'ZDNET Recommends': What exactly does it mean?
ZDNET's recommendations are based on many hours of testing, research, and comparison shopping. We gather data from the best available sources, including vendor and retailer listings as well as other relevant and independent reviews sites. And we pore over customer reviews to find out what matters to real people who already own and use the products and services we’re assessing.
When you click through from our site to a retailer and buy a product or service, we may earn affiliate commissions. This helps support our work, but does not affect what we cover or how, and it does not affect the price you pay. Neither ZDNET nor the author are compensated for these independent reviews. Indeed, we follow strict guidelines that ensure our editorial content is never influenced by advertisers.
ZDNET's editorial team writes on behalf of you, our reader. Our goal is to deliver the most accurate information and the most knowledgeable advice possible in order to help you make smarter buying decisions on tech gear and a wide array of products and services. Our editors thoroughly review and fact-check every article to ensure that our content meets the highest standards. If we have made an error or published misleading information, we will correct or clarify the article. If you see inaccuracies in our content, please report the mistake via this form.
Can the My GM Rewards Card help you save on a new car?
We've all heard of earning cashback, airfare, and hotel stays with credit card rewards, but what about a new car? The My GM Rewards Card won't let you earn a new car, but it does let you save up rewards to make a hefty down payment. How? By rewarding you for every dollar you spend.
If you're a GM enthusiast who is always trading up, this card probably sounds like a good deal. Like anything else, however, the devil may be in the details. Keep reading to learn how the My GM Rewards Card works -- and why a different rewards card might work better.
My GM Rewards Card
The My GM Rewards Card works similarly to other rewards credit cards in that it doles out points based on how much you spend. With this card, you'll earn 7x points per dollar for GM Certified Service, GM Genuine Parts and ACDelco parts, eligible accessories, and most OnStar and Connected Services plans.
Cardholders will earn 4x points per dollar for all other purchases. Points are worth 1 cent, and there's no limit to the number cardholders can earn.
So, if you managed to spend $10,000 on your card the first year, you would rack up $400 total -- for general purchases. If you spent $10,000 on GM Certified Service or other qualifying purchases, you'd earn $700.
Beyond its lucrative earning structure, another great part about the card is that it doesn't charge an annual fee. If you were to use it for regular purchases and pay it off every month, the rewards you earn would be truly "free."
However, the kicker is that your rewards won't really benefit you at all unless you're planning on buying a new or used Chevrolet, Buick, GMC, or Cadillac vehicle.
Unlike other reward cards, the My GM Rewards Card doesn't let you redeem points for cashback or gift cards. You can only redeem your points for a discount on a new or used car through a licensed GM dealer, or for GM parts and services. Plus, you can't stack My GM Rewards Card earnings with fleet vehicle incentive programs or the GM employee discount.
There are three membership tiers cardholders are able to progress through, depending on how much they spend. The three tiers are Silver, Gold and Platinum. Cardholders can progress to Platinum by spending $110,000 or more in three years on an eligible GM vehicle, or by spending $2,500 in a year on GM Certified Service, accessories, parts, and the other 7x points qualifying card purchases.
Gold status comes with a $100 statement credit for every $1,500 cardholders spend on gas with their card in a calendar year. Electric car owners can get a $100 statement credit when they pay for six electric bills with the card between January and December 2022.
Where the My GM Rewards card shines
If you're especially loyal to Chevrolet, Buick, GMC, or Cadillac vehicles and expect to buy a new or used one in a few years, the My GM Rewards Card could be an amazing addition to your wallet. In terms of points, there are very few (if any) cards that offer such high rewards for no annual fee. Unfortunately, it doesn't offer much versatility at all when it comes time to redeem.
Better yet, this card offers 0% APR on purchases for your first 12 months (then 19.49% to 29.49% Variable). So, if you need to make a large purchase and pay it off over several months, this card could help.
Where the My GM Rewards card breaks down
While the My GM Rewards Card makes sense for someone who's in the market for a new GM vehicle, it makes almost no sense for anyone else. If you need a new car but aren't decided on an exact make and model, for example, being tied down to a GM model, could leave you with limited options.
And really, that's the biggest drawback of this card; it lacks flexibility. With most traditional reward cards, you can redeem your points for money in your bank account, a check in the mail, gift cards, or even merchandise. With the My GM Rewards Card, you're stuck with a discount on a car or service -- and that's basically it.
Who should get the My GM Rewards card?
Someone who definitely wants to purchase a new Chevrolet, Buick, GMC, or Cadillac vehicle in the future.
Who should pass on the My GM Rewards card?
Someone who wants flexibility in how they spend their credit card rewards, and especially a person who's interested in different car models and brands.
[This article was first published on The Simple Dollar in 2020. It was updated in March 2022.]