Can Gm Card Earnings Be Used on a Used Car
- Sauerkraut
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- Jan 4, 2009
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Sep 23rd, 2015 4:10 pm
iExcel wrote: ↑Another drawback of this program is that you need to make a decision 7-10 years, if not longer, ahead of your actual purchase and stick to it, by putting all your expenses on that card. Otherwise, the earned rewards can't be turned into real money.
How did you come up with this timeline??
- #62
- iExcel
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- May 7, 2005
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- Oakville
Sep 23rd, 2015 4:15 pm
- #63
- spike1128
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Sep 23rd, 2015 4:25 pm
iExcel wrote: ↑True but I guess the question is:
How much *higher* the reward can be considered *sufficient* incentive to buy your loyalty to GM? $282 more annually in GM dollars as in my previous example? Obviously, different people have different answers.
Another drawback of this program is that you need to make a decision 7-10 years, if not longer, ahead of your actual purchase and stick to it, by putting all your expenses on that card. Otherwise, the earned rewards can't be turned into real money. So far, the responses on this forum are *maybe* or *almost*. Nobody is 100% sure. Also, who knows what will happen in 7-10 years from now? What if GM becomes the VW of today or the Toyota of yesterday? What if they change the redemption rule? You bet all your rewards on 1 car manufacturer's new vehicles.
Again, how much is your commitment or loyalty to GM worth? I personally don't think it's enough for buy mine, IMHO. :-)
Yup. I may sounded a bit biased, but out of the big 3 I would buy a GM (caddy or corvette) instead of a stang or challenger. Even that I am not sure if I want to get these card. I used to have a GM card, but all those stupid rules change ate into the savings. I heard that the U.S. GM card was so much sweeter in terms of the deals.
- #64
- Sauerkraut
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Sep 23rd, 2015 4:28 pm
All you've done is post articles about average car buyers....this has nothing to do with perceived drawbacks for the GM card and/or how to redeem points. You don't "need" to make a decision in 7-10 years and you don't "need" to put all your expenses on the card.
- #65
- iExcel
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Sep 23rd, 2015 4:32 pm
spike1128 wrote: ↑Yup. I may sounded a bit biased, but out of the big 3 I would buy a GM (caddy or corvette) instead of a stang or challenger. Even that I am not sure if I want to get these card. I used to have a GM card, but all those stupid rules change ate into the savings. I heard that the U.S. GM card was so much sweeter in terms of the deals.
I'm in the same boat. I have owned 2 GM vehicles in the past and am still owning one that I used my GM points for at this moment. (Even my avatar is a Chevy Logo, I don't dislike GM). ;-)
GM has been doing fine with me and I may buy another GM vehicle but I just can't justify such a big commitment for so little incentive. :P
- #66
- iExcel
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Sep 23rd, 2015 4:38 pm
Sauerkraut wrote: ↑All you've done is post articles about average car buyers....this has nothing to do with perceived drawbacks for the GM card and/or how to redeem points. You don't "need" to make a decision in 7-10 years and you don't "need" to put all your expenses on the card.
You asked me where I got these timelines and I posted several links to back up my claim. Is there any problem with that approach?
With an average vehicle ownership about 10 years, according to these articles, can't one reasonably assume that somebody, in average, would need to wait for about 7-10 years before purchasing another vehicle?
If that somebody had a GM card, would he or she want to put the expenses on that card to maximize the rewards?
What could be the reason why that person would want to split the expenses on multiple cards as there is no card on the market that offers higher rate of reward?
Certainly, you can change vehicles as frequently as you want. Of course you don't *need* to, my friend. This is a free country and you're free to do whatever you want. Have a good one.
- #67
- Sauerkraut
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Sep 23rd, 2015 4:49 pm
iExcel wrote: ↑What could be the reason why that person would want to split the expenses on multiple cards as there is no card on the market that offers higher rate of reward?
For the no-fee card 5% is only earned on the 1st $5K annually, after that it's 2%. So one might reach the $5K limit and then start using another card.
- #68
- iExcel
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Sep 23rd, 2015 4:54 pm
Sauerkraut wrote: ↑For the no-fee card 5% is only earned on the 1st $5K annually, after that it's 2%. So one might reach the $5K limit and then start using another card.
Let's do the math:
$5000 @5% = $250 GM dollars annually.
Even if you would have put the $5k on a 1% cash back card, the difference would be $200 annually.
You don't seem to agree with my 7-10 year timeline, so let's assume you change vehicles every 5 years or shorter. So, that would be a difference of $1000 for every 5 years. Well, it might be enough for you to stick to a new GM vehicle every 5 years but it simply isn't enough for me.
