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.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid