General Motors is now offering an extra two years on its factory warranty at a relatively modest upcharge.
GM’s extended warranty upgrades Chevrolet and GMC vehicles to five-year/60,000-mile coverage, up from the standard three-year/36,000-mile warranty. Cadillac and Buick buyers can boost their four-year/50,000-mile warranty to a six-year/70,000-mile plan. The approximate cost ranges between $1000 and $2000 depending on model. Like the original warranty, it's fully transferrable to subsequent owners, covers everything under the original warranty, and has no new exclusions. Powertrain, corrosion, emissions, battery, and other warranties considered separate from the bumper-to-bumper warranty are unaffected.
Current GM service contracts, whether written by third-party companies (such as dealerships) or the factory, reimburse payments an owner has already made and come with deductibles. Some are only valid at a single dealer. GM says it's not trying to dissuade dealers from offering these contracts, nor will it stop pushing current factory-backed extras such as the Cadillac Protection Plan.
"We're offering dealers and customers another choice. It's up to the dealers which product they choose to sell," spokeswoman Rita Kass-Shamoun told C/D.
But buyers need make the deal at purchase, or walk away without another chance. Unlike most factory extended warranties that allow owners to add the coverage at any time before the original warranty expires, the one and only time you can take GM's offer is at the point of sale. It's also only valid for new car buyers starting today. If you purchased a new Malibu last week, forget it. Certified pre-owned models that carry their own factory extended warranties are ineligible. Since the extended warranty carries all the same terms as the standard warranty, GM considers it a permanent replacement instead of an add-on. That means customers can't cancel and receive refunds before the extra coverage begins, a practice some other automakers follow.
Despite the restrictions, GM's extended warranty option is part of an industry trend in offering longer factory coverage and maintenance plans. In 2017, Volkswagen made a six-year/72,000-mile warranty standard on almost every new car. Jaguar upgraded customers to a five-year/60,000-mile warranty in 2015, which comes with all scheduled maintenance during that time. Deal or no deal?
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