Grand Torino. Knight Rider's Kitt car was so popular that Hasselhoff's series was revived years later in the vain hope of selling more lunchboxes. The right car makes the right statement on TV. They hop things up, express characters' characters, provide dramatic action and provide plenty of merchandising oppoutunities. Check out his slideshow of the top nine classic TV cars at examiner.com

AutoBlog files this under "No Cool, Wacky Deed Shall Go Unlitigated." John Schnatter, Papa John of Papa John's Pizza, put out a $250,000 A.P.B. to find his long lost 1971 1/2 Camaro Z28. Papa John Schnatter says the money was for the person whose name was on the title of the car as a reward for selling the car back to him. When the Sloanes of Indiana helped point Schnatter to Jeff Robinson, the current owner, Schnatter offered them $25,000 for the assist. Now the Sloanes aren't happy about "only" getting $25,000 and want a bigger piece of the pie. More details can be found at this local Kentucky news website. Naughty, greedy people get no sympathy from me. Take your finder's fee and quitchurbitchin...

The Detroit Bureau asks if U.S. buyers are ready to return to Motown and buy American for their transportation needs? According to Paul Eisenstein, that's the rather surprising indication of a new survey by the Consumer Reports National Research Center. This first-ever survey of motorist intentions found that about 80% of new-car buyers said they would be likely or very likely consider a Detroit product, compared with just 47% who said the same thing about an Asian model, and 46% who'd similarly consider a European offering. The CR survey results show good news for the American automakers, as most respondents said the most important consideration in deciding which vehicle to buy is price, followed by fuel economy, safety, and quality.

It's difficult to find the words to describe the highlight of this segment of "Autoline After Hours" being served at TheTruthAboutCars. Let the headline be your guide: "David E. Davis: Fired for Truth Telling, Wants Jean Jennings Dead." Fast forward 15 minutes in, when David-E wishes a piano would land on her head. Yeah: He says that.

In one article, AutoBlogGreen says Audi of America President Johan de Nysschen, says the Chevy Volt is "a car for idiots," and says pure electric vehicles are "for the intellectual elite who want to show what enlightened souls they are." In another article he denies using those words. Well, of course, he has to, especially now that Audi is revealing an all-electric R8 concept car at the upcoming Frankfurt Motor Show. Harrumph.

Honda fans across the internet unleashed "Haterade" on first official Crosstour photos released at Facebook: Honda responds by blaming it on insufficient photography and promises additional photos will come soon. Jalopnik says "We're sorry, but if your vehicle is ugly from 3/4 front and 3/4 back it's just ugly and we doubt more detail is going to change that."

If you've heard the accusations that the rare metals required for production of hybrid car motors and batteries are in short supply and that the mining of such metals is disastrous for the environment, then you'll want to read this report at HybridCars.com which declares such concerns are overblown. In fact, the article states that if domestic and other Canada-based mining concerns go back into production at currently dormant mines, hybrid and electric car production will "not only be on track, it could be done in the United States," within three to four years.

Thanks for joining us for this week's autoMedia.com CARnival! Have you got something of interest you want us to include in a future carnival? Then fill out our online form so we can be notified of your interesting entry to our weekly blog CAR-nival. Check back next week for another installment--until then, have a great weekend!

Brandy Schaffels, autoMedia.com Contributing Editor

CARS Program Declared 'Wildly Successful'

Brandy Schaffels — Thu, 27 Aug 2009 12:00:00 GMT

Barely a month after The Car Allowance Rebate System (CARS) program was first enacted, the second leg of the pivotal program also known as "cash for clunkers," wrapped up boasting nearly 700,000 car sales and improved fuel efficiency.

In a statement released by U.S. Department of Transportation, Transportation Secretary Ray LaHood declared the program "wildly successful" citing not just the number of vehicles sold, but also good news for the environment. The average fuel economy of the vehicles traded in was 15.8 miles per gallon and the average fuel economy of vehicles purchased was 24.9 mpg - a 58 percent improvement helped by the fact that 84 percent of consumers traded in trucks and 59 percent purchased passenger cars.

