General Motors has announced that they are giving new-vehicle buyers the option to add two years onto their factory warranty. The program is optional, and begins October 2018. The warranty lengthens the factory 3-year/36,000 mile limited warranty on Chevrolet and GMC vehicles. For Buick and Cadillac, the extension lengthens the warranty to 6 years/70,000 miles.
Pricing for the warranty will be left up to dealers. GM suggests that they charge $1000-$2000 based on the price and type of vehicle. The cost would be added to the vehicle price and rolled into their monthly payment.
“It keeps the GM customer experience pure, inside the GM system,” said Ken Mac, director of Chevrolet-Buick-GMC and Cadillac Protection. “We really believe the more pure you keep your GM experience, the better it is for you the consumer and the GM dealer.”
Several dealers reported having mixed feelings about the program. They say that there is a risk associated that would help the manufacturer more than the stores. However, some feel that the warranty is innovative and will help the dealer sell more cars as well as retain more service customers.