Posted on 09/15/2009 5:58:23 AM PDT by wrrock
ALEXANDRIA, Va. — General Motors’ new 60-day money back guarantee campaign seems to offer something for everyone — except taxpayers, the 362,000-member National Taxpayers Union (NTU) pointed out today.
This Sunday, General Motors launched a new marketing campaign, ‘May the Best Car Win,’ and will offer car buyers a 60-day money-back guarantee. It was broadcasted on nearly every Sunday football game.
(Excerpt) Read more at cardealerreviews.org ...
“Money-Back Guarantee Funded by Tax Dollars”
Well, duh! Tell us something we don’t know.
Not only is the “guarantee” fueled with our dollars, but the AD campaign ain’t coming from their “profits”! BOHICA!
Ford should issue a bonus to any employee who buys and then returns a GM car within the 60 days, killing its resale value.
Will any of us be surprised if this turns into a total fiasco? Do you want to drive a car free for 60 days? Are you willing to sit down and go through the hassle necessary to make a phony purchase just to do so? How about the fun of doing it just for the fun of doing it? Is there any doubt that this stupid offer by Government Motors will bring out some crazies? You can count on it.
Based on “Cars for Clunkers”, is their a “Return” tax? Most people don’t realize that there was a 33% tax on Cash-For-Clunkers. A $4,500 federal benefit would ensure a $1,500 tax due by the benefactor.
The Cash for clunkers deal was not taxable for income tax purposes. It may be taxable for sales tax purposes - depending on the state.
The fine print isn’t terribly bad. Biggest problem seems to be that, if you traded in a car for your purchase, it’s gone. You can’t get the car back, and the money you get back for returning the new vehicle won’t include the “value” of the trade-in, since it is restricted to the “price” you paid plus sales tax.
I wonder if the government will play around with the rules so that GM could re-sell these vehicles as new, just as if they were showroom vehicles that had gone for test drives.
I hate that there are two car companies getting billions of my tax dollars, while a 3rd company is forced to compete against them without any help.
All those flashy new TV adds are also funded by us taxpayers, you can take that to the IRS fer sher!
Especially the one where the new “GM President” struts down a street and brags that he has never run a car company, but he is pleased beyond his wildest dreams at “what he sees”, at the direction the company is headed.
I will NEVER buy a GM product again. (Or Ford for that matter, because the UAW is in control of them and will eventually break them down. Not to mention that UAW made cars are clunker class crap.)
I would certainly get all facts and figures and full explanation in writing.
To me, the price I paid is the negotiated price of the vehicle before any other consideration, including a trade-in vehicle. If they don't give you the value of that trade back in your refund, and they keep your car, they have effectively stolen from you.
This Agreement does not apply to and will not provide payment if:
...
You return an Eligible Vehicle and repurchase a vehicle you traded-in when you purchased the Eligible Vehicle; On re-reading that, maybe my initial impression was wrong. IT seems to just be saying that if I return the new vehicle, I can't buy my trade-in back from them.
Which I took to mean they wouldn't GIVE it back to me either.
But I can't tell whether the term "Buyback price" includes the value of the trade-in. They define "buyback price:
Buyback Price means the actual price you paid to the Participating Dealer for the Eligible Vehicle itself (after any rebates, discounts, employee discounts, or supplier discounts) plus applicable sales taxes you actually paid.So if the trade-in counts as a "discount", it isn't counted. But if the trade-in is treated as a cash equivalent, then I guess it would be part of the price.
In which case, they will have essentially paid you for your old car, at whatever value they decided to assign it.
Your trade in is gone. No getting it back. If you buy it back it voids the 60 day guarantee.
Also, customers can accept a $500 check in lieu of the 60 day guarantee, so it’s really a scam.
People are going to take the $500 and not bother with the 60 day guarantee. That way, GM can be assured of few takers, which they can gloat about.
From the FAQ’s at the guarantee site:
Is there an alternative offer if the customer is not interested in the Satisfaction Guarantee program?
Yes. In lieu of the 60 day Satisfaction Guarantee, the customer can elect a $500 cash incentive at the time of vehicle purchase.
I thought about it some more. If you traded in your car, it means you probably need the new car now, because you probably didn’t have a spare car lying around.
And if you are making a major purchase, spending thousands of dollars, you will have done some serious work convincing yourself to make the purchase.
The time people change their minds is the first few days — but the guarantee requires you to keep the car for a month.
During that month, you will get used to the car, your fears might fade, it will be harder to return the car, especially knowing you’d have to buy something else anyway.
Not to mention that if you put a little as $200 worth of damage to the car, total, you won’t qualify. If someone scratches your car, it’s over. If you bump into a pole, if you spill something on the carpet, if there are water stains on the seats — you’ve lost your guarantee.
In fact, even a bad SMELL in the car can void the guarantee.
I can’t imagine anyone signing up for the guarantee when they can have $500 off the car instead.
Who is going to bother signing up for the 60 day guarantee when they can take a $500 incentive instead?
It will be taxable as a Federal benefit.
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