2006 Model Year Saturn Vehicle Exchange Program

Important: This service bulletin is not applicable to Saturn Retailers in Canada.

Saturn currently offers a Vehicle Exchange Program (VEP) on eligible 2006 Saturn vehicles. The purpose of this bulletin is to highlight the disclosure process and administrative processes for paying claims.

At the time of the original sales transaction, the Retailer must complete a Saturn Vehicle Exchange Program Sales Transaction Form (Attachments 1 and 2). This form should be completed for every new vehicle sold and must be signed by the Purchaser/Lessee to avoid misunderstanding if the Purchaser/Lessee decides to return the vehicle. The Sales Transaction Form documents that the customer agrees to the Vehicle Exchange Program provisions and vehicle eligibility status. Retailers must retain the bottom copy of this form with other vehicle purchase documentation.

1. Verify Eligibility

Before a customer exchanges a vehicle under the Vehicle Exchange Program, the Retailer must verify that the vehicle and owner are eligible for exchange by calling the Saturn Customer Assistance Center (1-800-828-2112, prompt 6). Vehicle eligibility cannot be verified until the original retail/lease delivery is accepted. To avoid a processing delay, always confirm that the vehicle is reported delivered in EDSNET prior to calling the Saturn Customer Assistance Center.

2. Customer Returns Vehicle For Exchange

Vehicles must be exchanged at the original selling Retailer or the Retailer from whom the owner took delivery, if different (e.g. courtesy delivery), and be accompanied by all purchase transaction documents including the sales contract/lease agreement, license, registration, an odometer statement signed by the customer and a signed free and clear title or equivalent (e.g. Power of Attorney, Correction of Title, Statement of Fact, etc.).

Ownership of the returned vehicle reverts back to the selling Retailer.

If a customer elects to exchange a vehicle under the Vehicle Exchange Program and order a replacement vehicle instead of buying/leasing one from Retailer inventory, Saturn will NOT provide alternate transportation nor allow the customer to keep the original Saturn while the replacement vehicle is on order.

3. Inspect Vehicle

Any vehicle exchanged under the Vehicle Exchange Program must be inspected by the Retailer for damage and excessive wear and tear. If non-warranty repairs equal to or greater than $300.00 have been performed or are necessary, the vehicle is not eligible to be exchanged. If the repairs are less than $300.00, the damage repair estimate will be deducted from the exchanged vehicle transaction.

The determination of the value of any non-warranty repairs and any disputes that arise regarding said value are solely the responsibility of the selling Retailer.

4. Complete the Vehicle Exchange Worksheet (Attachments 3 and 4)

The Retailer must completely fill out ALL information in a legible manner on the Vehicle Exchange Worksheet and calculate the Retail Reimbursement claim amount on the bottom copy.

Saturn will reimburse the Retailer the following amounts after an exchanged vehicle has been properly disclosed to the second retail purchaser and the signed disclosure has been received by the Vehicle Exchange Team:

•	Program Allowance = $850 for ION or $1100 for VUE and Relay

•	Original sales tax, title and license fees, only if the fees are not transferable to the replacement vehicle and are not recoverable from a government agency or subsequent purchaser of the vehicle. It is the responsibility of the Retailer to secure a refund of such fees.

•	Original finance/lease contract cancellation charges assessed by the financial institution if the financial institution will not put the customer in a new lease at no charge (up to a maximum of $550.00). The Retailer will need to provide Saturn with documentation showing the cancellation fees

•	Saturn will not reimburse the Retailer for the following items and these charges must not be passed on to the customer:

•	Tax, title, registration, or licensing fees refundable by a government agency.

•	Retailer administration, documentation, and/or add-on fees.

•	Loan origination fees from Retailer assisted financing.

•	The completed worksheet must be signed by the customer and Retailer representative and the top copy should be given to the customer. Retailers must fax the completed bottom copy of the Vehicle Exchange Worksheet to the Vehicle Exchange Team at (931) 486-7970.

•	The printed worksheet shall not be altered at any time or in any way by the retailer in an effort to make a customer eligible or ineligible under the parameters of the Vehicle Exchange Policy

5. Determine Vehicle Disposition

When a vehicle is exchanged under the Vehicle Exchange Program, the Retailer must keep the vehicle for resale unless Saturn decides the vehicle needs to be returned for technical reasons. Vehicles retained by the Retailer for resale are considered USED vehicles and should be certified after passing the Saturn Certified Used Car Inspection.

