General Motors on Monday said that it will now offer extended, full-coverage warranties for its Chevrolet, Buick, GMC, and Cadillac brands. Unlike other extended warranties, the new GM plans are a true extension of the factory warranty with no deductibles or limited coverage.
For Chevrolet and GMC vehicles, the coverage rises from 3 years or 36,000 miles to 5 years or60,000 miles, whichever comes first. For Buick and Cadillac vehicles, the coverage moves from 4 years or 50,000 miles to 6 years or 70,000 miles—again, whichever comes first. Unlike other extended warranties, the optional add-on warranty comes directly from GM and is accepted at any GM franchised dealership.
Additionally, the optional warranty coverage follows the vehicle, not the owner, which may help a car's residual value. The move is good news for luxury vehicle owners, specifically Cadillac, Buick, and GMC Denali customers. For those buying into Chevrolet performance cars such as the Camaro or Corvette, the bumper-to-bumper extended warranty may also offer greater peace of mind. Chevrolet famously said it will still honor the factory warranty even if a Camaro owner takes his or her car to the race track. Of course, modifications void all warranty coverage, as usual.
As for pricing, Automotive News (subscription required) reported the automaker has not installed a set price for the optional add-on warranty. Instead, GM suggested dealers charge $1,000 or $2,000 extra depending on the vehicle itself. The new offering is also meant to keep GM customers loyal and retain operational work inside GM dealers, not independent shops. Dealers can also sell the extended warranty alongside dealer service contracts, or choose one or the other.
Those who do take advantage of the extended warranty will see the extra price rolled into the cost of a new vehicle. Thus, shoppers can also add the extra protection to financing as part of a monthly payment. The optional warranty is available for all new GM vehicles immediately.