GM Offers First True Extended Bumper-to-Bumper Warranty

Autosphere » Dealerships » GM Offers First True Extended Bumper-to-Bumper Warranty

In the U.S., General Motors has launched a true, extended bumper-to-bumper limited warranty.

The program, which is applicable to new GM vehicles sold in the U.S., will offer five years or 60,000 miles (96,500 km) of coverage (whichever comes first) for Chevrolet and GMC customers, and six years or 70,000 miles (113,000 km) for Buick and Cadillac customers.

At present, GM says that no other automotive brands offer a true extended warranty through their retail networks.

“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.”

GM’s standard factory bumper-to-bumper limited warranty on Chevrolet and GMC products is currently three years or 36,000 miles (58,000 km), whichever comes first. On Buicks and Cadillacs, it is four years or 50,000 miles (80,000 km), whichever comes first.

GM says its new warranty program differs in several important ways from service contracts, which are a popular way to protect against unexpected repairs.

These 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 coverage does not need to be transferred.
  • The option is included in the overall price of the vehicle and can be integrated 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 average customers covered for most if not all of the time they own their vehicle.”

According to data from IHS Market, new car buyers in the U.S. keep vehicles for about 6.8 years on average, making the new extended warranty a strategy sales incentive. It will be interesting to see whether GM implements a similar program in Canada.

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