04 rebate issue

[Jim S.]

I signed the purchase contract on a 04 Commemorative Ed conv on 01/06/04 and delivered the paperwork to the Dealer on 01/07/04.Took delivery on 01/12/04.
I found out a week later that GM on 01/08/04 offered a $2000.00 rebate on Corvettes.
Neither GM or the Dealer will honor the rebate as I purchased the vehicle a day early and the rebate program is pretty much written in stone.
My queston is: Is this any way to treat a loyal customer or am I wrong to think GM should honor the rebate.

[Joe L.]

Re: 04 rebate issue

Jim------

The purpose of a customer rebate program is to influence people to purchase a car and to do so within the rebate period. Basically, it's designed to push people that are "sitting on the fence" just over to the "buy" side of said fence. Obviously, in this case, the existance of the rebate program had nothing to do with your purchase decision since you didn't even know about it until after you completed the deal. Nevertheless, if you had purchased the car during the rebate period and even though the rebate had nothing to do with your decision, you would have "had" them and they would have had to give you the rebate, regardless. Unfortunately, that isn't the way it worked out. These rebate deals are always VERY time-specific---if you purchase a car one day before (or, one day after) the effective period, you don't get any benefit of the rebate. That's how it is.

Also, to look at it from another perspective and analogy: let's say that you had auto insurance with the same company for 30 years. One day you decide to cancel the policy and, as luck would have it, you have a major accident the following day. Do you suppose that the insurance company would pay the claim just because you were a loyal policy holder for 30 years and the accident only happened one day after you cancelled the policy? I don't think so.

Notwithstanding the above, the real fault here lies with the dealer. Their sales staff should have known of the up-coming rebate as of the day before it was to be effective and they should have told you about it. Often, these rebates don't involve long lead time notification to dealers but I know of no case where dealers are told of it on the morning of the first day that it's effective. Plus, the GM rebate programs (or, "spiff" as it's called in the industry) usually has no dealer "participation" involved. So, it's "cost-neutral" as far as the dealer is concerned. I'll bet that if you had gone into the dealer in a hard negotiating posture and "waffled" on buying the car because you were a few thousand dollars apart on price, then they would have told you to come back tomorrow and you'll have a deal.

There IS another possibility, though and that's IGNORANCE at the sales staff level. These days it's quite common. Dealer sales folks don't know their product and "don't know 'nuthin else, either". The salesman selling you a Chevrolet today was selling Toyotas last week at the Toyota dealer and selling Mercury's the week before at the Lincoln-Mercury dealer.

Regardless of the reason for the goof-up at the dealer level, they're VERY UNLIKELY to come up with the $2000. They can't get it out of GM because of the time-specific rebate period and it would wipe out most of their profit on the sale if they have to come up with it themselves.

[Rich G.]

Re: 04 rebate issue

Everything Joe says makes sense, but there might be a loophole. I recall that in NY, there is a cancellation clause in the sales contract, where the buyer can get out for any reason within a short period of time. Read your sales contract closely. Even if you lose a few $$ you'd be ahead of the game.

I was leasing a Volvo years back and I signed the deal and when I got home, something made me think better of it, so I called them and told them I was exercising my right to cancel. All of a sudden, the salesman "remembered" that if I did the deal now, it came with free service for the term of the lease. Most of these guys have "selective memories"

As for me, as I get older, I can remember stuff whether it happened, or not.

Rich Giannotti

[Jim S.]

Re: 04 rebate issue

Joe
Your analogy of the insurance lapsing assumes I as the consumer canceled the policy. In that case, I would absolutely be on the hook: However had the insurance company canceled the policy without a timely written notice to me and I was unaware they had canceled it, they would be on the hook as insurance policy are so unilateral that courts almost always side with the consumer on any ambiquity.

A better premise would be if I had bought a $10,000 Plasma TV from Circuit City, Best Buy or whoever and found out 2 days later or even 2 weeks later that it was on sale for $9,000, both companies would refund the difference and in some instances pay an additional 10% of the difference.
These companies know the value of a good loyal customer base. If they didn't look out for the core customer, they know they will take their business elsewhere.

GM on the hand apparently has little or no customer loyality. They are more concerned with attracting those on the fence at the expense of alienating their customers that were willing to purchase without the gimmicks.

In my opinion,there are several marketing flaws in the way GM administers rebates. First the rebate immediately and effectively devalues the vehicle by the rebate amount in addition to the large depreciation hit everyone suffers when they drive it off the lot. Those who didn't receive the rebate lose the most when it's time to sell or trade.
Rebates as you mentioned are directed to those on the fence. Again when it's time to trade, These same people will again be reluctant to purchase without another rebate. No rebate and they will probaly go elsewhere.

