/PRNewswire/ -- If you got a rebate from holiday shopping this year, there's a good chance it came in the form of a rebate card. More and more retailers are switching from issuing rebate checks to providing rebates on prepaid cards that look like gift cards. But rebate cards come with fees and other restrictions that can diminish their value, according to Consumers Union, the nonprofit publisher of Consumer Reports.
"The switch to issuing rebates on plastic is saving retailers money but consumers stand to lose out to a host of fees that can eat into their rebate savings," said Michelle Jun, staff attorney with Consumers Union. "Consumers should be sure to read the fine print carefully when they get a rebate card to make sure they end up getting the full rebate they were promised."
Retailers issued $4.24 billion in rebates on rebate cards in 2008, according to Mercator, a market research consulting firm for the prepaid card industry. That represents a 53 percent jump from the previous year and industry analysts expect that trend to pick up in the coming years.
While rebate cards resemble gift cards, they aren't governed by state laws and a new federal law that limit fees and quick expiration dates on gift cards. The Credit CARD Act of 2009 prohibits gift cards from expiring before five years from the date of purchase or when money was last loaded onto the card. Gift card issuers are barred from charging fees for the first 12 months. These federal gift card protections will go into effect in August and stronger state protections will remain in effect.
Rebate cards come in two forms: "closed-loop" cards that can only be used by the retailer that issues it and "open-loop" cards issued by Visa, MasterCard, American Express or Discover. These "open-loop" cards can be used anywhere the card network is accepted. In most cases, the only way to redeem the funds on a rebate card is to buy something else. Rebate checks, on the other hand, can be deposited into a bank account.
To help consumers avoid problems with rebate cards, Consumers Union issued the following tips:
Watch out for rebate card fees: Like other prepaid cards, rebate cards can come loaded with fees, including fees for activating the card, checking balances, inactivity, going over the limit, or replacing a lost or stolen card. Be sure to read the fine print when you receive a rebate card to become familiar with the fees you might be charged so you can avoid them.
Keep an eye on rebate card expiration dates: Many consumers have a tendency to hang onto gift cards instead of spending them right away. That could be a big mistake with a rebate card since it might expire quickly. Some rebate cards expire in as little as three months. The best advice is to check the expiration date when you receive a rebate card and spend it before it expires or you accrue other fees.
Know your balance and avoid problems at the check-out: Rebate cards can sometimes be difficult to use if the funds on the card don't cover the full amount of the purchase. To avoid this problem, keep track of the balance on your card and ask the merchant to make a "split tender transaction" so you can use the rebate card and some other form of payment to cover the full amount. Unfortunately, not all cashiers know how to process these kinds of transactions, which can make redeeming your rebate card unnecessarily frustrating.
Be aware that your rights may be limited if your card is lost or stolen: When rebate cards are lost or stolen and used by others to make fraudulent transactions, consumers are not protected by the same regulatory and statutory safeguards that enable debit card users to recover their money. If a consumer contacts a card issuer about a lost or stolen debit card within two business days, the consumer's liability is limited to up to $50 (or up to $500 if the consumer reports the debit card lost or stolen after two business days). By contrast, rebate cards may only have voluntary protections that could be revised or rescinded at any time for any reason.
"It's time for the law to catch up with this latest form of plastic payment so consumers don't end up losing their rebate savings to hidden fees and short expiration dates," said Pamela Banks, policy counsel for Consumers Union. "The emergence of rebate cards is a perfect example of why we need a Consumer Financial Protection Agency (CFPA) so that government regulators can respond more quickly and effectively to problems created by new financial products."
Last October, the House passed financial reform legislation that includes the creation of the CFPA, which would be charged with making sure that financial products and services are more transparent, fair and understandable for consumers. The CFPA will have the power to write and enforce rules, to fill the gaps under specific existing consumer protection statutes, and also anticipate and prevent harm to consumers from new products and practices. The Senate is considering a similar proposal.
