Is the GM Card Worth It?

[Clocker]

I used to have the GM Card and then migrated to GM Extended Family. I don't use the card any more because there are other cash back cards that are a better value and you don't have to wait until you get another vehicle to get your reward.

[Ming]

Originally Posted by Member17739

But with your Discover card you would never have $3600 to begin with.

True, and I would use my own points if:

A. I thought my point usage would ever come close to the frequency with which I now buy cars, given the small allowances per car.

B. If my Upromise card did not actually have far superior rewards.

With a child now, it would be bordering on irresponsible for me to not take advantage of the Upromise card's savings.

Also, if the GM card's practical useability was closer to the old Blue card's, this whole thread would not exist.

I remember the first time I used my card, I only had a few hundred points, and the finance guy told me he just had a customer use the old Blue card to put $6,000 down on a Cavalier.

The question becomes -- why not let us use more than the 1000-1500 that is the current redemption standard (with a few exceptions)?

Until GM answers that question, my GM card will go unused (and probably even after they answer it, if the answer is spin-filled and disappointing).

[dindak]

I love the GM Card, even at 3%.

If you don't buy new then yes, complete waste. You have to know you will be buying a new GM car/truck in the coming 5-7 years. We have redeemed 3 times since we got the card for an Alero and 2 Montanas (one of them in April where we redeemed all $1951 dollars).

It's a no fee card so it's not like it costs anything and no one should complain too much. It's just a matter of know if it's right for you. I find most people who are unhappy didn't understand the card or rules. Read before you sign I always say!

[Perian]

Originally Posted by 91Saturn

Yeah, the answer to "Is the GM Card Worth It?" is "Depends on which GM Card you've got."

The version of the card that I have IS totally worth it. I started with the old Blue card in 1998. At some point, they changed it to a gray "World" card, but the terms are the same. 5% on your first $10,000 in purchases per year for 7 years, for a maximum of $500 per year and $3,500 total. No individual vehicle limits. I've used it twice, most recently for about $3,000 off of a new Malibu.

I have held three GM "World" Cards since the inception in August of 1992.

According to my May 2008 statements, I have earned $ 39,852.41 during that time period.

While I miss the $1000 per year limit, and the unlimited redemption use, there is still a way to make your GM Card savings pay off.

While I understand the many statements made here regarding purchases - in my opinion, the GM Card really shines when used with a short-term (27 Month) leasing transaction. Using my GM Card points and GM's SmartLease PLUS* program have made my GM vehicles quite a value.

I have nothing but praise for my "World" cards.




*SmartLease PLUS is a one payment lease program from GMAC/SFC.

[ksr]

It's been good for me, but..

I never upgraded to the newer GM card and still get the old program rules. 5% on every purchase up to a $500 rebate per year. No limit on the amount of rebate you can use, and you can use it on any vehicle.

Fortunately, they didn't force original GM card members to change to the newer rules.

I've been a member since 1992 and I've saved $6,000 on the purchase of four vehicles since 1994. I've got another $2,000 in rebates now, and probably will have at least $3,000 by the time I buy another vehicle.

The 21.5% interest rate is ridiculous, but I pay the bill off every month, so that's not an issue.

[ThomasV]

Originally Posted by ksr

It's been good for me, but..

I never upgraded to the newer GM card and still get the old program rules. 5% on every purchase up to a $500 rebate per year. No limit on the amount of rebate you can use, and you can use it on any vehicle.

Fortunately, they didn't force original GM card members to change to the newer rules.

I've been a member since 1992 and I've saved $6,000 on the purchase of four vehicles since 1994. I've got another $2,000 in rebates now, and probably will have at least $3,000 by the time I buy another vehicle.

The 21.5% interest rate is ridiculous, but I pay the bill off every month, so that's not an issue.

I have the same card as you, ksr. I was able to use $3200 worth on my 2007 Silverado.

They included a notice with my last invoice saying the interest rate for past due balances would now be 30%??? I always pay off the balance each month, but I was like whoa. That along with other issues I've had with them, I've decided to not use the card anymore.

So, I've been shopping for a different credit card that allows me to use "points" with more options, like a different make of car, or a trip, etc. Any recommendations? My g/f has a Discover card, but I've discovered that it's not accepted by many merchants.

[Ming]

Originally Posted by dindak

It's a no fee card so it's not like it costs anything and no one should complain too much. It's just a matter of know if it's right for you. I find most people who are unhappy didn't understand the card or rules. Read before you sign I always say!

Well I expected that from someone. Redemption limits are fluid and have less to do with rules, and a lot more to do with how much GM decides to "allow" on one vehicle or another.

As for the "don't complain" part, that only makes sense in a vacuum, where no other card deals are available out there. My Upromise card is also "no fee". If you choose not to look at other deals, then I'm sure that you will be happy and content even if GM lowers the redemptions across the board on all vehicles to even lower than where they are now.

Because someone who does not care to cross shop what other cards are offering and will stick with the GM card regardless is someone who's going to regard the rewards with a shrug as a "bonus" and see using the card as a sign of loyalty to GM. I'm not that nonchalant about how I manage my money.

That's fine for a small segment of the population, but it won't win or keep new card users who are not GM loyalists.

[ksr]

Originally Posted by ThomasV

I have the same card as you, ksr. I was able to use $3200 worth on my 2007 Silverado.

They included a notice with my last invoice saying the interest rate for past due balances would now be 30%??? I always pay off the balance each month, but I was like whoa. That along with other issues I've had with them, I've decided to not use the card anymore.

So, I've been shopping for a different credit card that allows me to use "points" with more options, like a different make of car, or a trip, etc. Any recommendations? My g/f has a Discover card, but I've discovered that it's not accepted by many merchants.

