In the past, the factory warranty that was offered on a vehicle gave you the peace of mind you wanted, but only for a short period of time.
Because vehicles are more reliable than they’ve been in the past, many automakers have added more time and miles to some of their warranties, and GM is joining that group. It’s time for the basic three-year/36,000 mile warranty to no longer be offered and something that’s more in line with the miles and time a vehicle will be owned to be offered on some of the GM products.
What are the New Warranties?
Currently, the Chevrolet and GMC products on the market are offered with the three-year/36,000 mile warranty that’s been offered for many years. Step up to a Buick or Cadillac model and you’ve got four-years/50,000 miles of coverage from the warranty. The new program will offer an extended amount of time for all factory warranties in order to make it much easier for you to have the peace of mind you want when you choose one of these four brand names as the one you want to drive and enjoy every day.
The new warranty terms will make it possible for you to have a Chevrolet or GMC product and know you’re covered for five-years/60,000 miles while the Buick and Cadillac brands will be covered under the factory warranty for six-years/70,000 miles. The average ownership time for a vehicle is about 6.8 years which means that GM is now offering factory, bumper-to-bumper warranties, for most of the time that you would own the vehicle you drive that wears one of these four names on it. This new warranty program makes sense for us as customers without going overboard for the warranty time period.
How Will This Affect Costs and Dealers?
These new warranties will cause an increase in the cost of the vehicles, which adds between $1,000 and $2,000 to the price of a vehicle. Unlike most extended warranty programs, you won’t have to pay a deductible or file a claim to have a warranty repair done under this new program. This program is also optional and dealers can still offer their own extended warranty programs on top of this factory model. The price of the extended warranty will be rolled into the price of the vehicle and reflected as part of your monthly payment, which makes perfect sense.
Can Others Benefit from These Warranties?
Many times, an extended warranty program is not transferable to a new owner of the vehicle. These new warranties offered by GM will be transferable and allow the vehicle to be covered regardless of who the current owner happens to be. This will certainly help to increase the resale value of the vehicle when it’s sold within the covered timeframe. Overall, the new extended warranty programs offered are a huge win for everyone involved and will help to bring GM models in line with some of the other models on the market with the right warranty length.