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Link: http://www.autonews.com/apps/pbcs.dll/article?AID=/20081017/ANA05/810175652/-1/RSS31&rssfeed=RSS31

Article quote:

Chrissie Thompson - Automotive News - October 17, 2008 - 2:58 pm ET

Two Texas dealers are trying to turn General Motors' low stock price into profits: They're offering customers 50 GM shares to buy a new GM vehicle by the end of the month.

Sibling dealers Will and Corrie Churchill, who own Frank Kent Motor Co. in Fort Worth, Texas, began their promotion this week and will offer it to the first 100 customers "because this is GM's 100-year anniversary," Will Churchill said.

But the stock offer is more than an anniversary celebration.

The Churchills bought 5,000 shares of GM stock at the end of last week to begin the promotion while GM's stock price was low. The gift was worth $336 today at GM's midafternoon stock price of $6.72, and the Churchills hope to give customers a return on their investment.

"Typically when a customer buys a car and they go to trade it in in two or three years, it has depreciated," Will Churchill said. "Hopefully in two or three years," GM stock "will probably be worth more."

Four customers have taken advantage of the deal, citing the stock gift as a deciding factor, he said. The Churchills hope more will follow. The dealership typically sells 80 vehicles in a 15-day period.

Britt and Mary Lambert, of Springtown, Texas, had considered buying a new vehicle for about a year. This week, they bought a GMC Acadia crossover under the Churchills' promotion because of the stock offer, Mary Lambert said.

"Somebody wants to give me stock, I'll take it," she said. "I have faith in the stock market. And even if we lose money, it's not going to cost us anything."


Full article at link.
 

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I think it's a pretty good idea to tell you the truth. After GM brings back their dividends (I'm pretty confident that they will eventually) it will be the rebate that keeps on giving. It's also pretty neat to own part of the company that built your car. It kind of gives the customer a more meaningful relationship with their vehicle. This type of promotion would not be a deciding factor for me buying a vehicle but it would sure make me respect the dealer and GM more.
 

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Scam. a whopping $300 and its added in somewhere. Big deal.
But unlike your generic mainstream vehicle which can only see a decrease* in value you at least have the chance of your shares increasing in value.
(* assuming some celebrity doesn't die in it or something)

So if your 50 shares manage to increase in value to say $20 you don't make that much money but at the same time you aren't out any money if GM were to go out of business.

Kudos to the dealer for doing something different.
 

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I don't see this is a scam... haggle a reasonable price that you're happy paying for your vehicle, and get 50 shares of stock on top of the deal. They're not hiding anything... don't agree to buying the vehicle if you feel that it's $300 too much. I agree with jbernie and squat... it's a creative idea.
 

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would generate more traffic offering put options.

anyway, God bless the guy for trying.
 

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I think its a great Idea, it's the one thing that could increase in value, and I believe will.
long term, I agree with clownzilla and jbernie
 

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would generate more traffic offering put options.

anyway, God bless the guy for trying.
What's a put option?

Did you mean putt option? Like on Price is Right, where you get to putt a hole-in-one to try and win a prize?



Joking, of course :) I really dion't know what a put option is though.
 

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No thanks... I'll take the toaster instead.

It'll be worth more in 5 years than GM stock.:D
Yea and if people like you would get rid of your damn Hondas, Toyotas and Nissians and take a good look at the quality GM vehicles built today, maybe GM wouldn't be in some of the mess they are in.

I'm simply amazed at the number of non GM people on this forum, that don't care about GM and don't support GM, but are here anyway. Why don't you go support a forum for the products you do buy.

Kudos to the dealer in TX for trying something different.
 

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What's a put option?

Did you mean putt option? Like on Price is Right, where you get to putt a hole-in-one to try and win a prize?



Joking, of course :) I really dion't know what a put option is though.
basically it's a bet that the stock will drop within a certain time frame. if it does you make money, the more it drops the more you make. if it doesn't your option expires worthless.
 

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Kudos to the dealers.

It's original and even if the shares are worth nothing in a year or two what are you out? What you lost on a new vehicle anyways.

It's a win win. Not only in the sale of a new car but a small investment into the company as well.

I wonder what this program would do the value of the stock if GM did this with all new GM vehicles sold?
 
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