What You Need to Know About the New GM Extended Warranty
With the release of the new GM extended warranty, you may wonder what’s included. Our guide takes a look at the plans and other extended warranty options.
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Thinking about buying a new GM vehicle in the near future? Updated extended protection from GM may give you the option to lengthen your standard warranty.
We dug into the details to explore what was different about this new GM extended warranty. We’ll break down what is offered for each GM brand. You’ll also learn what limits and exclusions apply to the new warranty.
Since GM’s new extended warranty isn’t the only option for protecting your vehicle, we’ll also show you other options you should consider, such as service contracts from third-party provider CARCHEX. Read on to learn everything you need to know about the new GM extended warranty and how you can protect your Chevy, GMC, Buick, or Cadillac through a third-party provider like CARCHEX.
For a free quote from a CARCHEX representative, call (877) 225-7247 or fill out the online form.
The New GM Extended Warranty
In October 2018, General Motors released their plans to offer a new extended warranty program. Unlike traditional extended warranties, GM’s new warranty would simply allow buyers to tack on additional years and mileage to their factory warranty. Essentially, you can choose to buy a longer factory warranty.
A part of the reason for the new program is to give a warranty option for the average car owner. Most of us buy a new car and own it for just under seven years. The new GM extended warranty gives you the option to have your new car under warranty for the majority of the time you own it.
After its release in October, GM reported a one percent increase in sales in November. Obviously, it’s unlikely this increase was caused solely by the new warranty option; however, this new warranty could encourage buyers to choose GM vehicles over other brands.
What Is an Extended Warranty?
A traditional extended warranty is actually a service contract. Service contracts are often called extended warranties, even though they aren’t warranties at all. Sometimes also known as vehicle protection plans, auto service contracts offer coverage for certain repairs to your vehicle.
Service contracts can be added later after you purchase a car. Some key differences between a factory warranty and vehicle protection plan include:
- Factory warranties are included in the price of your vehicle. They are usually offered only on new vehicles, though some used vehicles, such as certified pre-owned vehicles, may also have them.
- A protection plan or traditional extended warranty is an additional service you can purchase to protect your vehicle after the factory warranty expires. They can also be used to add protection not offered by the manufacturer warranty. You can get a protection plan almost anytime you want.
- Factory warranties usually begin when the car is driven. For example, a car meant for test drives, although still new, may have already started losing mileage on its warranty. Service contracts begin when the contract is put in place, even if the car is used.
How Is GM’s Extended Warranty Different Than Other Extended Warranties?
The new GM extended warranty is different than traditional extended warranty programs. Unlike service contracts, GM’s new extended warranty is a true extension of the factory bumper-to-bumper warranty. There are no added perks that come with the extension other than the length or mileage restrictions of the warranty.
Being a literal extension of the factory warranty, the new GM extended warranty doesn’t require claims, forms, or deductibles. All GM dealers are supposed to perform warranty-covered repairs with no questions asked.
Details of the New GM Extended Warranty
Below we’ve broken down what the standard warranties are for each of GM’s brands. We’ve also included what each extended warranty offers.
Standard Bumper-to-Bumper Limited Warranty
Extended Bumper-to- Bumper Limited Warranty
Six years/60,000 miles
Six years/70,000 miles
Six years/60,000 miles
Six years/70,000 miles
This new extended warranty option is available for new vehicles. According to Chevrolet (and identical across Buick, GMC, and Cadillac), both the regular limited warranty and extended warranty include:
“The entire vehicle is warranted for repairs, including parts and labor, to correct defects in materials or workmanship, excluding routine maintenance. Needed repairs will be performed using new, remanufactured, or refurbished parts.”
Exclusions in the New GM Extended Warranty
Being an addition to the factory limited warranty, the GM extended warranty has the same exclusions. In addition to the routine maintenance mentioned above, GM warranties for Chevy, Buick, GMC, and Cadillac do not cover any improper or irregular use of the vehicles. Below are some of the warranty exclusions for each brand listed on their websites:
- Tire and wheel damage, including normal wear and tear or damage caused by potholes, nails, or debris.
- Damage due to bed liners that have rubbed the finish off of the bed or spray-in bed liners that are fading.
- Damages caused by an accident, misuse (such as racing), or alterations to the vehicle.
- Improper or low-quality fuel that causes damage to the vehicle.
- Damages due to accidents or misuse of the vehicle.
- Damage caused by improper or insufficient maintenance.
- Aftermarket products that cause damage to the vehicle or its systems.
- Road debris, potholes, nails, or other factors that cause tire or wheel damage or wear.
- Damages due to bed liners scratching a bed’s finish.
- Damage due to misuses such as racing, driving over curbs, or overloading the vehicle.
- Damages due to improper use or maintenance.
- Damage caused by alterations or installation of products not approved by General Motors.
Why It Makes Sense to Get a Vehicle Protection Plan
While the GM extended warranty is a great deal for many drivers, it still might be a good idea to get an additional protection plan. If you plan to keep your vehicle past the extended warranty’s expiration, a service contract can continue similar coverage.
You might also want to pair a GM extended warranty with a service contract for your new vehicle if you plan to keep it for a long time. The cost of a protection plan is least expensive when the car is new. By buying a service contract now, you can save money on the cost of your service contract.
