MONEYBACK GUARANTEE PROGRAM POLICIES AND PROCEDURES
SUBJECT: 1997 Moneyback Guarantee Program Policies and Procedures --------------------------------------------------------
ALL RETAIL PERSONNEL SHOULD READ THIS BULLETIN AND BE FAMILIAR WITH THE 1997 MONEYBACK GUARANTEE PROGRAM. BEING KNOWLEDGEABLE AND FOLLOWING PROCEDURES CORRECTLY WILL ASSIST RETAILER AND SATURN EFFORTS TO ADMINISTER THIS PROGRAM EFFECTIVELY AND HELP ACHIEVE ITS PURPOSE OF PROVIDING AN ENHANCED BUYING OR LEASING EXPERIENCE.
Saturn offers a Moneyback Guarantee on. eligible 1997 Saturn vehicles. An owner can either purchase or lease another new Saturn receive a refund of the amount paid toward the purchase or lease of the original Saturn. The 1997 Moneyback Guarantee Program is identical to the 1996 Program so:
* Retailers will continue to be compensated a flat fee of $500.00 for each vehicle returned, and
* Retailers must continue to retain all returned vehicles unless Saturn decides a vehicle needs to be returned to Saturn for technical reasons.
New Sales Transaction Return Forms and Vehicle Return Worksheets have been developed specifically for the 1997 Program since certain program provisions are model year specific. Please continue to use your existing forms for 1996 models. Additional 1997 forms may be ordered from Saturn Publications at 1-800-828-2112, prompt 3.
Program parameters remain the same; however, the administrative policies and procedures have been enhanced. Please review this entire bulletin.
This bulletin provides the following policies and procedures for the Saturn 1997 Moneyback Guarantee Program:
* Overall policies and procedures (Bulletin pages 1-7) * Summarized instruction page and reimbursement process flow chart (Attachment A) * 1997 Sales Transaction Form (Attachment B) * 1997 Vehicle Return Worksheet (Attachment C) * Examples of completed forms (Attachments D- I and D-2)
VEHICLE ELIGIBILITY
Eligibility
* All new and unused 1997 Saturn vehicles returned by the retail purchaser/lessee within the first 30 days or 1500 miles of delivery, whichever comes first (includes retail leased vehicles). Retail leased vehicles are eligible under the Moneyback Guarantee Program when leased through GMAC or other lease companies.
* The vehicle must currently be owned or leased by the original retail purchaser/lessee.
* The vehicle must be returned in the condition in which it was delivered to the customer, without damage or excessive wear and tear.
* Customer eligibility for the Moneyback Guarantee Program is limited to one vehicle per model year. Therefore, a customer who previously returned a 1996 Saturn under the terms of the 1996 Moneyback Guarantee Program remains eligible to return one 1997 Saturn under the provisions of the 1997 program.
Exclusions
* Fleet purchases and fleet leases.
* Vehicles used for livery, taxi, or delivery services.
* Vehicles previously returned under the Moneyback Guarantee Program.
* Customers who have previously returned a vehicle under the 1997 Moneyback Guarantee program.
* 1997 vehicles acquired in exchange for 1996 vehicles returned under the 1996 Moneyback Guarantee Program.
* Vehicles that have had non-Saturn aftermarket accessories installed (e.g., radio or alarm system) unless performed or sublet by a Saturn Retailer.
* Vehicles used for Saturn/GM company use.
* Retailer owned used/demonstrator vehicles.
* Vehicles which are "spot" delivered pending financial approval, then returned because the customer could not obtain financing.
* Vehicles acquired in a transaction other than retail purchase/lease.
SALES TRANSACTION PROCESS
Valuation of Trade-in Vehicle
At the time of the original sales transaction the Retailer must complete a Saturn Moneyback Guarantee Sales Transaction Form (refer to Attachment B for a sample form and instructions for completion on the reverse side of second copy). It is required that the vehicle purchaser or lessee sign this form in order to avoid any unnecessary problems or misunderstanding if the purchaser or lessee decides to return the vehicle. This form documents that the customer understands and agrees to the Moneyback Guarantee Program provisions (or understands why the vehicle is not eligible) and also agrees to the trade-in value. Retailers must retain their copy of this form with other vehicle purchase documentation.