- #69
- kool1
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- Mar 22, 2005
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Sep 23rd, 2015 7:39 pm
spike1128 wrote: ↑Yup. I may sounded a bit biased, but out of the big 3 I would buy a GM (caddy or corvette) instead of a stang or challenger. Even that I am not sure if I want to get these card. I used to have a GM card, but all those stupid rules change ate into the savings. I heard that the U.S. GM card was so much sweeter in terms of the deals.
GM Card rewards on the U.S. card is exactly the same as the Canadian card.
https://www.gmcard.com/
- #70
- kool1
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Sep 23rd, 2015 7:44 pm
iExcel wrote: ↑True but I guess the question is:
How much *higher* the reward can be considered *sufficient* incentive to buy your loyalty to GM? $282 more annually in GM dollars as in my previous example? Obviously, different people have different answers.
Another drawback of this program is that you need to make a decision 7-10 years, if not longer, ahead of your actual purchase and stick to it, by putting all your expenses on that card. Otherwise, the earned rewards can't be turned into real money. So far, the responses on this forum are *maybe* or *almost*. Nobody is 100% sure. Also, who knows what will happen in 7-10 years from now? What if GM becomes the VW of today or the Toyota of yesterday? What if they change the redemption rule? You bet all your rewards on 1 car manufacturer's new vehicles.
Again, how much is your commitment or loyalty to GM worth? I personally don't think it's enough for buy mine, IMHO. :-)
Again .. your timeline is arbitrary. I plan on buying in 2 years, not 7-10 years. It's not how often you change cars - it's when you plan on buying, If I can save $1500 in 2 years I would be very happy.
I know you are against this card and that's fine but it is a very rich reward and it work perfectly for me.
- #71
- iExcel
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Sep 23rd, 2015 7:47 pm
kool1 wrote: ↑Again .. your timeline is arbitrary. I plan on buying in 2 years, not 7-10 years. If I can save $1500 I would be very happy.
I know you are against this card and that's fine but it is a very rich reward and it work perfectly for me.
That's great if it works for you.
I'm neither against nor for this card. I just wanted to point out something some people might have overlooked.
- #72
- Kevin2112
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Sep 24th, 2015 8:29 am
Committing to a car 2-3 years ahead is just not that big a deal and if your spending is high you can easily save up $2000-3000 in that time.
I thought about the optimal way to use this card. Certainly want to max out the 5% earnings but after that maybe you move groceries and gas to other cards with better % rewards on those things. New PC card is 3% but you have to commit to Loblaw stores I guess.
- #73
- danibelo
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Sep 25th, 2015 8:22 pm
iExcel wrote: ↑Let's do the math:
$5000 @5% = $250 GM dollars annually.
Even if you would have put the $5k on a 1% cash back card, the difference would be $200 annually.
You don't seem to agree with my 7-10 year timeline, so let's assume you change vehicles every 5 years or shorter. So, that would be a difference of $1000 for every 5 years. Well, it might be enough for you to stick to a new GM vehicle every 5 years but it simply isn't enough for me.
I have CapOne Aspire World Travel Elite MC (the grandfathered version: $120 annual fee minus annual bonus equal to $100, the current version does not have an annual bonus). I get 2% in travel rewards, which can be easily (when accumulated more than $600) converted into flights, hotels, car rentals, etc. The card is excellent and provides all possible insurances, so I will keep it anyway. If I apply for the GM no-fee card, I just will spend $5000 every year on that card and the balance on my Aspire card. So for me the commitment to buy new GM cars (let's assume, I will buy new GM cars anyway) will bring $150 per year ($5000*(5%-2%)=$150).
However, I have other concerns: 1) they can soon reduce the rebate rate to, say, 3% (as TD already did), 2) close the program at all (as CIBC did with their Drivers card), 3) introduce expiration of the points, etc. In these cases my commitment to buy a new GM card can bring me much less than $150 a year and even to push me to buy a new car when I do not need it yet, which will be equivalent to money loss of thousands of dollars. And in these cases I can loose even those two per cent that I would easily earn with my Aspire card... So for me to get this card is not a matter of commitment to buy new GM cars, but if I can trust Scotiabank that during many years they will not change the terms. And most likely in 5, 10, 15 or 20 years they will change the terms and I will need to replace my car when I do not need it. So even if I use the rewards to buy 1 or 2 cars, buying a car when they close the program and push me to buy a car when I do not need it, I probably still will loose the money...
