GM – Lease with Option to Buy
The new CEO of GM makes us a guarantee, essentially extending “Cash for Clunkers.” That guarantee is that if you buy a GM and you don’t like it, then you can bring it back after 60 days. Cool!
Allow me to translate: GM is spending our money to sell our cars back to us. But first, GM is going to lease us cars we already own. The good news is you will have the option to buy it…a second time! See what GM thinks in this statement:
“We’re putting our money down that if people buy one of our vehicles and don’t absolutely love it, we’ll take it back,” Bob Lutz, GM’s vice chairman of marketing, said in a statement.The campaign marks GM’s efforts to rebound after a 39-day, U.S.-steered bankruptcy and a $50 billion federal bailout. GM, which is shedding half of its U.S. brands, will try to rebuild a U.S. market share that has fallen to 19.5 percent this year from a peak of 50.1 percent in 1962.
The plan:
• Covers Chevrolet, Buick, GMC and Cadillac models for the 2009 and 2010 model years.
• Allows customers to return their cars after 31 days and before 4,000 miles.
• Does not cover leased vehicles.
“Three or four years ago, this would have been a huge risk,” Lutz said during a conference call. “We are now so confident of our vehicles, we can afford to take this risk.”
Risk? I’d say that having $50B in the bank at the expense of the taxpayer helps to mitigate that risk just a bit! Risk is more like what millions of entrepreneurs do every day without government backing, and not having Big Brother there to extort its citizens at their whim.
As for the quality of GM, I’m happy that Ed Whitacre believes GM has made such a dramatic turnaround in only a few months, however I remain a bit skeptical. When I think of the best made automobiles, I’m sorry to say GM isn’t in my top three. I predict that GM will get back a lot of used vehicles after 60 days, and the public will be forced to pay for another group of clunkers in yet another government-subsidized sale.
Oh, and if you think that you will be getting your car “pimped up”, think again. It doesn’t include add-ons, as it says in the guarantee:
“The Satisfaction Guarantee covers the vehicle purchase price and sales tax, but not other add-ons like accessories, negative equity on a trade-in or other fees; other restrictions apply.”
Here’s the wrap:
The previous cash for clunkers propped up the GDP for August, so why not a new approach to fleecing the taxpayer that will help the GDP in the Nov/Dec timeframe. And just in time for the lousy Christmas season inevitably to come.
If this newfound exuberance were private-sector, I would warn the CEO about getting too cocky. Obama doesn’t like anybody into “exceptionalism.” However because GM is now Government Motors, Whitacre might actually be able to pull this off! After all, the Fed is always ready to step in and bail out the UAW with taxpayer money. All it takes is socialist in charge and a Democrat Congress. Now that GM is Government Motors, they are certainly too big to fail!
That’s my rant!
© 2009 Kevin Jackson – The Black Sphere All Rights Reserved
31 Comments »
GH says:
October 6, 2009 at 3:29 pm
Even repeat fools get tired. And smarter hopefully. Kevin doesn’t even need to inject his signature humor much here. It appears to rolling out with every vehicle! 
. Thank you for lettting us know KJ! I think. 
.
.Jim Schurmann says:
October 6, 2009 at 4:30 pm
Kevin
I’ve been buying GM vehicles all my life.Also I’ve been a member of the IAM union for 31 years recently retired.I won’t buy any vehicle made by gub-ment motors.I’m sick of BHO um um um fleecing the taxpayers to appease his corrupt union buddies.
Kevin Jackson says:
October 6, 2009 at 5:40 pm
@Jim – I agree wholeheartedly. I think the gravytrain should be decommissioned!
Kevin Jackson says:
October 6, 2009 at 5:40 pm
@Elcee – TAPS is playing for your Saturn. I suggest Hospice!
James H says:
October 6, 2009 at 6:29 pm
Well….this is what happens when the fascists are in control. I own a Ford but how long before they become Obama Ford? How long before we can’t even own a house? Oh maybe they’ll let us own a house but the holder of the mortgage will be Big Brother. Big Brother and the Holding Company…wasn’t that Janice Joplin’s first group?
Great writing as always, Kevin.
Sir RonB says:
October 6, 2009 at 7:10 pm
Thirty plus days in bankruptcy and a turn-a-round is what we suppose to believe. Well the UAW is still the group charged with assembling these wrecks. If they wanted to be able to really turn this company around then they should have gone through normal bankruptcy and voided all collective bargaining agreements and restructured properly.
