• Extends Chevrolet and GMC terms to 5 years/60,000 miles
  • Cadillac and Buick bumped out to 6 years/70,000 miles
  • Fully transferrable
  • Extra cost of $1,000-$2,000 included in vehicle price


General Motors has launched an extra cost extended bumper-to-bumper warranty which buyers can opt into when buying their new cars. Effective immediately, Chevrolet and GMC warranties can be extended from 3 years/36,000 miles to 5 years/60,000 miles, while Cadillac and Buick, which offer standard 4- year/50,000-mile coverage, can be extended to 6 years and 70,000 miles. If a buyer takes the extended coverage, it stays with the car until the end of the warranty period, giving it an additional edge in the resale market.

While GM says it’s the first true extended warranty offered by a manufacturer, other makes, like Hyundai and Kia have similar 5-year/60,000-mile bumper-to-bumper warranty coverage at no extra cost. And Volkswagen recently extended its basic warranty to 6 years and 72,000 miles.

“One of the best things about buying a new vehicle is the peace of mind that comes with the warranty,” said Ken Mac, director of Chevrolet, Buick, GMC, Cadillac Protection. “If you drive a Chevrolet, you know that any GM-brand dealer will take care of warranty repairs without paperwork, deductibles or exclusions. The same goes for Cadillac, GMC and Buick owners. Now, we’re offering people the opportunity to increase their bumper-to-bumper warranty duration far out into the future.”

Not a service contract

GM stresses that it isn’t a service contract, but rather an extension of the car’s factory warranty and will be valid at all Chevrolet, Buick GMC and Cadillac dealerships. The company also said the warranty remains in force no matter who owns the vehicle, so there’s no need to transfer coverage and that the cost of the extension can be folded into the purchase price or lease of a new vehicle.

“People who lease, typically keep the vehicle for 24-36 months, so most of them are always covered by the base bumper-to-bumper limited warranty,” Mac said.  “But if you buy, analysts say you’ll likely keep your new vehicle 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.”  According IHS Markit, average new car buyers keep vehicles for just over 6.8 years.

While the program may affect some sales of aftermarket service contracts by GM dealers, some industry analysts believe the additional cost, which GM said will be between $1,000 and $2,000 depending on the make and vehicle, might be waived or used as an incentive to help close a deal without further discounting the sale.

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