-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Follow us on Twitter: @GAFrontPage
Showing posts with label rebates. Show all posts
Showing posts with label rebates. Show all posts
Tuesday, January 12, 2010
Thursday, August 20, 2009
Cash for Clunkers Finishes, Dealer Stimulus Program Begins
/PRNewswire/ -- Cash for Clunkers is coming to an end. National Automobile Dealers Association officials asked the government to suspend the cash-for-clunkers program because a survey by the group found that the $3 billion fund has been exhausted, NADA Chairman John McEleney said.
While the Cash for Clunkers program is coming to an end manufacturers and dealers are concerned that their business will return to pre-clunker levels. To address this concern, some of the leading U.S. Automotive Retailers are participating in a privately funded stimulus program to help consumers who were left behind by the government's plan. Due to the restrictions of the government's program, over 90% of consumers were not eligible. As a result, some of the largest retailers in the country are promoting a new dealer funded stimulus program that gives consumers up to $4500 of additional trade-in value towards the purchase of a new or used vehicle. See Program details at www.AutoStimulusPlan.com. The new stimulus plan is more inclusive because all trade-ins older than 2007 are eligible regardless of their current MPG and consumers can purchase or lease any new or used vehicle with an improved fuel economy of 2MPG. This is a contrast to the government program which excluded trade-ins with more than 18MPG, used cars and short term leasing and some vehicles needed to get at least 4MPG improvement to qualify.
"The business that came from the Cash for Clunkers program started off very strong and it has since leveled off," said Vince Sheehy from Sheehy Automotive Group in Washington DC, Virginia, Maryland and Baltimore. "But we did not expect it to end so fast." While clunker business began to slow down, dealers participating in the New Stimulus Plan have seen their sales continue to rise because they are helping the larger group of consumers that were left behind by the government program. In fact, according to Brian Benstock, General Manager and Vice President at Paragon, has helped them rise from 17th in new vehicle sales to #4 in the nation. In addition, the used vehicle component of the new stimulus plan has helped them become the #1 certified pre-owned Honda and Acura dealer in the world this month. "This is our best used vehicle month ever," said Benstock.
Paragons results since the New Stimulus Plan took effect have led to a historic month:
-- They are on pace for 600 new vehicles to be sold and 300 used
vehicles. This represents a 100% increase in new car business and a
50% increase in pre-owned business.
-- 900 vehicle sales created estimated sales tax revenues of $2,000,000
for the month.
-- 900 unit sales created $24,000,000.00 in gross sales.
John Malishenko, Director of Operations for Germain Automotive, another participating dealer in the Stimulus Plan, is reporting that his dealership just had their second best three day weekend of the year. "We've seen a 40% increase in unit sales versus July and we are currently pacing $45,000,000 of sales for the month. While other dealer's business has been falling off we are picking up." The program has worked well because it has focused on the majority of the people that were not eligible for the government plan.
In the wake of the government's program dealers are running low on cash and their inventories are lopsided with most of the new vehicles that qualify selling out while they still have a surplus of other vehicles that don't qualify. "The new dealer stimulus plan will help us sell the cars that are left over and help us build up our used vehicle business," said Brian Benstock from Paragon Auto Group, one of the participating dealers in New York City.
Used vehicle inventories have shrunk because the clunkers have to be destroyed. "We have to buy more used cars at auctions for higher prices," said John Malishenko, Director of Operations for the Germain Automotive Group who owns dealerships in Ohio, Arizona, Florida and Arkansas. "I would prefer to give customers 20 percent more for their trade-in to earn their business rather than paying more to Manheim Auction. If I overpay under the new stimulus plan I still sold a car and I have a customer who will service with me over the long term."
The dealer-funded Auto Stimulus Plan includes used vehicles and allows dealers to resell the trade ins. "Letting consumers buy a used vehicle or lease a new vehicle makes it affordable for a lot of people who could not participate otherwise," said Scott Gruwell from Courtesy Auto Group in California and Arizona, one of GM's largest dealers and a participating dealer.
"We needed to do something to help out all the customers who were upset that they could not participate," said Rick Case, owner of Rick Case Automotive Group in Florida, Georgia and Ohio. "Consumers love it because the new stimulus saves them a lot of money on their purchase and reduces their gas and repair bills."
