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More people in Rapid City look at GM cars after rebate announced

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Local General Motors dealers have started to notice an uptick in traffic since the car manufacturer's new money-back guarantee program began Monday.

The rare incentive is designed to improve car buyers' perception of the brand after its bankruptcy and bailout.

The company hopes the offer will attract buyers who are skeptical about GM vehicles' reliability, especially compared with Honda and Toyota cars and trucks.

"We're making better cars than ever before," said Jeff Griffith, general manager of Rapid Chevrolet-Cadillac. "They're trying to get you to give us a chance."

After a buyer checks out the vehicles, he said, "Our stuff will sell itself."

Under the program, buyers can return a GM vehicle - a Chevrolet, Cadillac, Buick or GMC - with no questions asked for a full refund, between 31 and 60 days after the purchase, with some caveats.

Alternatively, buyers can opt for a $500 rebate, and local dealers say buyers this week have chosen the rebate over the refund option.

"I'm hoping it's because they're convinced that the product is fine," said Chris Gengler, finance director at White's Queen City Motors in Spearfish.

Griffith said of the seven or eight vehicles he sold between Monday and Wednesday morning, every buyer had asked about the program, but no one took the refund option.

"They've made the decision, so why not take the cash?" he said.

Gengler and Griffith said there's no comparison between today's GM models and those of the 1970s and '80s.

"The technology and the people they've got in place at General Motors right now are building an extremely good car," Gengler said. "They're just saying, listen, take our product home and drive it for at least 30 days, and if you don't like it we'll take it back, no questions asked."

GM dealers are coming off a summer of strong sales thanks to the federal government's "cash for clunkers" program. Both White's and Rapid Chevrolet say their inventory is at about half capacity and they're waiting on new shipments. The dealers declined to share information about how many cars they have sold through the program.

The Associated Press contributed to this story.

About the GM rebate program

  • Buyers of a new Chevrolet, Cadillac, Buick or GMC choose between a $500 rebate and the option to return the vehicle between 31 and 60 days after purchase for a full refund of purchase price and sales tax. Other fees and expenses are not included in the refund.
  • Returned cars cannot have more than 4,000 miles, and owners must be current on their payments and hold the title to the vehicle.
  • Returned cars cannot have been in an accident or have more than $200 worth of damage as determined by GM, such as scratches, scrapes, dents, odors or burns.
  • Buyers who return their vehicles can't have their original trade-in vehicle back.

For more information, contact a GM dealer or visit www.gm.com/guarantee.

Source: General Motors

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