6. The Vehicle Exchange Team sends a Saturn Disclosure of Vehicle Exchange Repurchase or Reacquisition Notice (Attachment 5) to the Retail Facility

The Vehicle Exchange Team will complete and send via facsimile the Disclosure Notice to the Retail Facility once the completed and signed Vehicle Exchange Worksheet is received. In some cases, individual states may require the manufacturer to notify the state and/or prepare state specific owner disclosures. The Vehicle Exchange Team will communicate these requirements to the Retail Facility as appropriate. It is imperative that Saturn receives the Vehicle Exchange Worksheet as soon as possible so the Disclosure Notice(s) can be processed.

7. Disclose Status of Vehicle to Second Retail Purchaser

Saturn requires that each retail facility utilize the Disclosure of Vehicle Exchange Repurchase or Reacquisition Notice when selling an exchanged vehicle to the second retail purchaser. The program also stipulates that upon resale, the retail facility must provide a copy of the signed Disclosure Notice to the Vehicle Exchange Team. It is mandatory that all vehicles involved in the Vehicle Exchange Program be properly disclosed to the second retail purchaser. Disclosure generally is required by law, and non-disclosure at the time of vehicle resale may lead to owner dissatisfaction. For this reason, Saturn will participate financially in the exchange of an eligible vehicle only after the retail facility provides a copy, signed by the second retail purchaser, of the Disclosure of Vehicle Exchange Repurchase or Reacquisition Notice, to the Vehicle Exchange Team at the following address:

Saturn

Attn: Vehicle Exchange Team

P.O. Box 1500 MD: S23

Spring Hill, TN 37174

FAX: (931)486-7970

If the Disclosure Notice is not completed properly and signed by the second retail purchaser, Saturn will not participate financially in the original Vehicle Exchange.

Important: Any disclosure that does not originate from the Vehicle Exchange Team and/or the Vehicle Exchange Coordinators is not acceptable for use. This includes, but is not limited to, hand-written disclosures, signed sales transaction forms, and "Statement of Facts" documents. All disclosures must originate from the Vehicle Exchange Team and bear the signature of one of the Vehicle Exchange Coordinators.

8. Report the New Delivery in EDSNET

When a vehicle is exchanged under the Vehicle Exchange Program, DO NOT CANCEL OR REVISE THE FIRST DELIVERY RECORD . This would result in a loss of the first owner record and prevent processing the Retailer allowance for the first owner’s exchange of the vehicle. The sale of the vehicle to the second owner is to be reported as "retail used." The Retailer must submit an original delivery record utilizing "O" transaction code, with a delivery type "RU" (retail used). DO NOT REPORT THE SECOND DELIVERY UNTIL THE SATURN CUSTOMER ASSISTANCE CENTER APPROVES THE VEHICLE EXCHANGE AND PROVIDES AN AUTHORIZATION NUMBER.

9. Submit Claim for Payment

After faxing the properly signed Disclosure Notice , Retailers should submit a Customer Service Order (CSO) to Saturn in order to receive the appropriate allowance under the Vehicle Exchange Program. VEP claims will not be paid unless the steps outlined in the Vehicle Exchange Process section have been completed.

All necessary vehicle information normally entered on a CSO (e.g. VIN, mileage, customer name, etc.) must be included. In addition, the customer’s reason for exchange and the Saturn Customer Assistance Center’s authorization number (entered in the technician comments) must also be included.

The replacement VIN must also be entered on the form.

The case detail information for the transaction consists of the following (see the table below):

10. Initiate Follow-Up Process on all Outstanding Disclosure Notices

If a completed Disclosure Notice has not been received by the Vehicle Exchange Team upon Saturn’s notification of the vehicle resale via EDSNET, the follow-up process will be initiated. Retailers with questions regarding the legal requirements of disclosure should consult with their attorney.

* Zero (0) labor hours must be entered by the Retail Facility's biller/cashier when the claim is submitted.

Saturn will continue to utilize a follow-up process to help ensure retail facilities utilize the Disclosure Notice and obtain the appropriate Vehicle Exchange Program allowance from Saturn. This 3-step process will span a maximum of 4 weeks duration.

The new follow-up process begins when the Vehicle Exchange Team receives notification of a vehicle resale via EDSNET and is outlined below:

Reminder of Eligibility:

Step 1: EMAIL the facility to the Sales Manager’s attention

The Vehicle Exchange Team will allow two weeks after Step 1 to receive the signed Disclosure Notice before taking the following action:

Disclosure Not Returned:

Step 2: MAIL letter to the Retail Operator’s attention and

CALL the Sales Manager or General Manager at the facility and

EMAIL the facility to the Sales Manager’s or General Manager’s attention and carbon copy the Facility Consultant, Marketing Area Manager, and Regional Business Operations Manager.