If the customer trades in their current vehicle as part of the new vehicle purchase or lease transaction, the trade-in value is applied toward the purchase/lease price of the new Saturn. This trade-in value is established and agreed upon by the customer and the Retailer when the new Saturn vehicle is purchased/leased. (This trade-in value is important, since the vehicle the customer traded in may not be available to the customer if the customer uses this Program.)
If a customer returns an eligible vehicle under the Moneyback Guarantee Program, the previously 'Agreed Upon Trade-in Value' (line 3) will be used in determining the customer's refund/credit. Make sure that line 3 accurately reflects the true cash value of the trade in.
Negative Equity Trade-in Situations
In some instances, a customer may desire to trade-in a vehicle whose value (according to published used car guides, such as NADA, etc.) may be less than the lien amount due on that vehicle. In such a case, the customer has a negative equity trade-in, or what is commonly called an "upside-down" trade-in.
Some banks or financial institutions may not accept a negative equity trade-in as part of a new vehicle sale they are financing or leasing. As a result, some automobile dealers "over allow" on the trade-in (offer the customer a trade-in allowance amount which is greater than the appraised value) to disguise the negative equity trade-in situation in the financing arrangement. In these instances, some dealers increase the sales price of the vehicle to:
1. Offset the negative equity situation on the trade-in to ensure a viable gross profit opportunity on the transaction; and,
2. Provide some form of financial protection in case they ultimately sell the trade-in vehicle with the "over allowance" for less than their cost.
Saturn cannot recommend that Retailers enter into the practices above. Following such practices could subject a Saturn Retailer to monetary risk and uncertainties if a Saturn customer returns a vehicle under the Moneyback Guarantee Program. The responsibility for any such financial exposure resides with the Saturn Retailer.
Saturn's financial participation in a vehicle returned under the Moneyback Guarantee Program is outlined in this bulletin. Saturn's financial responsibility is limited to the Program allowances and Retailer vehicle price if Saturn decides the vehicle needs to be returned to Saturn, and does not include an amount inflated by any trade-in "over allowance."
CUSTOMER REFUND PROVISIONS
Saturn will refund the sales tax, title and license fees on the returned vehicle only if the Retailer and the customer are unable to recover the tax and fees from the proper government agency or subsequent purchaser of the vehicle. State laws vary; however, it is customary that sales tax, title and license fees are recoverable.
Saturn will refund administrative charges (including any prepayment penalty) for the original vehicle financing, but not the interest due at the time of return (refer to Retailer Compensation on page 6 for what Saturn will reimburse to Retailers). The customer is responsible for any interest and principle balance due so that free and clear title or equivalent (e.g., Power of Attorney, Correction of Title, Statement of Fact, etc.) can be provided to the Retailer.
When a customer returns a leased vehicle under the Program and obtains another new Saturn many lease companies, including GMAC, will either execute a substitution of collateral or will cancel the original lease and put the customer in a new lease without assessing cancellation charges. However, if the customer decides to return the leased vehicle for a refund, there may be charges associated with cancellation of the lease. These charges are refundable by Saturn up to a maximum of $550.00. Charges in excess of $550.00 are the responsibility of the Retailer and must NOT be passed on to the customer. Documentation of such charges must be retained at the retail facility with the other vehicle purchase documentation and faxed along with the Moneyback Worksheet to Saturn.
The purchase price of any Saturn Service Plan or Retailer installed Saturn accessories purchased by the customer will be refunded. NOTE: Saturn Service Plans are automatically cancelled once the Moneyback Customer Service Order (CSO) has been paid.
If the Retailer sells a non-Saturn Service Plan to the customer, the Retailer is responsible for providing the customer a full refund. If the customer independently purchases a service plan, the customer is responsible for obtaining any refund.
