General Motors Co., Capital One Financial Corp. and MasterCard on Wednesday announced a new GM Card from Capital One that gives consumers 5 percent earnings on their first $5,000 in purchases each year and an unlimited 2 percent return on all other purchases.
The new GM Card has no annual fee and has no limit on the rewards that card holders can use toward buying or leasing a new Chevrolet, Buick, GMC or Cadillac. The companies also said the rewards have no expiration date. Details are available at www.gmcard.com.
“Consumers told us they wanted a straightforward way to earn greater benefits than their current auto rewards card,” Bill Cilluffo, executive vice president of card partnerships at Capital One, said in a statement. “Together, in a partnership with General Motors, we have set a new standard in this category and are providing a better solution for consumers to plan for and save toward their next new Chevrolet, Buick, or Cadillac vehicle.”
The older GM Card offers 5 percent earnings a year, but redemption amounts are limited and vary by vehicle. Earnings also expire in seven years.
Cardholders with the older GM Card can keep their existing card or can call customer service to transfer to the new GM Card, the companies said.
About 3.9 million carry the GM Card and GM and Capital One expect to grow its numbers with its new offering which both say is more lucrative for consumers over other auto rewards credit cards. Most auto rewards cards only offer consumers 1 percent toward auto purchases, said Chuck Thomson, general manager of GM retail sales and marketing support.
Cilluffo said the card will be marketed in a significant campaign over the next six months.
Since 1992, GM Card holders have used their earnings toward buying nearly 7 million new GM vehicles.