GM Rolls Out Optional Extended Warranty
The new extended ‘bumper-to-bumper’ warranty isn’t designed to act like a dealer-offered service contract. Repairs can be completed without filing a claim and there are no deductibles. The option also is included in a vehicle’s overall price.
DETROIT — General Motors rolled out an extended ‘bumper-to-bumper’ warranty designed to match the coverage term of its powertrain warranty. The new warranty is available on new vehicles purchased on or after Oct. 15 for the 2018 or 2019 model year, according to the company.
The upgraded warranty will cover Chevrolet and GMC vehicles for five years or 60,000 miles and Buick and Cadillac vehicles for six years or 70,000 miles. The standard bumper-to-bumper warranties offer three years or 36,000 miles for Chevrolet and GMC and four years or 50,000 miles for Buick and Cadillac.
Pricing would be set by the dealer, although GM has recommended a price range of between $1,000 and $2,000, depending on the model. The warranty also stays with the vehicle, even if there’s a change of ownership — which could increase its residual value, said Rita Kass-Shamoun, a GM spokesperson.
"We believe this could be a selling point from the original vehicle buyer to the second vehicle owner," said Kass-Shamoun. "We believe this will increase the residual value."
The new warranty isn’t like a dealer-offered service contract, as repairs are completed without the need for a claim to be filed. There also are no deductibles. The option also is included in the overall price of the vehicle and could be folded into a loan or lease.
"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," said Ken Mac, director of Chevrolet, Buick, GMC, Cadillac Protection. "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."
Originally posted on F&I and Showroom
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →