GM and Capital One Join Forces with New Rewards Card

General Motors, Capital One Financial Corporation and MasterCard have just introduced a new offering in the automotive rewards card sector, aptly named the GM Card from Capital One. Cardholders will earn 5 percent on the first $5,000 spent on the card each year, and an additional, uncapped 2 percent on all purchases beyond that. With no yearly fee, and no limit on the amount of awards that can be earned toward a lease or purchase of a General Motors vehicle, this card promises to be quite popular.

Basically, the new card signals a change for auto credit cards.

Prior incarnations of the GM Card have produced rewards points used in the lease or purchase of roughly 7 million General Motors vehicles. Now that the automaker will be unveiling 27 new or rejuvenated models through 2014, cardholders will be able to take full advantage of the lineup with this beefed up rewards program.

Among the most attractive features of the GM Card from Capital One are the fact that no limits are imposed on the earnings amounts cardholders can acquire. The earnings points never expire, and there is no restriction on how much of a cardholder’s earnings can be put toward a single GM vehicle lease or purchase transaction. Further, the card provides World Elite MasterCard program perks that include travel services, emergency replacement of lost cards, trip insurance, hotel upgrades and complimentary travel advisors.

The design of this offering features a vertical orientation, and cardholders can choose from a standard look or one of four options that each spotlights a particular General Motors division. This is intended to provide added appeal to those who have a particularly strong loyalty to an individual brand. No matter which card style is chosen, the rewards earned can be used towards the lease or purchase of any GMC, Chevrolet, Buick or Cadillac.

Officials at both Capital One and General Motors noted that the card’s development was in direct response to consumer feedback indicating a desire for an uncomplicated, yet substantial way to leverage their everyday purchases to make acquiring an automobile easier. The GM Card from Capital One aims to offer the sort of straightforward savings tool that sophisticated users of credit cards continue to seek. For General Motors, the card represents an opportunity to build on a solid track record of success with its automotive rewards card programs. For Capital One, the initiative is indicative of its ongoing interest in expanding corporate involvement in card partnerships of this type.