Now they are looking for more short term stimulus like the Cash For Clunkers was. Two months of more government subsidies and now they can’t sell cars so lets create another short term stimulus of 60 day return policy. Who do they think they are…Target or WalMart.
Tamara says:
October 6, 2009 at 10:48 pm
What idiot would buy a Government car after THAT commercial?
Unless you are a freeloader.
Oops.
I forgot.
That’s the appeal of the “Get Shit For Free” Government.
Mick says:
October 6, 2009 at 11:20 pm
Good topic Kevin.
One of the deals that was in process when we the taxpayers bailed GM out was the Saturn. The sale between GM and some foreign car maker was in process and supposedly it was a done deal and the proceeds were going to be used to pay back their debt to the taxpayers. The foreign car maker walked away from the deal last week and GM announced they will shut down Saturn. Saturn vehicles will be serviced by GM at any GM dealer.
Now this bullshit about returning a car if you don’t like it has to be the dumbest thing I’ve ever heard. It is nothing but a financial disaster. All new GM vehicles are usually floor-planned with GMAC. A dealer sells a GM and pays off the floor-plan for that vehicle. When the customer returns the vehicle he will get his money back and the dealer will have to floor-plan the vehicle as a used car which will make him have to borrow the difference from another borrower for the difference between the new vs used floor-plan. He will eventually sell the vehicle. But, it will be sold as a used vehicle and he will be out a good 20%. Where is the dealer going to get that money? For sure not from GM. So, the dealer will incur a good 25% loss on the sale, the sale reurn and the resale as a used car.
And how much is the dufus that came up with this financial disaster getting paid?????
One more example of the incompetency of Obama and his admin….will say this again….Obama wasn’t overly successful as a community organizer and he was worse as a US Senator so aren’t we getting what we deserve?
Mick says:
October 6, 2009 at 11:37 pm
GH….Ford has announced that they will become profitable sometime next year. For the industry they are doing great. They led all American made vehicles in the cash for clunkers program.
When Sept auto sales were announced last week GM was down 46% from last year, Chrysler was down 42% and Ford was down only 9% from last year. That was damn good!!
Mick says:
October 6, 2009 at 11:47 pm
Forgot to add….during the bailouts Washington kept saying certain company’s were too big to fail. That statement was pure falacy. GM was not too big to fail. They should have filed chapter 7 bankruptcy and their vehicles taken over, for a price, from other auto makers. There is no way in hell that this company is ever going to be profitable again. The only possible way is if they develop a creative accounting system for themselves and overlooked by their audiors. They will continue to receive taxpayer dollars because the excuse we’ll be told is they are too big to fail. This will just be another lie from Obama.
Dana says:
October 7, 2009 at 1:39 am
@Mick
Don’t forget, the UAW has its greedy paws all over this. Remember, they are “business partners” with GM now! Business, hah! The only thing they know about business is how to extort money from it.
But I have to disagree when you say there is no way GM can be profitable again. They could turn the company around if they eliminated those ridiculous union contracts. I’m originally from Michigan, Flint/Detoit areas. Many family members are lifers in “the shop”. One of them came home on his lunch break and stayed home for the rest of his shift (buddies punched him out) every day of his life long career at GM. Another was (still is) a hard-core alcoholic and druggie who managed to actually make it to work a few days a week, but was drunk or stoned most of the time. GM tried to fire but the union contract has a minimum of 3 rehab programs built into it so you can never get rid of these money sucking losers.
Another works for Chrysler. Ah Chrysler! Well, they have the sweetest deal with “sub pay”. That’s pay for when you’re laid off, you still get paid 90% of your weekly pay. 90%; that’s gas money back and forth to work! Let’s all work for GM and pray we get laid off!!
