GM says optional extended ‘bumper-to-bumper’ warranty ‘breaks new ground’

Photo: GM Corporate Newsroom.

Coming off a rough third quarter that saw an 11 percent sales drop, GM now seems to be betting that an option announced today to purchase a “no questions asked” limited warranty offering an extended period of “bumper-to-bumper” coverage will be enough to entice more consumers to buy a new Chevrolet, GMC, Buick, or Cadillac vehicle.

The automaker says that the new optional warranty will extend coverage to five years or 60,000 miles (whichever comes first) for Chevrolet and GMC vehicles, and six years or 70,000 miles for Buick and Cadillac.

In their press release, GM asserted that “No other brand offers customers a true extended warranty.

The new add-on warranty purchase option extends GM’s standard factory bumper-to-bumper limited warranty, which is three years or 36,000 miles (whichever comes first) on Chevrolet and GMC products or four years or 50,000 miles (whichever comes first) on Cadillacs and Buicks.

The appeal of long warranties has historically been a boon to helping import automakers like Hyundai and Kia strengthen their sales foothold in the United States. Kia, for example, currently offers a 60,000 mile limited basic warranty and a 10-year or 100,000 mile limited powertrain warranty.

Various flavors of extended warranty coverage from third party providers are also a popular add-on purchase option, widely available from car dealerships—and often pushed aggressively by auto sales personnel.

So what’s so different about GM’s new paid extended warranty option? According to the automaker, there are several differentiators:

• 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 and, according to the automaker, 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.

“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, in a press release.

“If you drive a Chevrolet, you know that any GM-brand dealer will take care of warranty repairs without paperwork, deductibles or exclusions,” Mac said.  “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.”