Don’t be Fooled by GM and Other Readings

October 24, 2009 by  
Filed under Blog

Chevrolet is so proud of its 60 day “bring it back if you don’t like it” policy. It’s president is now bragging that only one car has been returned under the policy. I’m not impressed. I hope car buyers aren’t falling for this “free trial” deception.

This “policy” is not free to the consumer. Rather, if you want to reserve the right to return your new Chevrolet, it will cost you $500. The reason is that Chevy is offering all buyers a $500 “rebate” if you “waive” the right to return your purchase.

Seriously, who is going pay $500 for a sixty day “free” trial on a Chevrolet?

Instead of buying a GM car, spend some time catching up on your personal finance reading. I recommend the following:

Over at Debt Free Adventure, Matt Jabs joined the “I don’t care what my FICO score is” club. Don’t overlook the comments to the post. I wish more folks would throw off those credit score shackles. It’s sad and disappointing that many personal finance bloggers devote so many of their words and advertising links promoting the “best” credit cards. There is no “best” credit card. Rather, there are some that are less bad for you than others.

Andrea at Fools and Sages wrote a nice piece on the attributes and benefits of thoughtful spending.  Americans are notorious for being impulsive shoppers and less than mindful of the consequences. As Money and Such tells us, buyers on credit are often undisciplined consumers.

For a final dose of hard truth, the Macroblog (from the Federal Reserve Bank of Atlanta summarizes the evidence that our economic recovery will be a “jobless” recovery. A lot of the jobs that have been lost are not coming back. Get used to it.

On my Go To Retirement blog, I wrote about planning for a phased retirement and at Failsafe Retirement, I commented on ways to turn savings into retirement income.

Enjoy the rest of your weekend.

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7 Responses to “Don’t be Fooled by GM and Other Readings”
  1. MasterPo says:

    I wouldn’t buy a Government Motors car if it was the last auto on Earth!!!

    I’d probably get a Toyota or Hyundai.

  2. Evan says:

    I keep seeing those commercials. I am just waiting for the class action suit against deceptive advertising and fraud when the dealers refuse to take the car back!

  3. cjbr549 says:

    Wow, 500 to drive a cars wheels off for 60 days? That’s way less than depreciation. When people figure this out, GM will have to kill this program quickly, or face bankruptcy again. The golden rule of promotions is never give away anything more valuable than the product your trying to sell. 500 dollars for 60 days of driving is way less than renting a car for that amount of time, so unless they have some sort of hook in there to prevent people from just abusing the car for 2 months and returning it, it will happen. Good luck with that promotion, GM.

  4. MasterPo says:

    IMO the only thing Government Motors has going for it is some very good financing options, like zero-interest for 60 even 72 month loans!

    Other than that, I wouldn’t touch a GM car.

  5. kitty says:

    @cjbr549 – good point about it being cheaper then rental. So if someone needs to rent a car for 2 months e.g. totalled one’s car or just wants to spend a couple of months driving around the US, here it is. Hope people who need a car rental for that long would figure it out…. Too bad GM doesn’t give an option of less time: e.g. if you only want to “test drive” for 2 weeks, you’d pay $125 (this is a bit more expensive). Maybe you could bargain: “I need to test drive this car for 2 weeks”.

  6. Andrea says:

    Thanks, TML, for the link.

    Re: the rebate … back in January I tore apart the Hyundai return plan over on my blog. I’m not sure if it’s still in place (I’m not buying a car until mine quite literally falls apart, so I’m not shopping), and the upshot was similar – it’s a very expensive insurance policy, basically.

    And re: it being cheaper than a rental, I would imagine if I went and tore apart the plan details on this as well, it wouldn’t be that simple. In fact … I think I’ll go do that right now. :)

  7. Andrea says:

    And? Hoorah on the FICO thing. I’m of the same mind, especially as some companies are adding annual fees to cards that people haven’t used in a while. If you close the account, you risk lowering your FICO score, but if you keep it open because you think that long term relationship is going to help your score, you have to pay a fee? It’s absurd, but they know people are so caught up in their score that they’ll pay it.

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