30% is nuts.

Obviously they're just trying to force you out of the old program. I don't recall seeing that notice, but I'm sure they'll bump my rate up too.

They'll never see a dime of interest money out of me.

After I buy my next car, which may be a couple of years off, I'll probably drop the card.

[TimR]

There are a lot of angles a person needs to look at like how often they buy new, models they buy, etc. We seem to be different up here in Canada, there is only one GM card that I am aware of, it is 3% credit (used to be 5%, and that did annoy me) and of course they usually limit what you can use it on.

Since it is revolving, it works best if you buy often which I don't usually do....I still use the card but currently looking at other plans with Visa like the 1% cash back plan...if you only buy once every 5-8 years you would be further ahead with other plans, but again everybody is different and needs to crunch the numbers for their own situation.Over the 15 years that I have owned the card the redemptions allowed get smaller and the credits get smaller...and never offered on the good selling models. Not much of a way to entice me to buy another vehicle.

[SigEpCutlass]

If GM limits my allowance to $500 for my Camaro purchase, I'll be canceling it once I use what I have accumulated on another vehicle after that for the Mrs.

[377Z]

Two things made me eventually get a GM card:

1) Most other credit card reward programs I am aware of are also of questionable value, so there was no clearly better alternative
2) I heard about the top-off lottery, & decided to roll the dice & see if I get lucky.

The bottom line is I didn’t get the strictly on the program’s ‘published’ merits.

I currently have some $2,700 points racked up. Since redemption allowances for most cars are under $2,500, I’ve quit using the card. Thus, HSBC no longer profits from my use, though they still get to collect interest on the $2,700 points I ‘have,’ & they will probably end up getting all of the $2,700 back since I don’t forsee buying a new GM in the next 7 years. But, I don’t plan on using it again under the current scheme, so that revenue stream is gone for them. I’ve gotten the occasional ‘top off’ notice, but unfortunately once again there is nothing in the GM portfolio that is a value to me. I’ve toyed with the idea of getting a GMT360 if the incentives & redemption limits are bumped up, but I wasn’t really looking for an SUV, so the deal will have to be REALLY sweet for me to bite.

If they just allowed full points redemption, I’d probably drive nothing but new GM cars forever—I could concievably rack up $5-7,000 between replacing cars. That would make the difference in the big picture of how attractive a vehicle is to me, and this is the only thing that would pull me away from buying the same model but 1-2 years old. I like the fact that they’ve FINALLY included Saturn cars, as they make the closest to something I’d buy at this point, and I NEVER thought that would happen.

[377Z]

The bottom line is the program seems to be aimed at saving the folks that regularly buy GM vehicles a little money. It isn't enticing any new customers, which seems like it might be an underutilized tool considering GM's steady shrinkage.

[TruckMan]

Imagine how many GM Card users there would be if there were no accural or redemption restrictions. And then there's the potential of new GM owners because of the unlimited points. I'm sure they'd drop the %back to 1%, but, if you saved long enough, you'd have a nice down payment towards a new GM car of your choice. GM should really consider this.

Does anyody know if Ford or Dodge have a similar program?

[Wagon of Fury]

I read all these replies before posting, ignoring the restrictions on applying rebates, etc. for me the greatest disincentive is the bank issuing the card itself. HSBC SUCKS.

My brother in law is a die-hard Pontiac fan, his father worked at the Edison plant till retirement, so they get the GM Family bonus, plus whatever GM Card bonuses. Sounds good, right ? Twice in the last year or so, when they have had problems with a vendor and called for customer support, they had to jump through endless hoops, spoke with several (ahem) "offshore" people, and in the one case were refused a chargeback on a faulty purchase, absorbing a >$100 loss. The one dispute that was successful required faxing the same paper form multiple times because it kept getting "lost" and literally dozens of phone calls. They would not even process the dispute until the form came in.

A little bit of googling, and you will find that HSBC customers are Number One (i.e Worst) in Identity Fraud. EDIT: http://repositories.cdlib.org/bclt/lts/44/

On the other hand, I have had a few chargebacks in my time, I call Citibank, speak to someone who responds in English, and presto, the dispute and temporary credit is done. Once I document the issue, I have never failed to get a complete refund.

And I get 2% back, on any make of car, new or used.

[377Z]

Originally Posted by Wagon of Fury

I read all these replies before posting, ignoring the restrictions on applying rebates, etc. for me the greatest disincentive is the bank issuing the card itself. HSBC SUCKS.

My brother in law is a die-hard Pontiac fan, his father worked at the Edison plant till retirement, so they get the GM Family bonus, plus whatever GM Card bonuses. Sounds good, right ? Twice in the last year or so, when they have had problems with a vendor and called for customer support, they had to jump through endless hoops, spoke with several (ahem) "offshore" people, and in the one case were refused a chargeback on a faulty purchase, absorbing a >$100 loss. The one dispute that was successful required faxing the same paper form multiple times because it kept getting "lost" and literally dozens of phone calls. They would not even process the dispute until the form came in.

A little bit of googling, and you will find that HSBC customers are Number One (i.e Worst) in Identity Fraud. EDIT: http://repositories.cdlib.org/bclt/lts/44/

On the other hand, I have had a few chargebacks in my time, I call Citibank, speak to someone who responds in English, and presto, the dispute and temporary credit is done. Once I document the issue, I have never failed to get a complete refund.

And I get 2% back, on any make of car, new or used.

My goodness. I just went to the Citibank website & checked out the terms, and the Citibank Driver's Edge card beats the P I S S out of the GM card. I've been using my Discover since giving up on the GM card while mulling over what to get, I think I'm going to compare this to the Discover cash back & see what is better for me.