The Retailer is responsible for refunding the customer's purchase price of non-Saturn aftermarket accessories (e.g., radio or alarm system) installed or sublet by the Retailer. Vehicles equipped with non-Saturn aftermarket accessories must be retained for resale by the Retailer unless Saturn decides the vehicle needs to be returned to Saturn.
The Retailer is also responsible for refunding any other miscellaneous Retailer charges, such as documentation fees (refer to Retailer Compensation on page 6 for what Saturn will reimburse to Retailers).
Vehicle insurance and credit life insurance and/or disability insurance are separate transactions from the vehicle purchase or lease transaction. Any insurance related expenses are the sole responsibility of the customer.
VEHICLE RETURN PROCESS
Eligible Verification
When a customer seeks to return a vehicle under the Moneyback Guarantee Program the Retailer must FIRST verify that the vehicle is eligible for return by contacting the Saturn Customer Assistance Center (1-800-828-2112, prompt 6) to ensure that neither the person nor the vehicle have been involved in a prior vehicle return under the 1997 Program.
NOTE: A vehicle cannot be verified as eligible until the original retail or lease delivery has been accepted. To avoid a delay in processing the vehicle return, always verify that the vehicle has been reported delivered prior to calling the Assistance Center.
Delivery Reporting
When a vehicle is returned under the Program, DO NOT ATTEMPT TO CANCEL or revise the first delivery record. This would result in a loss of the first owner record and prevent processing the Retailer credit for the first owner's/lessee's return of the vehicle. The sale of the vehicle to the second owner is to be reported as "retail used." This means the Retailer must submit an original delivery record utilizing "O" transaction code, with a delivery type of "RU" (retail used), DO NOT REPORT THE SECOND DELIVERY UNTIL THE SATURN CUSTOMER ASSISTANCE CENTER APPROVES THE MONEYBACK AND PROVIDES A CASE NUMBER.
Transaction Documents Required
Vehicles must be returned to the original selling Retailer, or the Retailer from which the owner took delivery, if different (e.g., courtesy deliver), and be accompanied by all purchase transaction documents, including the sales contract or lease agreement, license and 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.) must accompany the transaction.
There may be instances when the customer elects to return a vehicle under the Moneyback Guarantee Program and order a replacement vehicle instead of buying or leasing one out of Retailer inventory. IN THESE CASES, SATURN WILL NOT PROVIDE ALTERNATE TRANNSPORATION OR ALLOW THE CUSTOMER TO KEEP THE ORIGINAL SATURN VEHICLE, WHILE THE REPLACEMENT VEHICLE IS ON ORDER. ONCE THE MONEYBACK CSO HAS BEEN PAID BY SATURN, OWNERSHIP OF THE RETURNED VEHICLE REVERTS BACK TO THE SELLING RETAILER.
If a Saturn/GM employee or eligible family member returns a vehicle purchased under the GM Option 2 Program and the customer received GM purchase allowance payment in cash from the Retailer, the Retailer is responsible for collecting the allowance amount from the purchaser or lessee. However, regardless of whether Option 2 allowance was paid to the purchaser/lessee in cash or applied to the down payment, this amount will be debited to the Retailer. (SATURN CREDITS OPTION 2 ALLOWANCES DIRECTLY TO THE RETAILER ON THE OPEN ACCOUNT ONCE THE MONEYBACK CSO HAS BEEN PAID.)
Vehicle Inspection
Any vehicle returned under the Moneyback Guarantee 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 returned. If less than $300.00, the damage repair estimate will be deducted from the credit amount due the customer.
Completing the Vehicle Return Worksheet
To receive credit for the Moneyback Guarantee Program transaction, the Retailer must complete the Moneyback Guarantee Vehicle Return Worksheet (refer to Attachment C for a sample form with instructions for completion on reverse side of second copy) and initiate a Customer Service Order (CSO) for processing. The Worksheet is a two-copy form with the customer refund/credit and payoff information on both the first and second copy and the Retailer credit information included on the second copy only.
The Retailer must review the worksheet with the customer to assure the customer that the refund/credit is correct. The customer and Retailer representative MUST sign the worksheet and the top copy should be provided to the customer.
