GM Offering Warranty Extensions
Starting this week, GM began offering a 2-year extension to their bumper-to-bumper warranty on all new vehicles. All Chevrolet and GMC vehicles currently come with 3 year / 36,000 miles warranties, which can now be extended to 5 year / 60,000 miles, while Buick and Cadillac can be bumped up from 4 year / 50,000 miles to 6 year / 70,000 miles.
GM is leaving the pricing up to dealers, but expect to pay between $1,000 and $2,000 for the extension, although there are rumors you may be able to get this added on for free or at a much bigger discount if you shop around.
Unlike other types of extended warranties, this one cannot be cancelled, but it will remain with the vehicle and can be passed to new owners (potentially increasing resale value). The extended warranty acts exactly like the bumper-to-bumper warranty, with no deductibles and no need to file claims when getting warranty work. You can only purchase this extension at point of sale.
My take on this is that it's worth paying between $500 and $1,000 if you intend to keep the vehicle for the entire bumper-to-bumper warranty. Like I mentioned, there are rumors that dealers may be able to throw this extension into the deal for free if it means getting a sale, so I would definitely try to have them do this - but keep in mind you will need to contact several dealers and have them compete for your business.
My Recommendation for Car ShoppersTrueCar and Edmunds are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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