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.
