NEW GM CARD: Earnings Good On Non-GM Vehicles!?

[Perian]

Link: http://gmtv.feedroom.com/iframeset.jsp?ord=701928

HFS is introducing a new GM Card - and for the first time you can use your earned points towards the purchase of any other vehicle from any other manufacturer.

That's correct: Your GM Card earnings can now go towards a Honda, Nissan, Toyota or VW for example!

However - A bonus exists should you choose a GM product.

Details:

DETROIT– Consumers who want to acquire a GM Card, one of the richest co-branded credit cards in existence, but who also want more flexibility in how they can use their earnings now have a new option.

The GM Flexible Earnings Card will allow cardmembers to earn a full one percent on all their credit card purchases. GM will triple these earnings when they are applied toward the purchase or lease of a new GM vehicle. Alternatively, cardmembers will have the option of redeeming their one-percent earnings for the purchase of any other new vehicle or for cash. This new card can be used anywhere MasterCard is accepted and will be available Sept. 29. The GM Flexible Earnings Card is issued by HSBC Bank Nevada, N.A. and has no annual fee.

The GM Flexible Earnings Card joins the suite of credit card products for various customer segments offered by GM Cardmember Services. These products include the GM Card, the GM Extended Family Card for GM employees, suppliers and relatives, and the GM Business Card for small business owners.

“General Motors is expanding the success of the GM Card by offering consumers the Flexible Earnings Card, which gives them more rewards options,” said Jack Bowen, general director, GM Customer Relationship Management.

“This new credit card is yet another feature of GM’s Total Value Promise strategy for the 2006 model year. GM is making a promise to consumers to provide industry-leading value by offering the best vehicles possible at the best possible price. The Flexible Earnings Card represents one more way that GM is delivering on that promise,” Bowen said.

“GM has been a great partner and we are pleased to have a part in providing this innovative card for consumers,” said Walter Menezes, group executive at HSBC Card Services.

Features of the new GM Flexible Earnings Card include a full one percent earnings on all purchases, which can be redeemed for any new or used vehicle make or for cash. These earnings will be tripled to a full three percent if applied toward the purchase or lease of a new Chevrolet, Pontiac, Buick, GMC, Cadillac or Hummer vehicle.

“The redemption options for new GM vehicles, other new or used vehicles, or cash back offers consumers the best of both worlds, as it gives them choices if they do not want to commit to a specific brand years in advance, or decide not to purchase a new vehicle at all,” Bowen said. “From GM’s perspective, this will expand the number of potential GM Cardmembers and enable us to talk to more people on a regular basis about GM’s great lineup of cars, trucks, SUVs and cross-over vehicles.”

Bowen said that the new GM Flexible Earnings Card’s cash-back feature now also enables GM Cardmembers to use their Earnings to purchase vehicle service, accessories and other items from GM dealers.

The GM Card has bolstered GM’s bottom line over the past 13 years by helping to sell or lease nearly five million vehicles. There are currently six million GM Cardmembers.

[Perian]

Suggestion:

To those of you lucky enough to have the 5% unlimited cards - Don't dare fall for this!

[Arizona Slim]

1%? And 3% on GMs? That sucks, I'll keep my card with 5% earnings on GM products. Now that GM's cars and trucks are becoming more desirable, they're going to try to get everyone to switch to the 3% card. The only plus is that you can use the points for service and accessories.

[paul8488]

It sounds like a good idea to expand such a succesful product (like the GM card), but it seems a little counter-productive to allow the points to be used on other vehicles. I gather GM will make money from the finance end of the card, but it loses its advantage of persuading people to buy GM. There's still incentive with the 3 versus 1% earnings... but it still is a little unsettling.

[jschira]

Big deal. Citibank already offers a "Drivers Edge" card that pays a 2% rebate on any new car purchase.

[XCR440SP]

Originally Posted by jschira

Big deal. Citibank already offers a "Drivers Edge" card that pays a 2% rebate on any new car purchase.

The Drivers Edge card was the Old Ford card. Ford quit funding it and so Citibank made it good on any brand, new OR USED vehicle purchase.

[peccles]

Will this one have allowance limits like the current gm card? Will it allow rebates with GMS pricing like the GM Extended Family Card? Will it allow transfers of earnings from another GM card when getting this one like the Extended Family Card does? If the answers are No, Yes, and Yes, then using triple earnings on my next GM car would be great. I have $2600 built up.

[wpbharry]

I made the **************** mistake of falling for the new GM Card back in '02. This is just another way to get more money out of your pocket. And, GM, I'm insulted.

They'll pull the plug on the non-GM offer shortly after launch, thinking that we'll fall for it.

Those with the current Card, don't you dare do it!!!!!

[zeobandit]

Originally Posted by Perian

Suggestion:

To those of you lucky enough to have the 5% unlimited cards - Don't dare fall for this!

I'm not. I'll keep my 5%, thank you very much!

[2000GTPBROTHER]

www.gmflexcard.com , does show redemption limits, but some are higher then then the current New GM Card limits. Example, $1,000 on GTO for current car, shows $2,000 for the Flexcard.

Will give people the ability to earn money they could use for GM accessories or upgrades. Can use the money back feature for used cars. Allows GM to market directly to those that sign up. Earnings may even be stackable with some current cards.

Can't hurt GM.

Just have to make sure you pick the best card, I guess.

[Arizona Slim]

Oh, I just read that closer. The accessories thing is just 1% cash back. They're saying you can take the 1% cash back and go buy GM accessories with it. Discover gives you what, 2% cash back? This new card sucks, get the 5% one while you still can.

[wpbharry]

It's a promo. The redemption limits can, and will, change at a moment's notice. A sham.

[saturnsteve]

Wow, now I just want to know when Saturn will be added to the GM card. This is really bad news for us, if you can go buy another brand of vehicle, and STILL cannot buy a Saturn!

[GMinTheDriveway]

Originally Posted by saturnsteve

Wow, now I just want to know when Saturn will be added to the GM card. This is really bad news for us, if you can go buy another brand of vehicle, and STILL cannot buy a Saturn!

Yeah, no kidding! I have had many many customers ready to sign and drive until they found out they couldn't use any earnings on a Saturn.

[mjd1001]

Saturn is also an issue with me. A few times I would have bought a Saturn product if I could use my GM card earnings..but since I couldn't I bought a different vehicle...a couple times even a non-GM vehicle.