Complete the Worksheet and then initiate a Customer Service Order (CSO) for your Moneyback claim. ENTER THE CSO# AND THE SATURN CUSTOMER ASSISTANCE CENTER'S CASE NUMBER ON THE WORKSHEET AND FAX PAGE 2 TO THE SATURN MONEYBACK COORDINATOR (615-486-7970). To eliminate fax cover sheets, a number of the individual at the retail facility who should be contacted for follow-up in this box). At this time, also submit the CSO to Saturn. The Moneyback Coordinator will review the Worksheet and approve the CSO or contact the individual at the retail facility if there are any questions concerning the Worksheet.
Customer Refund/Credit ----------------------
If the customer requests a refund and the procedure described in this bulletin has been completed, the Retailer should issue the customer a check for the refund amount as determined on the Vehicle Return Worksheet. If the customer purchases another new Saturn, the refund/credit amount may be applied to the new transaction.
Vehicle Disposition
When a vehicle is returned under the Program, the Retailer must keep the vehicle for resale unless Saturn decides the vehicle needs to be returned due to technical reasons.
In these situations, the Retailer will be contacted by the Retail Reimbursement Team regarding specific arrangements for returning the vehicle as well as crediting the Retailer for the vehicle.
NOTE: Vehicles retained by the Retailer for resale are considered to be USED vehicles and are eligible to be certified after passing the 150 point certification inspection, but do not qualify for sale to Saturn/GM employees under the Option I or Option 2 Employee Purchase Programs.
Retailer Compensation
Saturn will reimburse the Retailer for the following when a customer returns a vehicle under the Moneyback Guarantee Program:
* Program Allowance - $500.00.
* Sales tax, title and license fees (only if not recoverable from the proper government agency or subsequent purchaser of the vehicle). It is the responsibility of the Retailer and the customer to attempt to secure a refund of such fees.
* Finance/Lease contract cancellation charges (include lease acquisition fee and lease end charge) assessed by the Finance/Lease institution up to a maximum of $550.00.
Saturn will not reimburse the Retailer for the following items. These charges MUST not be passed on to the customer:
* Tax, title, registration, or licensing fees refundable by the State.
* Retailer administration/documentation/add-on fees.
* Loan origination fees from Retailer-assisted financing.
RETAILER CREDIT SUBMISSION
To receive the appropriate credit when a vehicle is returned under the Program, the Retailer must submit a Customer Service Order (CSO) to Saturn. Claims for Retailer credit cannot be paid unless the steps outlined in the Vehicle Return Process Section have been completed All necessary vehicle information normally entered on a CSO (VIN, mileage, customer name, etc.) must be included. ADDITIONALLY, THE CUSTOMER'S REASON(S) FOR RETURN (e.g., PERFORMANCE, COLOR, ETC).AND THE SATURN CUSTOMER ASSISTANCE CENTER'S CASE NUMBER MUST BE ENTERED IN THE TECHNICIAN COMMENTS AREA OF THE CSO. THE RETURN REASON(S) MUST ALSO BE DETAILED ON THE VEHICLE RETURN WORKSHEET.
The case detail information for the transaction will consist of the following:
Labor Sale Case Operation Labor Net Type Type Code Hours Item Net Item Code Repair Date ---- ---- --------- ----- ---- ------------- -----------
WB MB T9575 O* Dollar value R Date vehicle from Worksheet was returned (Line Q)
* Zero (0) labor hours must be entered by the Retailer biller/cashier when the claim is submitted.
NOTE: Complaint and cause codes are no longer required for Moneyback CSOS.
General Motors bulletins are intended for use by professional technicians, not a "do-it-yourselfer". They are written to inform those technicians of conditions that may occur on some vehicles, or to provide information that could assist in the proper service of a vehicle. Properly trained technicians have the equipment, tools, safety instructions and know-how to do a job properly and safely. If a condition is described, do not assume that the bulletin applies to your vehicle, or that your vehicle will have that condition. See a General Motors dealer servicing your brand of General Motors vehicle for information on whether your vehicle may benefit from the information.