So GM lost their loyal customer base because they weren't given the price match plus they lost the on the fence buyer because they expect a rebate. It's a lose/lose deal for the General. Match the rebate within 30 days and they at least keep their core customer.

All you have to do is look at how GM's market share is falling. Toyota already passed Ford as #2 and will overtake GM in the near future. GM need only look at their marketing department to see why customer are not buying.

As a consumer, Why would I ever want to do business with a company who has so little regard for their customer. With all the choices in the marketplace, I will never purchase another GM product.

But hey, I wrote my letters to the Dealer and GM (Being polite and respectfull)and I know nothing will become of it. $2000 rebate on a $50,000 vehicle is not a life altering event.

Joe, I really appreciate your comments. I like to hear opposing views and opinons. Never hurts to see both sides. I will drive and enjoy my 04 and start the long overdue restoration on my 66. For the past 35 years it has been used as a driver and it is ready for some attention.

Thanks again.
Jim

[John W.]

Re: 04 rebate issue

Jim,

I recently had a friend who bought a Ford truck. Here is a copy of the e-mail he sent to the Ford Marketing Manager, and a copy of his reply.

I will delete names to protect the inocent.

Dear Marketing Manager,

I recently received your $1,000 loyalty incentive information regarding the 2004 F-150. After carefully reading the guidelines, I was left with a feeling of "lack of appreciation" as a loyal Ford customer. I feel a loyal customer is one that orders a new vehicle before they are in production. I ordered my 2004 F-150 Lariat, VIN ******************, before there was one to see in person, let-alone test drive! It was the first customer ordered F-150 at (this dealer). Then, after being built, I had to wait for the release on the "Engineering Hold" on the motor mounts before accepting delivery. I am two months away from my 50th birthday, and have owned Ford products since my first 1965 Mustang at the age of 15. I presently own the following Ford vehicles: 2004 F-150 Lariat VIN *************, 1999 F-150 Lightning VIN ********($1,000 Loyalty Incentive qualifying vehicle),1979 Mercury Capri with a 460 engine swap, and a replica of a 1923 Model T with a 6:71 supercharged 351C.

If your program truly is about "loyalty," I feel that I have earned the $1,000 reward. If, on the other hand, it is really just about trying to boaster sales between 11/14/2003 to 1/06/2004, then call it "$1,000 CASH-BACK REBATE PROGRAM ON THE NEW 2004 F-150."

P.S. No reply to this communication will weigh greatly on my next vehicle purchase decision.

Sincerely,
*********

Mr. **********

First, I apologize for the delay in responding to your note below. I am very sorry for any inconvenience that may have caused. Also, I wanted to thank you for your continued and sustained loyalty to the Ford Motor Company and especially to Ford Trucks. We very much appreciate your business and your loyalty to our products. In addition, I wanted to thank you for your purchase of the new 2004 F-150 SuperCab Lariat . Your passion for Ford and F-150, in particular, is evident given your ordering of the new truck before seeing or test driving one and your patience in waiting for it to be delivered. I hope that your experience with the new F-150 has met and exceeded your expectations.

I have read your request below and agree that you definitely fit the description of a loyal customer. And although the purchase of your F-150 was already complete by the time you received the mailer for the $1,000 owner loyalty bonus, you certainly deserve that bonus for your purchase and your loyalty to Ford and F-150. As a result, I have processed your request through our system and you will be receiving a check for the $1,000 owner loyalty bonus. This check will be sent to the address you provided below and should arrive by the end of next week (week of 12/29/03) or early the next week (week of 1/5/04). Please let me know if you do not receive your check by 1/7/04 and I will track it down.

Thanks again for your loyalty to Ford and the new F-150. I hope this resolves your concern below, but please let me know if you would like to discuss the matter further. In addition, if I can be of service to you down the road, please do not hesitate to contact me.

*********

It doesn't cost anything to ask! Good Luck with GM.

[Chuck S.]

Re: 04 rebate issue

Jim, you didn't say if you heard GM's answer from a corporate rep or from the dealer.

If you heard GM's position from the dealer, then GM may not even know there is a problem. Send a letter with the complete story to the Chevy zone rep (certified mail) before you give up. I had good luck getting a dealer misrepresentation problem resolved by a Buick zone rep (it should work the same). After the dealer heard back from the zone rep, he went out of his way to be helpful. I was astounded...no more problems.

[Patrick H.]

Re: 04 rebate issue

Wow.

Double Wow.

That's the last thing I would expect from an American car company. Ford is to be commended. Maybe Billy isn't doing such a bad job over there.

Patrick