Is the GM 60 day money back guarantee going to boost sales or create problems?

Jared Hamilton
As the details of the 60 day guarantee emerge, what are your reactions to the program? What happens to the sales persons commission? Will the factory just charge back the incentives? The cars that roll back will in many cases be titled, so they will they used cars when they come back into inventory. Will the OEM offer incentives on these used cars. I personally like the idea of a money back guarantee and think it could boost sales, however this could be a nightmare for the dealers if not executed properly. (deja vu w/cash for clunkers) What do you think?
Stanley Esposito
I guess it would be easy to knock this program. I would like to see people give GM cars a chance. At the dealership what do we do about the trade? Do we pay it off? Are we obligated to hold on to the trade for 60 days before we sell them? If the customer is out of equity? How about the salesman who comes in on the last day of the month to hit a bonus only to have it charged back 60 days later? As in everything time will tell.
Jared Hamilton
You've got a good attitude stan. At first glance I love the program from a sales perspective. We had a 7 day exchange and a 3 day money back guarantee at our store and I KNOW it closed many deals for us every single month. When they throw the weight of an OEM backing a 60 DAY program, this could be a HUGE success! I also like the fact that it is not a huge rebate to increase sales. Getting off of discount selling needs to happen so I applaud that. This could be the beginning of a great thing, but alas... i think they have royally screwed it up to begin with. I am shocked, and consider the program a monumental FAILURE from a communication perspective. In this world of instant communication it is suicide for GM to release such a program without spelling out the details to the dealer UP FRONT. The dealers should have known the details before they went to the press, or at least at the same time. Why are they creating a firestorm of legitimate questions from their dealers? Did they not think the dealers would question all the operational problems that need to be addressed by this program. Does GM think their "good will" would actually be enough for dealers to be excited and "just trust them" until the program details come out? How much good will does GM think they have with the dealers? They are a recently bankrupt company, who just slashed their dealers, tried to force a horrible new franchise agreement with the remaining dealers and are saying they are cutting dealer margins to float this program. Put that on top of the Cash for clunkers program where the Govt said, "we will boost car sales and with this CFC program... details to follow" and then had the administrative nightmare, how could dealers not be apprehensive? To me they are blowing a wonderful opportunity. This program should be great. Clearly the marketing folks at GM dont understand the social web and the fact that the negative questions they have left unanswered could kill the program before it lifts off. I hope GM "comes to" and outlines the details, keeps it simple for dealers to process the returns and keeps the liability on themselves. Dealers dont need anymore liabilities today. Is this just an example of an OEM being incredibly out of touch?
Paul Rushing
The are offering consumers and additional $500 rebate if they opt out. The GM stores that I work with are saying most consumers are taking the rebate. From what I understand dealers are having to cover around 67% of invoice and book the car back in as used.

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