Now they’re being faced with living in the real world. “What? You mean I don’t get paid for not working? This ain’t fair! Let’s help elect Barack Obama to get our fair share!” Thank you Unions, for taking what was once a very noble cause and perverting it for your own selfish agenda while taking the rest of the country down with you.
madmath1 says:
October 7, 2009 at 3:13 am
Ecee, love the expensive funeral part. Fankly, I’m confused. Why does GM have a Chairman when BO is in charge? It’s easy to have confidence in a crappy product when money can be printed to cover your losses. I’ve own 3 GM cars and they were all garbage. I own Ford and although I wasn’t a Ford fan when I got my Focus, I am now. They learned and improved. Government Motors will produce crap, pay too much to make them, charge even too much for for them (after all, the electric Volt is project to cost $40,000) and will most like fall apart months after purchasing them. No thanks. Someone should stick a fork in GM because they’re done.
greg says:
October 7, 2009 at 7:36 am
For the last 15 years I’ve been a real fan of Chrysler products. I really like the mini-vans and their midsized cars, but not any more! I will not buy a car from bail-out motors any more! I can’t find any bail out money that went to Ford, but what I read they used their heads and figured out how to do business without the government’s help. This is what the other 2 should have done. Now that the government is involved with the 2 its all over for the enterprise. I really hope that Ford can make it on their own. We really need less government and not more!!!
GH says:
October 7, 2009 at 8:00 am
Mick. : ) . Good to hear Ford appears to be cut from a different kind of management. Henry would be humbly hopeful if not down right proud! I’d heard he was a generous employer, but there is more to that story where once again, Government couldn’t have that. Even then. Was it the Progressive Movement that barred him from giving high wages to his men (notice, no Union for miles needed). That’s what I’d read at any rate.
GH says:
October 7, 2009 at 8:12 am
I preferred GM too. But I agree. Not on your life under this Set up. And now, thanks to a poster or two here, I’m learning of more absolutely unfathomably unnacceptable behavior by their Union. And people voted for this Administration’s thought processes?? Maybe they weren’t clear on the nature of the Beast. Hope all are on high alert now. And I pray we can turn this about soon. 
.
Joe says:
October 7, 2009 at 8:25 am
If one is dumb enough to buy a Gvt. Mtrs. car, is dissatisfied and takes it back within the 60 day period, the feds will cut a check to Gvt. Mtrs. to cover all of the costs of that vehicle, including the floor-planning, re-coditioning and whatever else needs to be done…all with tax payer money, of course.
This amounts to a government subsidy that lowers the cost of business for Gvt. Mtrs. and therefore is an unfair competition with private companies, which must still pay all of those costs, if they were stupid enough to have such a ridiculous return policy.
Then what are they going to do with any and all of the add-ons on the Gvt. Mtrs. car when it is returned…take them off the car and hand them to the unhappy consumer? Not on your life!
They will simply deduct their inflated costs from the pay-back, and probably cover their losses right there.
I am certainly glad that I don’t have to compete with a system like that!
Ford has to.
And soon we all will.
Mick says:
October 7, 2009 at 8:50 am
Dana you are right. I overlooked the union when I said GM would never be successful again. The union is the reason why they are not going to turn things around. Along with their own stupidity. Do not know the final status to the ownership of GM other than the governments involvement with our dollars. At one time the union was going to own a good percentage of GM and that would have created a big conflict of interest between them and Ford.
Another reason GM will not be successful is they have nothing in their pipeline to become successful with. Saw their CEO on tv giving a pep talk to investors about some model that’ll soon be available. Only problem is the thing will cost well into 6 figures! After spending all those dollars they can only come up with a vehicle for the top 1% of car buyers!!!
Julie says:
October 7, 2009 at 9:48 am
Government Motors can improve, and with this guy in charge, it just might. However, long-term reliability isn’t something that is decided upon within 60 days. The consistent winners on long-term reliability are NOT GM vehicles; Honda, Nissan, etc. So wow, yeah, what a promise, 60 days! Woohooo!
Rich says:
October 7, 2009 at 11:36 am
Joe, you are correct! Ford should sue GM for unfair business practices. Maybe we taxpayers, should sue for theft of our money!
Stitch says:
October 7, 2009 at 9:45 pm
I’ve never bought a foreign care in my life, but I will NEVER buy ANYTHING made by UAW ever again.
Gubment Motors and Cry-slur STOLE our 401k and bond money and stuffed it into their FAILED pension plans.
Obama told the folks in California he would run every smoke-stack industry out of America. Then he went to Detroit and told UAW he was going to save their jobs.
Someone got “played”…
UAW kissed Obama’s ass…
…Obama shit in their face!
STITCH!
Dana says:
October 8, 2009 at 12:30 am
@GH
I am convinced if the country knew the way unions actually operate once they force their foot in the door of America’s businesses, the would be sickened by the behavior and vote all unions out of their company and damn them to hell!