The Auto Stimulus Plan is a private sector program promoted by retailers to provide incentives to consumers that will help the economy and the environment at the same time. To qualify for an incentive a consumer must select a new or pre-owned vehicle with a 2MPG improvement over their current vehicle, which is the same requirement the government program has for SUV's, but it applies to all vehicles under the dealer's plan.
"The MPG requirements are lower because our primary goal is to help consumers that don't qualify for the government's program and to stimulate the economy through improved sales, jobs and spending," said Gruwell. "As a result, the environmental benefits may not be as big as the government program but it will help more customers get into more fuel efficient vehicles."
"If a consumer does not have a trade, they can benefit from the extraordinary manufacturer incentives that are out today," added Case. "In addition to the stimulus, our dealership is offering up to $4500 of savings to consumers."
Consumers can learn more about the program and begin connecting with participating retailers by visiting: www.AutoStimulusPlan.com.
The Auto Stimulus Plan gives consumers up to $4500 of additional trade-in value towards the purchase or lease of a new or used vehicle with improved fuel economy. The program has fewer rules, easier paperwork and no minimum MPG requirements for trade-ins.
Below is a summary of the program Requirements:
PROGRAM REQUIREMENTS
Current Vehicle Requirements
-- Vehicle must be older than 2007
-- Vehicle must be in working condition
-- Vehicle has been owned and registered for at least 6 months
-- No minimum MPG requirements
-- Vehicles that are not eligible are: salvaged vehicles and vehicles
with floor or frame damage
Replacement Vehicle Requirements
-- Replacement vehicle must have a minimum of 2MPG improvement
-- New and Used Vehicles Qualify
-- All makes and models
-- No minimum MPG requirements
-- No price restrictions
-- This plan is not valid in combination with the government's C.A.R.S.
program
The plan varies based on the year, make and model of the eligible vehicle. The plan may also vary in some states due to state laws that regulate automotive advertising and promotion. The Auto Stimulus Plan was planned to end when the government's program expired but they have extended it to November 1st. Visit www.AutoStimulusPlan.com for details.
The organization informs consumers that they should be patient if they cannot get through to the website, www.AutoStimulusPlan.com, on their first try. During the program's launch there was an overwhelming level of traffic resulting in periods of interruption. Consumers are advised to visit at a later time if the site is not functioning properly.
-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
While the Cash for Clunkers program is coming to an end manufacturers and dealers are concerned that their business will return to pre-clunker levels. To address this concern, some of the leading U.S. Automotive Retailers are participating in a privately funded stimulus program to help consumers who were left behind by the government's plan. Due to the restrictions of the government's program, over 90% of consumers were not eligible. As a result, some of the largest retailers in the country are promoting a new dealer funded stimulus program that gives consumers up to $4500 of additional trade-in value towards the purchase of a new or used vehicle. See Program details at www.AutoStimulusPlan.com. The new stimulus plan is more inclusive because all trade-ins older than 2007 are eligible regardless of their current MPG and consumers can purchase or lease any new or used vehicle with an improved fuel economy of 2MPG. This is a contrast to the government program which excluded trade-ins with more than 18MPG, used cars and short term leasing and some vehicles needed to get at least 4MPG improvement to qualify.
"The business that came from the Cash for Clunkers program started off very strong and it has since leveled off," said Vince Sheehy from Sheehy Automotive Group in Washington DC, Virginia, Maryland and Baltimore. "But we did not expect it to end so fast." While clunker business began to slow down, dealers participating in the New Stimulus Plan have seen their sales continue to rise because they are helping the larger group of consumers that were left behind by the government program. In fact, according to Brian Benstock, General Manager and Vice President at Paragon, has helped them rise from 17th in new vehicle sales to #4 in the nation. In addition, the used vehicle component of the new stimulus plan has helped them become the #1 certified pre-owned Honda and Acura dealer in the world this month. "This is our best used vehicle month ever," said Benstock.
Paragons results since the New Stimulus Plan took effect have led to a historic month:
-- They are on pace for 600 new vehicles to be sold and 300 used
vehicles. This represents a 100% increase in new car business and a
50% increase in pre-owned business.
-- 900 vehicle sales created estimated sales tax revenues of $2,000,000
for the month.
-- 900 unit sales created $24,000,000.00 in gross sales.
