It's an extension of the factory-backed bumper-to-bumper coverage, but it's not free.
If you’re thinking about purchasing a new car from a brand under the General Motors umbrella, the automaker wants to sweeten the deal with a new extended warranty. Doesn’t GM already offer extended warranties on vehicles you may ask? Yes, but this one is different. According to a press release from GM, the new warranty is a “true, extended bumper-to-bumper limited warranty” that will add factory-supported coverage for all brands. In short, instead of setting up extended coverage as a separate contract after the standard new-vehicle warranty expires, GM promotes the revamped plan as a no-fuss-no-muss extension of the original coverage.
“One of the best things about buying a new vehicle is the peace of mind that comes with the warranty,” said Ken Mac, director of Chevrolet, Buick, GMC, Cadillac Protection. “If you drive a Chevrolet, you know that any GM-brand dealer will take care of warranty repairs without paperwork, deductibles or exclusions. The same goes for Cadillac, GMC, and Buick owners. Now, we’re offering people the opportunity to increase the duration of their bumper-to-bumper warranty far out into the future.”
To be more specific, buyers of new Chevrolet and GMC vehicles can bump the standard 3-year/36,000-mile warranty to 5 years or 60,000 miles. Buick and Cadillac vehicles already come with 4 years or 50,000 miles of coverage, so buyers for those models can bump coverage to 6 years or 70,000 miles. Additionally, the warranty isn’t person-specific, meaning that it stays with the car no matter who the owner is, without any need to transfer coverage.
The extra coverage isn’t free, however. GM doesn’t mention specific pricing in its announcement, but in an email to Motor1.com, a GM representative confirmed final pricing would be left up to dealers and should fall in the $1,000 to $2,000 range. Additionally, the coverage is only available on brand-new vehicles at the time of purchase.
Source: General Motors
GM BREAKS NEW GROUND WITH THE INDUSTRY’S FIRST TRUE, OPTIONAL EXTENDED BUMPER-TO-BUMPER LIMITED WARRANTY
GRAND BLANC, MICH. — Effective immediately, people buying new General Motors vehicles will have the opportunity to purchase a true, extended bumper-to-bumper limited warranty resulting in five years or 60,000 miles of coverage (whichever comes first) for Chevrolet and GMC customers, and six years or 70,000 miles for Buick and Cadillac customers. No other brand offers customers a true extended warranty.
“One of the best things about buying a new vehicle is the peace of mind that comes with the warranty,” said Ken Mac, director of Chevrolet, Buick, GMC, Cadillac Protection. “If you drive a Chevrolet, you know that any GM-brand dealer will take care of warranty repairs without paperwork, deductibles or exclusions. The same goes for Cadillac, GMC and Buick owners. Now, we’re offering people the opportunity to increase the duration of their bumper-to-bumper warranty far out into the future.”
The standard factory bumper-to-bumper limited warranty on Chevrolet and GMC products is three years or 36,000 miles, whichever comes first. On Buicks and Cadillacs, it is four years or 50,000 miles, whichever comes first.
GM’s new warranty program differs in several important ways from service contracts, which are a popular way to protect against unexpected repairs.
The most important differences include:
- The optional limited warranty is accepted without question by all Chevrolet, Buick, GMC and Cadillac dealers nationwide.
- Any warranty service is completed without need to file a claim form and with no deductible.
- The warranty is in force no matter who owns the vehicle, so there’s no need to transfer coverage. This may enhance the resale value of the vehicle.
- The option is included in the overall price of the vehicle and can therefore be folded into the loan or lease at the customer's request.
“People who lease typically keep the vehicle for 24-36 months, so most of them are always covered by the base bumper-to-bumper limited warranty,” Mac said. “But if you buy, analysts say you’ll likely keep your new vehicle for over six years. This true extended warranty can keep the average customers covered for most if not all of the time they own their vehicle.”
On average, new car buyers keep vehicles for about 6.8 years, according IHS Markit.