September 12, 2009

GM Kicks Off New Ad Campaign

Auto insurance is an important issue for many people. Consumers who want to stay informed on the subject should know of a recent ad campaign put out by GM. General Motors is now offering a 60-day return policy on most of the vehicles they sell. This policy is an attempt to stimulate vehicle purchases by giving consumers the ease of knowing they can return the car if they so choose. But the deal comes with several stipulations and problems. For example, the buyer cannot put more than 4,000 miles on the car before returning it and the vehicle must be returned within 30 days after the 60 day period has expired. In addition to these stipulations, clients who take advantage of this offer are not guaranteed complete reimbursement of recovery losses, according to Joanne Merrigan at WSAZ. This includes any cost the buyer accrues due to changes in auto insurance rates. With all the stipulations, consumers want to know whether or not this policy is for them.

Making this decision may prove to be a difficult one for consumers, especially when considering auto insurance coverage. Auto insurance rates tend to go up after buying a new car. Taking a car in for just 60 days and putting the new vehicle on an insurance policy may be risking money loss. In that short period of time, a driver's auto insurance rate is likely to increase. Before taking GM up on their new 60-day return policy offer, consider if you already have auto insurance. If so, consult with your auto insurance representative to make sure the 60-day test drive of a GM vehicle won't cause your auto insurance rate to go up too much.

The auto insurance costs may normalize after the vehicle is returned. But what about your old vehicle? According to Joanne Merrigan, GM offers no guarantee that the original will be returned to the previous owner at the time of the return.

The 60-day return policy is, in theory, a good idea for people who want to drive a new car, potentially buy it and have bad credit. But if the decision is going to wind up being more detrimental to your credit score that not taking the 60-return policy offer, proceed with caution. Be sure to keep in mind that the consumer is not guaranteed to receive their original vehicle subsequent to the return. Part of GM's return policy is that the consumer is giving the face value in cash, not including other expenses, for the vehicle being returned.

Before taking GM up on their new 60-day return policy offer, consider a few important factors that might influence a decision.