- #74
- mr_raider
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Sep 26th, 2015 10:43 am
Can thé points be used for GM service at dealers?
That way I would see the payout immediately.
Any listing of the benefits? Is this a platinum or infinite level card?
- #75
- Sauerkraut
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Sep 26th, 2015 2:55 pm
mr_raider wrote: ↑Can thé points be used for GM service at dealers?
Only if the "service" involves buying a new car.
- #76
- kool1
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Sep 26th, 2015 3:36 pm
danibelo wrote: ↑I have CapOne Aspire World Travel Elite MC (the grandfathered version: $120 annual fee minus annual bonus equal to $100, the current version does not have an annual bonus). I get 2% in travel rewards, which can be easily (when accumulated more than $600) converted into flights, hotels, car rentals, etc. The card is excellent and provides all possible insurances, so I will keep it anyway. If I apply for the GM no-fee card, I just will spend $5000 every year on that card and the balance on my Aspire card. So for me the commitment to buy new GM cars (let's assume, I will buy new GM cars anyway) will bring $150 per year ($5000*(5%-2%)=$150).
However, I have other concerns: 1) they can soon reduce the rebate rate to, say, 3% (as TD already did), 2) close the program at all (as CIBC did with their Drivers card), 3) introduce expiration of the points, etc. In these cases my commitment to buy a new GM card can bring me much less than $150 a year and even to push me to buy a new car when I do not need it yet, which will be equivalent to money loss of thousands of dollars. And in these cases I can loose even those two per cent that I would easily earn with my Aspire card... So for me to get this card is not a matter of commitment to buy new GM cars, but if I can trust Scotiabank that during many years they will not change the terms. And most likely in 5, 10, 15 or 20 years they will change the terms and I will need to replace my car when I do not need it. So even if I use the rewards to buy 1 or 2 cars, buying a car when they close the program and push me to buy a car when I do not need it, I probably still will loose the money...
When I had the old GM card it was 5% up to $500 and then it went to zero. I stopped using the card once I got to $500. When TD changed it to 3% it was unlimited, $500/ year max was gone.
The U.S. GM Card has been around for a while with the same reward so I'm not concerned they will suddenly change the Scotia card. I think using the free card for just the initial 5% run every year it's a decent strategy. Only have to crank through $5000 a year and in 4 years you would have $1000 for a car by spending $20,000 and some other rewards on other cards as well - say PC card at3%.
- #77
- daikman
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Oct 6th, 2015 5:47 pm
kool1 wrote: ↑When I had the old GM card it was 5% up to $500 and then it went to zero. I stopped using the card once I got to $500. When TD changed it to 3% it was unlimited, $500/ year max was gone.
The U.S. GM Card has been around for a while with the same reward so I'm not concerned they will suddenly change the Scotia card. I think using the free card for just the initial 5% run every year it's a decent strategy. Only have to crank through $5000 a year and in 4 years you would have $1000 for a car by spending $20,000 and some other rewards on other cards as well - say PC card at3%.
I agree with you. Quite a few types of GM vehicles you could spend it on. And it's a much better rate of return for the 1-2% you'll usually get at Costco, etc.
I might grab the Premium version for the first year, get the 5% on 10k, and then downgrade to the free card for the residual. Since after the $55 GCR we are working with a $24 first year fee. I'm going to check with them that the points are just funnelled into a "GM points account" so I can merge the rewards from both cards when I eventually redeem.
- #78
- kool1
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Oct 7th, 2015 1:41 pm
daikman wrote: ↑I agree with you. Quite a few types of GM vehicles you could spend it on. And it's a much better rate of return for the 1-2% you'll usually get at Costco, etc.
I might grab the Premium version for the first year, get the 5% on 10k, and then downgrade to the free card for the residual. Since after the $55 GCR we are working with a $24 first year fee. I'm going to check with them that the points are just funnelled into a "GM points account" so I can merge the rewards from both cards when I eventually redeem.
My plan is to go hard for 2 years. My plan is to buy in the fall of 2017 as I usually drive my cars 8 years (at least that's what I have done with the last 2 I have had). I'm sure I will get to somewhere around $1500.
Not sure that you will be allowed to merge points from 2 cards - I would call before you try that.
- #79
- zobi123
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Nov 8th, 2015 6:52 pm
Can you still negotiate the price of the car and use the rewards on top?
- #80
- dutchca
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Nov 8th, 2015 8:26 pm
zobi123 wrote: ↑Can you still negotiate the price of the car and use the rewards on top?
Yes. Dont reveal you have points until after negs finished to make sure.
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Can Gm Card Earnings Be Used on a Used Car
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