GM launches Vauxhall cashback deal

VauxhallGeneral Motors is aiming to boost customer interest in its Vauxhall cars with an interest-free cashback offer on its new car ranges, despite negative press coverage on its decision to raise prices.

The company will advertise the deal on TV and in press advertising, enticing buyers under the banner “You Pay, We Pay”.

A GM spokesperson says: “Most car buyers are unsure of what the future holds, especially in the current economic recession. You Pay, We Pay means buyers keep their money in the bank to earn interest, along with a 5% cashback payment, which in itself would earn 3% interest at today’s average rate.”

GM says it is the first car manufacturer in the UK to offer cashback to its customers directly. Similar offers have been used by independent dealers in the past, but not from car makers themselves.

The company has been criticised for its decision to increase prices on its ranges by between 3% to 5% this week, despite having received bailout funds in the US and the UK.

GM says the price rises were “compulsory” due to “the falling value of sterling against the Euro”.

The company says it hopes You Pay, We Pay will help to attract customer interest in its ranges once more.

Andy Dunstan, Vauxhall’s retail sales director, says: “In a new car market flooded with the same old deals, You Pay, We Pay is a genuinely fresh approach. With many new car buyers unsure of what the future holds, we felt that Vauxhall needed to raise the bar in the market and offer something extra. The beauty of the deal is not only its simplicity, but the fact that it genuinely puts money back in the pockets of hard-hit consumers.”

The offer echoes similar campaigns in the US offering car swaps and two for the price of one.

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