According to the report released today, cars purchased under the program were, on average, 19% above the average fuel economy of all new cars currently available, and 59% above the average fuel economy of cars that were traded in. This means the program raised the average fuel economy of the fleet, while getting the dirtiest and most polluting vehicles off the road.

All in all, it appears the program has served its purpose, as according to a preliminary analysis by the White House Council of Economic Advisers, the CARS program will:

Boost economic growth in the third quarter of 2009 by 0.3-0.4 percentage points at an annual rate thanks to increased auto sales in July and August.
Will sustain the increase in GDP in the fourth quarter because of increased auto production to replace depleted inventories.
Will create or save 42,000 jobs in the second half of 2009. Those jobs are expected to remain well after the program's close.

"This is a win for the economy, a win for the environment and a win for American consumers," said Secretary LaHood. The dollar value of the 690,114 vehicle transactions presents a total dollar value of $2,877.9 million! Broken down, the ten states to benefit the most from these purchases are (based on dealer voucher requests):

California..............$326,822,000
Texas....................$183,776,500
New York .............$156,292,000
Florida..................$146,565,000
Illinois...................$143,613,000
Pennsylvania........$138,651,500
Ohio .....................$136,267,000
Michigan...............$132,407,500
New Jersey...........$103,375,500
Virginia.................$98,523,500

After the stampede of sales ends, the Department of Transportation is now augmenting a 2000-person team to process dealer rebate applications.

See our previous reports on "Top 10 Trade-Ins and Purchases" and "What Automaker Sold the Most Cars?"

Learn even more from "Cashing in on Clunkers."

By Brandy Schaffels, autoMedia.com contributing editor

Ready to Go Car Shopping? Obama signs Car Allowance Rebate System into Law

Brandy Schaffels — Thu, 25 Jun 2009 12:18:00 GMT

Today President Obama signed into law a new program being called "Car Allowance Rebate System" (CARS); we've previously been referring to it as "Cash for Clunkers." This government program is intended to help consumers purchase a new, more fuel-efficient vehicle when they trade in a less fuel-efficient vehicle. Official information is available here at www.cars.gov.

The new CARS law allows consumers to receive up to a $4,500 credit when trading in their old gas guzzler for a more fuel-efficient new vehicle. Qualifying vehicles are considered passenger cars, mini vans, SUVs and small light-duty trucks that get less than 18 mpg, and large light-duty trucks that get less than 15 mpg city/highway combined. For passenger cars, if the new vehicle is at least four mpg more fuel-efficient than the old vehicle, consumers will receive a $3,500 credit toward a new vehicle. If the new vehicle is at least 10 mpg more fuel-efficient than the old vehicle, the credit is good for $4,500.

If you're not sure whether your car qualifies, you can find out how your car is rated by searching at fueleconomy.gov (I was disappointed to discover that my 1989 Honda Accord does not qualify for a voucher because it is too fuel efficient, though I'm sure my car is relieved that it is neither a gas-guzzler, nor a clunker.) Once you locate your vehicle, the magic "combined fuel economy figure" is displayed in red. This number is based on 45% highway economy plus 55% city economy and DOES reflect the new ratings method the EPA implemented in 2008 to reflect faster driving habits, air conditioner use, and cooler outside temperatures. If you're handy with a calculator, the formula looks like this: (City x .55) + (Hwy x .45) = the magic number.

The National Highway Transportation and Safety Association (NHTSA) is expecting implementation within in 30 days. The law requires dealers to be registered before they can participate in the program, so shoppers may want to contact their local dealer in mid-July to see if they are ready to utilize the program.

