GM Vehicle Buyback Policy – For Bankrupt Dealers

Robert Farago
by Robert Farago
gm vehicle buyback policy for bankrupt dealers

DATE: March 3, 2009 GM 09-03

TO: All General Motors Dealers & Saturn Retailers

FROM: Jim Bunnell, Executive Director, NA Vehicle Sales, Service & Marketing

SUBJECT: Vehicle Buyback Policy

…This letter also communicates GM’s policies for the repurchase of light and medium duty new vehicle inventory (herein after motor vehicles) upon the termination of a GM Dealer or Saturn Retailer (herein after “Dealer”) when there is no replacement Dealer. GM’s repurchase obligations are outlined in Article 15 of the General Motors Dealer Sales & Service Agreement and Article 21 of the Saturn Retailer Agreement (herein after “Dealer Agreement”). This bulletin provides the specific definition of “current model year” as referenced in the Dealer Agreement and outlines specific procedures for vehicle repurchases under both Articles. This letter does not replace, modify or alter the terms of the Dealer Agreement, and implementation of these policies is subject to applicable law.

GM’s policies applicable to vehicle repurchases are provided below:

* GM will repurchase new, unused, undamaged, and unaltered motor vehicles of the current model year purchased by Dealer from General Motors

* GM will repurchase new, unused, undamaged, and unaltered motor vehicles of the previous model year purchased by Dealer from General Motors if purchased within 120 days before the effective date of termination. (Does not apply to Saturn vehicles because the Saturn Retailer Agreement provides for repurchase of qualified “current” model year vehicles only)

* New motor vehicles are defined as unused, unaltered, and undamaged vehicles that have 300 or less odometer miles at the time of inspection.

* Vehicles “not” eligible for repurchase:

Vehicles with damage that is either in excess of $200, or that which requires disclosure under state law (whether the damage has been repaired or not)


Driver Training vehicles

Special event vehicles

Vehicles that have been upfitted or modified, including the installation of non-GM accessories

Vehicles acquired from other GM dealers (dealer trades)

* Vehicles will be repurchased at prices equal to the net prices and charges that were paid to General Motors.

* Dealer is responsible for delivering the eligible vehicles to a destination determined by GM that is paved, lighted, provides 24 hour security, and is in reasonable proximity to the dealership premises (preferably a GM Auction Site). Vehicles will be inspected at this location, and therefore must be clean so as to allow for visual inspection.

* Payment will be made by GM as soon as practical following inspection. See Article 15.2.3 of the Dealer Agreement for further details.

Questions regarding the matters covered in this letter should be directed to your Zone Manager.

Join the conversation
2 of 12 comments
  • Robert.Walter Robert.Walter on Mar 04, 2009

    Based on the interesting, but diversionary, commentary by Flashpoint, I guess I'm more convinced than ever that he's Rick Waggoner. ;O) By the way, the GM lawyers might check their dictionaries, I believe "hereinafter" is one word. Oh, and for those that speak german, and know what the word "After" means, in this memo, the term hereinafter, reminds one of getting the GM shaft.

  • on Mar 05, 2009

    [...] bad is it on the ground? At The Truth about Cars, you can see the latest memo from GM to its dealers, detailing how the company plans to buy back [...]

  • ToolGuy Last ad: Is that The Dude doing the voiceover at the end? 😉
  • ToolGuy Nice paint!!Too young to die.
  • David S. For a single quarter, only ninth best-selling (estimated?) of 2022. Maybe ICE vehicles would sell at a similar rate if the government paid people to buy them too?!
  • Dukeisduke I don't like how they've changed their nameplates and font from the Star Trek-ish LEXUS, to L E X U S, kinda like VW's lettering on the back of the T A O S, or those stick-on letters you can buy at the parts store that people use to their own names on the back of their cars.
  • Dukeisduke So, the screen goes blank for two-tenths of a second, every once in a while - what could go wrong?