John Malishenko, Director of Operations for Germain Automotive, another participating dealer in the Stimulus Plan, is reporting that his dealership just had their second best three day weekend of the year. "We've seen a 40% increase in unit sales versus July and we are currently pacing $45,000,000 of sales for the month. While other dealer's business has been falling off we are picking up." The program has worked well because it has focused on the majority of the people that were not eligible for the government plan.
In the wake of the government's program dealers are running low on cash and their inventories are lopsided with most of the new vehicles that qualify selling out while they still have a surplus of other vehicles that don't qualify. "The new dealer stimulus plan will help us sell the cars that are left over and help us build up our used vehicle business," said Brian Benstock from Paragon Auto Group, one of the participating dealers in New York City.
Used vehicle inventories have shrunk because the clunkers have to be destroyed. "We have to buy more used cars at auctions for higher prices," said John Malishenko, Director of Operations for the Germain Automotive Group who owns dealerships in Ohio, Arizona, Florida and Arkansas. "I would prefer to give customers 20 percent more for their trade-in to earn their business rather than paying more to Manheim Auction. If I overpay under the new stimulus plan I still sold a car and I have a customer who will service with me over the long term."
The dealer-funded Auto Stimulus Plan includes used vehicles and allows dealers to resell the trade ins. "Letting consumers buy a used vehicle or lease a new vehicle makes it affordable for a lot of people who could not participate otherwise," said Scott Gruwell from Courtesy Auto Group in California and Arizona, one of GM's largest dealers and a participating dealer.
"We needed to do something to help out all the customers who were upset that they could not participate," said Rick Case, owner of Rick Case Automotive Group in Florida, Georgia and Ohio. "Consumers love it because the new stimulus saves them a lot of money on their purchase and reduces their gas and repair bills."
The Auto Stimulus Plan is a private sector program promoted by retailers to provide incentives to consumers that will help the economy and the environment at the same time. To qualify for an incentive a consumer must select a new or pre-owned vehicle with a 2MPG improvement over their current vehicle, which is the same requirement the government program has for SUV's, but it applies to all vehicles under the dealer's plan.
"The MPG requirements are lower because our primary goal is to help consumers that don't qualify for the government's program and to stimulate the economy through improved sales, jobs and spending," said Gruwell. "As a result, the environmental benefits may not be as big as the government program but it will help more customers get into more fuel efficient vehicles."
"If a consumer does not have a trade, they can benefit from the extraordinary manufacturer incentives that are out today," added Case. "In addition to the stimulus, our dealership is offering up to $4500 of savings to consumers."
Consumers can learn more about the program and begin connecting with participating retailers by visiting: www.AutoStimulusPlan.com.
The Auto Stimulus Plan gives consumers up to $4500 of additional trade-in value towards the purchase or lease of a new or used vehicle with improved fuel economy. The program has fewer rules, easier paperwork and no minimum MPG requirements for trade-ins.
Below is a summary of the program Requirements:
PROGRAM REQUIREMENTS
Current Vehicle Requirements
-- Vehicle must be older than 2007
-- Vehicle must be in working condition
-- Vehicle has been owned and registered for at least 6 months
-- No minimum MPG requirements
-- Vehicles that are not eligible are: salvaged vehicles and vehicles
with floor or frame damage
Replacement Vehicle Requirements
-- Replacement vehicle must have a minimum of 2MPG improvement
-- New and Used Vehicles Qualify
-- All makes and models
-- No minimum MPG requirements
-- No price restrictions
-- This plan is not valid in combination with the government's C.A.R.S.
program
The plan varies based on the year, make and model of the eligible vehicle. The plan may also vary in some states due to state laws that regulate automotive advertising and promotion. The Auto Stimulus Plan was planned to end when the government's program expired but they have extended it to November 1st. Visit www.AutoStimulusPlan.com for details.
The organization informs consumers that they should be patient if they cannot get through to the website, www.AutoStimulusPlan.com, on their first try. During the program's launch there was an overwhelming level of traffic resulting in periods of interruption. Consumers are advised to visit at a later time if the site is not functioning properly.
-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
Subscribe to:
Posts (Atom)
