Gm Customer Protection Plan

Paul58 · March 31, 2009

GM announces it's own Customer Protection Plan:

The first details

GM will offer payment protection during the first 24 months of ownership
GM will pay up to nine payments of $500 should the customer lose their job
GM will protect the value of newly purchased vehicles by giving you more when you trade it in
OnStar will continue to be standard and free for one year
GM will continue with their 5 year /100,000 mile warranty

Official GM Total Confidence Website: http://www.GMconfidence.com (as of now the site has not yet gone active)

I guess all this will be coming from our tax dollars via a bailout! I know the Government said they would cover the warranty, but did they sign up for the rest of this package? I'm about as confident this protection will be there when I need it as I am that Social Security will be there when I need it!

VMax2007 · March 31, 2009

I guess all this will be coming from our tax dollars via a bailout! I know the Government said they would cover the warranty, but did they sign up for the rest of this package? I'm about as confident this protection will be there when I need it as I am that Social Security will be there when I need it!

In your eyes, is there ANYTHING GM can do right?

Maybe you should go buy a Ford?

Have you stopped to think about WHY marketing has decided to match Ford and Hyundai with this plan?

ryan_hermanutz · March 31, 2009

I think that the monetary cost is far less than the psychological cost. Now everybody who is scared because they did not get another bailout and think they are going to go belly up just go a little insurance to make a 15K – 55K purchase. It’s only $4,500 and I bet they work that against current incentive plans or drop them altogether. Smart move, thanks for doing it Mr. Henderson!

VMax2007 · March 31, 2009

With unemployment skyrocketing and the majority of Americans fearing for their job (a recent poll said 60% of all Americans do not feel secure in thier job). How many of these people are going to be shopping new cars? Now considering many of these people may NEED a new car, why would they buy a GM instead of a Ford or Hyundai with this plan?

Regardless of your financial situation, you can't make money when the showrooms are empty.

Paul58 · March 31, 2009

I guess all this will be coming from our tax dollars via a bailout! I know the Government said they would cover the warranty, but did they sign up for the rest of this package? I'm about as confident this protection will be there when I need it as I am that Social Security will be there when I need it!

In your eyes, is there ANYTHING GM can do right?

Maybe you should go buy a Ford?

Have you stopped to think about WHY marketing has decided to match Ford and Hyundai with this plan?

Don't get me wrong, it's not GM it's all the Bail-outs that I'm against! I don't care how you slice it, this money has to come from somewhere, and I for one don't really want to be paying off all the Bail-outs once I'm retired and on a fixed income! I'm really getting sick of subsidizing idiots who made bad financial decisions and now have their hand out for government freebies... I wouldn't mind so much if there was an equitable distribution of these funds and those of us who made wise decisions receive some benefits of the bail-outs and stimulus money (other than the $13.00 a week we were all promised).

I also think some of the stimulus packages will just encourage more people who can't afford any more debt to go deeper into debt.

Georgia is proposing a new vehicle tax plan that will eliminate the ad valorum tax (or birthday tax as it's known here). It's supposed to stimulate the economy and help the auto industry by doing away with the annual vehicle tax on all vehicle purchased after jan 2010, and cap sales tax at $1500. The problem is it caters to the rich and encourges the ignorant to purchase more than they should. For example, tax on a $20K vehicle is roughly $1500. tax on a $150K Mercedes is roughly $10,5K! Now tell me who is benefiting from this? Also, those of us who choose to keep our current vehicle, pay it off and become debt free will continue to pay the annual ad valorum tax till we die! So, your average non-forward thinking individual will think they're saving money by going out and buying a new vehicle when they can barely afford to put food on the table just to save a couple hundred bucks a year on vehicle taxes! Again, nothing against GM, Ford, Banks, etc, I just feel the government should stay out of free enterprise!

VMax2007 · March 31, 2009

I guess all this will be coming from our tax dollars via a bailout! I know the Government said they would cover the warranty, but did they sign up for the rest of this package? I'm about as confident this protection will be there when I need it as I am that Social Security will be there when I need it!

In your eyes, is there ANYTHING GM can do right?

Maybe you should go buy a Ford?

Have you stopped to think about WHY marketing has decided to match Ford and Hyundai with this plan?

Don't get me wrong, it's not GM it's all the Bail-outs that I'm against! I don't care how you slice it, this money has to come from somewhere, and I for one don't really want to be paying off all the Bail-outs once I'm retired and on a fixed income! I'm really getting sick of subsidizing idiots who made bad financial decisions and now have their hand out for government freebies... I wouldn't mind so much if there was an equitable distribution and those of us who made wise decisions received some benefits of the bail-outs and stimulus money (other than the $13.00 a week we were all promised).

I also think some of the stimulus packages will just encourage more people who can't afford any more debt to go deeper into debt.

Georgia is proposing a new vehicle tax plan that will eleminate the ad valorum tax (or birthday tax as it's known here). It's supposed to stimulate the economy and help the auto industry by doing away with the annual vehicle tax on all vehicle purchased after jan 2010, and cap sales tax at $1500. The problem is it caters to the rich and encourges the ignorant to purchase more than they should. For example, tax on a $20K is roughly $1500. tax on a $150K Mercedesa is roughly $10,5K! Now tell me who is benefiting from this? Also, those of us who choose to keep our current vehicle, pay it off and become debt free will continue to pay the annual ad valorum tax till we die! So, your average non-forward thinking individual will think they're saving money by going out and buying a new vehicle when they can barely afford to put food on the table just to save a couple hundred bucks a year on vehicle taxes! Again, nothing against GM, Ford, Banks, etc, I just feel the government should stay out of free enterprise!

I don't like bailouts either...but remember, these loans are secured loans, not grants. Even if GM were to go under, the loans are backed by secured assets. So either way, the gov't will be repaid.

BuckFeverZ · March 31, 2009

I 100% agree with Paul's point that this will most likely encourage people who cannot afford a new vehicle to go out and get one anyway since GM will pick-up some of the tab if you get laid off...

VMax2007 · March 31, 2009

I 100% agree with Paul's point that this will most likely encourage people who cannot afford a new vehicle to go out and get one anyway since GM will pick-up some of the tab if you get laid off...

I wonder how this works with "seasonal" employees and others who have scheduled/regular layoffs? I woud assume there is a lot of fine print stipulations to prevent abusing this plan.

ryan_hermanutz · March 31, 2009

I year ago I would have agreed with that. Now though the credit requirements are far different than they have been, so you need to prove that you can actually pay your bills before they just let anybody take out loans.

Paul58 · March 31, 2009

I don't like bailouts either...but remember, these loans are secured loans, not grants. Even if GM were to go under, the loans are backed by secured assets. So either way, the gov't will be repaid.

I wish I had your trust in our current administration (or past for that matter)... Again, I really hope they succeed for everyones sake, but the way we're headed scares the hell out of me!

I know the ole addage "you have to spend money to make money" probably still holds true, but personally, I'm in skrimp, pay-off and save mode at the moment, and feel there is a majority of the population that either is, or should be of the same mind-set. I can't help but feel the government is letting some of the worse offenders off with just a slap on the hand, while others (who need help because of situations out of their control) continue to suffer.

I was listening to Dave Ramsey yhe other day and there was a guy who said his financial advisor recommended he purchase a new vehicle before filing for bankruptcy! What's wrong with this picture? But, you'd be surprised the number of people that see nothing wrong with this! These are the same people that will be buying cars they don't need to get "protection" and save "taxes" by going further into debt...

Okay, I'm done...