Photo: GM
Still struggling to get back the glory it lost during financial turmoil of the beginning of the decade, American company GM seems to be at a loss when it comes to the new car modelsl strategy for the future. But the General still has ways to draw customers to its lots.
On Monday, GM announced a major upgrade to its warranty policies, with a new optional bumper-to-bumper limited warranty that was introduced as the industry’s first “true, extended” such feature.
As of this week, buyers of Chevrolet and GMC branded cars can opt to be offered a five years or 60,000 miles warranty, while Buick and Cadillac customers can benefit from a six years or 70,000 miles warranty.
Those figures are way up from the standard three years or 36,000 miles for Chevy and GMC and four years or 50,000 miles for Buick and Cadillac cars.
The decision made by GM to offer the extended warranty comes following analysis by IHS Markit which revealed that people who buy cars instead of leasing them have a tendency of keeping the vehicles around for over six years.
“This true extended warranty can keep the average customers covered for most if not all of the time they own their vehicle,” said in a statement Ken Mac, GM executive in charge with the Protection department at GM.
The new extended warranty comes with additional perks for the owners. According to GM, any warranty service is done without the need to file a claim form and with no deductible, and is accepted without question at partner dealers across the U.S.
Furthermore, the warranty is in force no matter who owns the vehicle, meaning a current owner could sell the car and the warranty will not be affected, possibly leading to an increase in the sale price.
GM did not say how much the extended warranty costs, but did mention that it will be “included in the overall price of the vehicle and can, therefore, be folded into the loan or lease at the customer's request.”
As of this week, buyers of Chevrolet and GMC branded cars can opt to be offered a five years or 60,000 miles warranty, while Buick and Cadillac customers can benefit from a six years or 70,000 miles warranty.
Those figures are way up from the standard three years or 36,000 miles for Chevy and GMC and four years or 50,000 miles for Buick and Cadillac cars.
The decision made by GM to offer the extended warranty comes following analysis by IHS Markit which revealed that people who buy cars instead of leasing them have a tendency of keeping the vehicles around for over six years.
“This true extended warranty can keep the average customers covered for most if not all of the time they own their vehicle,” said in a statement Ken Mac, GM executive in charge with the Protection department at GM.
The new extended warranty comes with additional perks for the owners. According to GM, any warranty service is done without the need to file a claim form and with no deductible, and is accepted without question at partner dealers across the U.S.
Furthermore, the warranty is in force no matter who owns the vehicle, meaning a current owner could sell the car and the warranty will not be affected, possibly leading to an increase in the sale price.
GM did not say how much the extended warranty costs, but did mention that it will be “included in the overall price of the vehicle and can, therefore, be folded into the loan or lease at the customer's request.”
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