Open Letter to GM Financial

 

Mr. Daniel E. Berce
President and CEO
GM Financial
801 Cherry Street, Ste. 3600
Fort Worth, TX 76102

Dear Mr. Berce: 

Can I describe a situation to you and ask you to please explain how it makes sense? 

39 months ago, my son leased a new 2020 Bolt from Everett Chevrolet here in Washington state. The lease specified a buyout price of about $21,000. 

Now the lease is up, and he would be interested in buying the car, which, as you probably know, has a current market value of thousands of dollars less than $21,000. 

You could simply be done with this by offering him a fair retail price. But I've been told by both the dealer and your phone rep that this simply isn't possible! What he could do is turn in his current Bolt, and purchase another one at the going price. He would hand over the keys to one Bolt, and drive off the lot with a nearly identical one. 

For no reason!

I asked the dealer's sales manager what will happen to my son's current Bolt after he turns it in. She said it would go to a dealer auction—where you would no doubt sell it for a wholesale price considerably lower than you could sell it to my son at retail. Presumably, if he was willing to wait, he could then buy it back from whichever dealer got it at auction. 

Consider the two scenarios: 

1. How it works now:

• My son returns the car to the dealer. 
• It is sent to the dealer auction (not open to the public, of course).
  
• You receive a wholesale price for the car—several thousand dollars less than the nominal "buyout" price.
  
• Meanwhile, my son buys a similar car at the retail price from a dealer. 

2. How it could work:

• My son pays you retail price and keeps the car. You get more money and less hassle!
  

I understand that GM may have its own internal reasons for operating in this absurd manner. But to any outside observer, this can only be seen as sheer insanity. 

Can you make it make sense? I'd be most grateful. 

Yours very truly, 

Rob Lewis
groblewis@mac.com 

cc via email to Michelle Owen, mowen@chevroletofeverett.com
posted to robrites.blogspot.com