The Vehicle Exchange Team will allow another two weeks after Step 2 (four weeks from resale) to receive the signed Disclosure Notice before taking the final step:

Final Reminder Disclosure Not Returned:

Step 3: MAIL letter to Retail Operator’s attention and

CALL the Sales Manager or General Manager at the facility and

EMAIL the facility to the Sales Manager’s or General Manager’s attention and carbon copy the Facility Consultant, Marketing Area Manager, and Regional Business Operations Manager.

If proof of proper disclosure is not provided after this four-week follow-up period, no further contacts will be made by the Vehicle Exchange Team and Saturn will not participate financially in the exchange of that vehicle until a signed disclosure is received.

Note: After the Centralized Saturn Retail System is operational for all retail facilities on August 1, 2004; all follow-up activity will be conducted via telephone and e-mail only.

Attachments 6 and 7 list answers to some "Frequently Asked Questions" regarding the Vehicle Exchange Program. If you have any additional questions regarding this bulletin or the Vehicle Exchange Program, please contact the Vehicle Exchange Team at 1-800-828-2112, prompt 6, prompt 2.

Saturn's Vehicle Exchange Program Frequently Asked Questions (Attachment 6)

1. If the customer purchases a 2005 Saturn vehicle under a particular Saturn initiative, can he/she exchange the vehicle for a more lucrative program? Ex. Customer purchases a Saturn vehicle under a 3.9% interest rate and Saturn’s initiatives change providing a 0% rate within the customer’s Vehicle Exchange parameters.

Answer: No. Vehicles cannot be exchanged solely due to a change in factory initiatives.

2. If the customer exchanges his/her 2006 Saturn vehicle, what initiatives would he/she be eligible for at the time of new delivery?

Answer: The customer will be eligible for the factory initiatives that were available at the time of the original vehicle purchase.

3. Will the customer be responsible for additional costs for a Saturn vehicle upgrade?

Answer: Yes. If the replacement vehicle is more expensive than the original vehicle being exchanged, the customer is responsible for the difference in the price. This may require additional cash from the customer or result in a higher monthly payment if financed or leased. If the vehicle is less expensive, the customer may be eligible for a refund or a lower monthly payment depending on the contract.

4. Can a Saturn vehicle be exchanged with Saturn retailer-installed accessories (RIA) installed by the Retailer or sublet by the Retailer?

Answer: Yes. If the original vehicle being exchanged has Saturn RIAs, the Retailer will equip the replacement vehicle with the same RIAs.

5. Can a Saturn vehicle be exchanged with non-Saturn aftermarket accessories?

Answer: No. Vehicles installed with non-Saturn aftermarket accessories (e.g. radio or alarm system) are not eligible for the Vehicle Exchange Program unless the accessories were installed by a Saturn Retailer.

6. If a customer opts to exchange his/her Saturn vehicle and orders a replacement vehicle, will Saturn provide the owner with a rental while he/she waits for the replacement vehicle?

Answer: No. If a customer elects to exchange a vehicle under the Vehicle Exchange Program and order a replacement vehicle instead of buying/leasing one from Retailer inventory, Saturn will NOT provide alternate transportation nor allow the customer to keep the original vehicle while the replacement vehicle is on order.

7. If a customer purchases a 2005 Saturn vehicle under the 2006 Vehicle Exchange Program and chooses to exercise his/her right to return their vehicle, is he/she eligible to exchange a 2005 model vehicle under the 2005 Vehicle Exchange Program?

Answer: Yes. Customer eligibility for the Vehicle Exchange Program is limited to one vehicle per model year. Therefore, a customer who previously returned a 2005 Saturn under the terms of the 2005 Vehicle Exchange Program remains eligible to exchange one 2006 Saturn under the provisions of the 2006 program.

8. What date does the Vehicle Exchange Program begin for the customer?

Answer: The Vehicle Exchange Program begins on the date the customer signs the sales transaction form (the delivery date) on the initial Saturn vehicle.

9. What date is used on the new contract for the replacement vehicle?

Answer: The current date is used on the replacement vehicle contract.

10. Are the incentives that were available on the original vehicle still available on that vehicle once it has been returned?

Answer: Refer to the bulletin for each specific incentive. The bulletin will list eligibility for that specific incentive.