GM dealers to offer factory-backed extended bumper-to-bumper warranties

October 15, 2018

General Motors dealers on Monday began offering extended full-coverage new-car warranties that the automaker said are the first of their kind.

Rather than extending coverage for certain components like other factory-backed warranties, GM's new, extra-cost warranty is a complete extension of the bumper-to-bumper coverage its cars include when they are new. The extended warranties stretch the 3-year, 36,000-mile coverage in Chevrolet and GMC models to five years or 60,000 miles, while the 4-year, 50,000-mile warranty included with Buick and Cadillac models can be extended to 6-year, 70,000-mile coverage.

MORE: Do you purchase an extended warranty when buying a car? Our poll results

Additionally, GM's new extended warranty has no deductible and vehicle owners won't need to file a claim for reimbursement or for coverage. Unlike aftermarket warranties sold by dealers, the GM warranties are accepted at any of the automaker's service departments across the U.S.

GM left pricing for the warranties to its dealers, however. The automaker told Automotive News a suggested retail price between $1,000 and $2,000 for the warranties, depending on the vehicle.The cost of the warranty can be rolled into the monthly payment for a financed vehicle, GM said in a statement.

As the profit margin on new vehicles has shrunk, warranties have become a major source of revenue for car dealers.

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