Important things you must know:

Even though discussions up to now have discussed vouchers, you do not need a voucher: Dealers will apply a credit at purchase.
Your vehicle must be less than 25 years old on the trade-in date.
The credits only apply toward the purchase or lease of new vehicles and you may trade in or buy a domestic or a foreign vehicle.
The vehicle being traded in must get fewer than 18 MPG (though some very large pick-up trucks and cargo vans have different requirements).
Vehicles being traded in must have been registered and continuously insured for the full year preceding the trade-in, and be in driveable condition.
This is not a retroactive program: if you recently traded in an old car for a new vehicle, you're out of luck.

Ready to go shopping? Do your research first here at our online New Car Buyer's Guide

By Brandy Schaffels, autoMedia.com Contributing Editor

Ford Fights Breast Cancer by Donating $20 per Test Drive to Komen for the Cure

Brandy Schaffels — Wed, 13 May 2009 18:06:00 GMT

Behind every enthusiastic car guy is an entire collection of enthusiastic car gals; whether they are moms or aunts, sisters or cousins, girlfriends or wives, we know you love 'em and want to keep them healthy and safe.

Ford Motor Company is proud of its 15-year National Sponsorship of the Komen Race for the Cure, and over the years has dedicated more than $100 million to the Susan G. Komen for the Cure fight against breast cancer. This year, Ford is contributing $20 to the Susan G. Komen for the Cure fund in the name of each prospective customer that test drives a Ford, Lincoln, or Mercury vehicle through June 1.

Customers interested in a taking test drive can join in and participate by logging on to www.fordcares.com to get a registration form and number to provide to their dealer. Customers participating in any upcoming Komen Race for the Cure event through June 1st will receive a registration form and can also follow the same steps to have a $20 donation made on their behalf as well.

"This program will go a long way in helping Komen directly serve women and men in hundreds of communities across the country with education, screening and treatment programs that address breast cancer issues close to home," said Hala Moddelmog, President and CEO, Susan G. Komen for the Cure.

Ford has committed up to $1 million as part of this charitable initiative, which runs alongside Ford's Advantage Plan, intended to boost consumer confidence during this challenging environment by offering Ford customers a guaranteed 12 months of vehicle payments on any new Ford, Lincoln, or Mercury vehicle (up to $700 a month), if the customer loses his/her job.

If you want to take your support a little father while indulging your special woman's automotive interests, consider purchasing a 2009 Ford Mustang with a Special Warriors in Pink Package! $500 from the sale of each package also goes directly to Susan G. Komen for the Cure!

The Warriors in Pink Package includes a unique grille, pink ribbon and pony fender badges, pink ribbon rocker tape and hood striping, charcoal leather trimmed seats with pink stitching, aluminum-spoke steering wheel with pink stitching, and charcoal floor mats with pink ribbon and contrast stitching. The special edition package can be ordered on 2009 Ford Mustang coupe, convertible and all-new glass roof coupe models in Black, Brilliant Silver, or Performance White.

Brandy Schaffels, Contributing Editor

Chrysler Offers Big Incentives up to $6,000

admin — Thu, 07 May 2009 02:03:00 GMT

Now that Chrysler has filled for Chapter 11 bankruptcy protection and is moving forward with an alliance with Fiat, its future seems more certain. Time to focus attention on selling cars--essential to keep the money flowing while it builds a new car company. To that end, Chrysler is now offering up to $4,000 Consumer Cash on 2009 model vehicles; $1,000 Owner Loyalty for current Chrysler LLC vehicle owners that is good towards most 2008 and 2009 Chrysler, Jeep, and Dodge vehicles; and up to $1,000 Credit Union Bonus Cash for qualified members who finance their new vehicle purchase through a participating Credit Union. These incentives are valid through June 1, 2009.

In addition, given that most dealers have bloated inventories, remember that there is additional negotiation room. The amount of haggling a dealer will do will likely decrease along with their inventory as plants idled during the Chrysler restructuring.

So, for those considering a Chrysler, this is a great time to buy. Especially if you’re looking for a memorable Mother’s Day gift.

Research Chrysler, Dodge, and Jeep in the new car buyer's guide.