Even the union members are kept in the dark about the union’s skank behavior and wreckless spending of their hard earned dues money. Seriously? Pay someone out of my paycheck to “represent” me? WTF? Represent me how? Oh, I forgot, they do “fight” hard to keep useless employees around. They do “fight” hard to ensure that the laziest, worst employee makes exactly the same as the stellar ones. Remember, equal pay for equal work. The union “gets me” benefits and wage increase? Give me a break. The business owners pay for benefits and everything else. Unions just take the credit and all the sheeple (members) goose step along right behind their union reps without a clue.
I say, let me represent myself with my outstanding work ethic and drive and contributions and get those union thugs out of my way to success!
Janelle says:
October 8, 2009 at 2:22 pm
For all of you that need a laugh…… take a look at iowahawk and the graphics.
FA says:
October 9, 2009 at 8:03 am
“…the “Get Shit For Free” Government.”
Tamara, you come up with the greatest lines!
CET says:
October 9, 2009 at 8:17 pm
I stumbles across this site by accident & they do say some of the greatest discoveruies were accidents. Keep up the good work Kevin, but you do know you’re a racist, right? lmao. I also grew up in GM town (Flint, Mi) my step brother is a prime example of the UAW & what it stands for. A supervisor came by & saw his work area was trashed & told him to clean it up. Union rules state management cannot speak to employess with a commitee man present for the event. My stepbrother immediately screamed for his union rep & refused to clean up his area. He spent the next 2 hours dropping little screws in the piston shafts of the motors he was working on, he said that would that S.O.B. he couldn’t push them around. By his own account he ruined over 50 motors & cost GM over $40,000 dollars, I have not bought a GM vehicle since & that was 1985.
CET says:
October 9, 2009 at 8:21 pm
sorry all got too excited lol.
stumbled not stumbles.
discoveries not discoveruies.
with should have been without.
that SOB should have been teach that SOB.
Mazzuchelli says:
October 13, 2009 at 4:47 pm
Kevin, you are the best. HOWEVER, I’ve driven GM products my entire life. My Dad, a Ford man, switched to GM after driving some of my rides. He currently has a 2001 Yukon with 340,000 documented miles on it. In fact, it’s first calamity just occurred, no reverse, when he was chasing trains up in the Rockies [don't ask]. I have to ask some on this forum to think before they rant about GM. What has occurred is a travesty but with GM we at least save some North American manufacturing prowess for a couple of years. What we saved with the bank bail out is not that clear to me.
I had to take exception to Lutz’s comment about quality. I have a 2003 Z06 Corvette and a 2004 Cad SRX V8 AWD. Not a single problem with either and the poor devils are thrashed to a degree that is actually criminal as described by the Iowa Motor Vehicle Division.
In the last 15 years or so I have owned a 92 Olds Tornado Trofeo, a 97 Eldo, a 99 Corvette, a 2001 Silverado, an 03 Avalanche, the two I have now as well as my better half’s Lincoln pick up. These are flawless vehicles. It’s a tragedy so many people drank the media koolaid concerning American business and particularly American vehicle manufacturers. Say what you want about the UAW, it’s the media and uncritical consumption of it’s content that has sabotaged U.S. business since at least the ’60s. Thanks for listening to my rant.
Chip says:
October 15, 2009 at 3:02 pm
I refuse to buy a GM vehicle! Obviously the Japanese have been kicking America’s butts for years in lean manufacturing, gas mileage, & overall efficiencies. Unions must be abolished too! I am not quite sure how this can be done though?
I will never forget working for a auto manufacturing company several years ago. The union had such a grip on things. There was no way anyone could be fired and no incentive to work hard.
jj solari says:
October 20, 2009 at 3:55 pm
the kenyan in chief doesnt like exceptionalism because he is so far below average himself.
ElCee says:
October 6, 2009 at 1:52 pm
After 3 years and 56k miles, I still love my Saturn. But it’s an orphan! The clock is ticking on being able to get it serviced. There is a “sister” Pontiac model, but same boat.
So, even if I could take it back, why would I buy another GM? It has little to do with the car itself – it has to do with not trusting “gub-ment” motors. I personally have heard an awful lot of people who won’t consider a GM for just that reason.
GM is dead, it just hasn’t been buried yet. When it is, it will be turn out to be a very expensive funeral.