In addition, many service contracts offer added perks not found in factory warranties. It’s common for protection plans to offer benefits like roadside assistance, rental car reimbursement, and even gas delivery.
GM vs. Third-Party Warranty Company
You’ve decided a service contract warranty is a good idea for your GM vehicle. Now, do you have to buy it directly from GM? The answer is no. Some of the benefits of a third-party warranty company service contract include:
- Repair flexibility: Most dealers require that you have your vehicle repaired in their shop. Third-party companies almost always allow you to choose your own repair shop.
- Cost: It’s not uncommon for third-party warranty companies to offer a lower cost for service contracts. You can also usually customize your protection plan with a third-party company. This allows you to set a price and choose protections that are within this price range.
- Added benefits: Most third-party companies include a range of additional perks with your service contract. Roadside assistance, gas delivery, and towing services are often included with a service contract.
Why You Should Consider a CARCHEX Protection Plan
Choosing a CARCHEX Extended Vehicle Protection Plan for your shiny new GM vehicle can be a great choice for additional peace of mind. CARCHEX is dedicated to providing the ultimate customer service. With multiple protection plan options, you can customize your coverage to meet your needs.
One of the best parts of CARCHEX service contracts is the price. Dealership salespeople often make you purchase a protection plan when purchasing a car and then roll it into the price. This means you’ll be haggling for the price of your car and your new service contract.
On the other hand, other third-party warranty companies may not advertise the lowest price. You’ll be stuck on the phone with a customer service representative while trying to figure out the actual price of the contract. With CARCHEX, you get the No-Haggle, Low Price, Everyday Guarantee™.
CARCHEX GM Coverage Options
CARCHEX offers different protection plans to meet your needs, with up to 10 years of coverage. Coverage isn’t limited to when you first buy the vehicle, either. You’ll be able to renew your service contract or choose a new one almost any time you like.
As your car ages, you might even consider starting a new protection plan with different coverage for your new needs. Check out our overview of CARCHEX’s coverage levels, with several plans underneath each one:
- Titanium Coverage: The peak of protection, this level of coverage is comprehensive and gives you options for up to 10 years of coverage.
- Platinum Coverage: This package provides the highest level of stated component coverage. You can choose a Platinum plan for up to 10 years.
- Gold Coverage: Often a great fit for aging vehicles with over 60,000 miles, the Gold package offers flexible terms for up to 10 years.
- Silver Coverage: If you have a higher mileage GM vehicle, this plan covers most of a vehicle’s major systems and components for up to seven years.
- Bronze Coverage: This level is perfect for a reliable GM vehicle with little to no repair needs. This plan was designed to cover the most expensive repairs and is offered up to six years.
FAQ: GM’s New Extended Warranty Option
You’re probably wondering about the GM extended warranty’s flexibility and cost. Below, we’ve put together the answers to some of the most frequently asked questions about this new GM warranty program.
Is it transferable?
Yes, the GM extended warranty is transferable, even when sold. GM considers this a possible selling point for future resale of your extended warranty vehicle if you choose to sell it before the warranty expires.
How much does it cost?
Dealers are allowed to choose pricing for the extended warranty. It should fall somewhere in the $1,000-$2,000 range.
Where can I buy a GM extended warranty?
The GM extended warranty is offered by GM brand dealerships. Each dealership can choose whether or not it will sell the extended warranty.
Are there limits to the extended warranty?
Yes, the GM extended warranty can only be purchased at the sale of a new GM vehicle. If a dealer does not choose to offer the extended warranty, you may be given other protection plan options.
Does GM offer a lifetime comprehensive warranty?
The addition of the extended warranty is the longest available comprehensive warranty for GM-brand vehicles. GM does not offer a lifetime bumper-to-bumper warranty.
Can I cancel my GM extended warranty?
No, you may not cancel your new GM extended warranty. However, if you have the previous extended warranty model, now known as GM’s protection plans, you can cancel that service.
Are there other extended warranty options available for GM vehicles?
Yes, in addition to the new extended warranty program, GM offers a range of protection plan service contracts. You can also get a service contract through a third-party warranty company.
Should I consider purchasing one?
GM’s new extended warranty program offers a unique opportunity to new car buyers. If your GM dealer offers the new warranty, it could extend the length of your factory warranty by two years. This is a great way to receive continued manufacturer protection if you plan to keep your vehicle long-term.
Additionally, if you choose to sell your vehicle before the warranty is up, the extended warranty may increase resale value. Used car buyers want to know that their new-to-them vehicle is going to keep running. The extended warranty protects the vehicle and shows that you, the first owner, took proper care of it.
Protecting Your GM Vehicle with CARCHEX
The new GM extended warranty provides a great start to protecting your new Chevy, Buick, GMC, or Cadillac. Pair the GM warranty with a protection plan from CARCHEX, and you’ve got a well-rounded protection program. You’ll get the peace of mind from the GM extended warranty and the added perks of the CARCHEX warranty.
Get started today with a free quote from CARCHEX, fully customized to your vehicle’s model and age, as well as your driving habits. Simply call CARCHEX at (877) 225-7247 or visit the website for a free quote.
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