GM factory extended warranty?

beerme1 · #1 (**permalink**) 01-27-08, 07:51 PM

Is there a GM extended warranty available? If so anyone know how much?

MoFex · #2 (**permalink**) 01-27-08, 08:00 PM

Yes, there is. I was offered one when I was buying my CTS. I declined....do not remember the price...

calcustom · #3 (**permalink**) 01-27-08, 09:28 PM

Quote:

Originally Posted by beerme1

Is there a GM extended warranty available? If so anyone know how much?

General Motors Protection Plan (GMPP) cost varies based on length of extended warranty and miles selected, deductable amount chosen, type of coverage selected (Major Guard, Value Guard, Basic Guard). More info can be obtained at http://www.gmprotectionplan.com/index.html. Price can be negotiated with dealership. I have purchased several over the years from Ken Fitchner Chevrolet. Ken gave me the best price. There is also a link on this web site to a supporting vendor for GMPP http://www.cadillacextendedwarranty....FTgrOAodGinCOw

NOT ON MY WATCH · #4 (**permalink**) 01-27-08, 11:10 PM

I don't have the "book o' prices", but there are many extended warranty options available. The pricing will vary depending on these criteria: length of warranty in years, length of warranty in miles, and deductible ($0, $100, $200, etc.).

Crackerzot · #5 (**permalink**) 01-27-08, 11:12 PM

The GMPP warranty is outstanding. I've had one on my Corvette that has saved me numerous times and more than paid for itself. I'm generally not a fan of extended warranties (particularly aftermarket warranties which often aren't worth the paper they're printed on), but my personal experience with the GMPP has made me a fan. I'm probably going to get one for my CTS.

beerme1 · #6 (**permalink**) 01-28-08, 03:12 AM

Thanks guys. The reason I asked was actually due to an ad on this site for extended warranty.
I am not a buyer of extended warranties as a rule. However after my experience with my last car an 05 Mercury Mariner and what happened after the basic warranty expires that I was sol as I knew i would be compared to my wife who is still using an extended platinum warranty from some aftermarket company called Interstate, I realize the value of an extended warranty on a car.
She paid $1600 for hers back in 98 and it was an extension of 7 years after the 3/36 factory warranty. Sounds great right? Wrong. Even though she bought the highest level of protection they are miserable to deal with and they dont pay for things that are supposed to be covered by them. For example a window motor. Even though the covereage she bought says basically bumper to bumper, they will not pay for a lot of stuff.
Furthermore on after market warranty my brother in law bought an 04 GMC pickup and an extended warranty and got burned with useless paper because the company went out of business.
That taught us all a lesson in that we will buy extended warranties only from the factory. No third parties,

Thanks again guys. And in particular thanks to calcustom for the link.

malcolm · #7 (**permalink**) 01-28-08, 09:55 AM

I'm not a big fan of purchased warranties. They don't sell them because they are your friends and want to help they sell them because they are big money makers.

charlieMc · #8 (**permalink**) 01-28-08, 10:07 AM

We plan to put a lot of miles on our CTS so we got the 100K/5y warranty for about $2k with $200 deductible or we could have gotten $0 deductible for about $2600.

Zymurgy · #9 (**permalink**) 01-28-08, 10:10 PM

Quote:

Originally Posted by beerme1

... That taught us all a lesson in that we will buy extended warranties only from the factory. No third parties ...

Hate to break this to everybody, but GMPP is NOT a factory warranty. It IS a third party warranty (actually, these are not warranties, but insurance policies).

From gmprotectionplan.com: "The GM Protection Plan is fully insured by member companies of GMAC Insurance Holdings, Inc. When you buy a service contract, you transfer the risk of future repair costs to a company, trusting them to pay your covered repairs sometime in the future."

GMAC used to be a wholly owned subsidiary of General Motors. However, on November 30, 2006 GM sold 51% of GMAC to a consortium of investors.

Like any insurance policy, a GMPP "extended warranty" it is only as good as the company behind it. Insurance companies are rated by services like A.M. Best.

I'm not trying to warn people to avoid GMPP, I just everybody to really know what it is they are buying and how to determine the ratings of the company behind the policies.

beerme1 · #10 (**permalink**) 01-29-08, 10:05 AM

Quote:

Originally Posted by Zymurgy

Hate to break this to everybody, but GMPP is NOT a factory warranty. It IS a third party warranty (actually, these are not warranties, but insurance policies).

From gmprotectionplan.com: "The GM Protection Plan is fully insured by member companies of GMAC Insurance Holdings, Inc. When you buy a service contract, you transfer the risk of future repair costs to a company, trusting them to pay your covered repairs sometime in the future."

GMAC used to be a wholly owned subsidiary of General Motors. However, on November 30, 2006 GM sold 51% of GMAC to a consortium of investors.

Like any insurance policy, a GMPP "extended warranty" it is only as good as the company behind it. Insurance companies are rated by services like A.M. Best.

I'm not trying to warn people to avoid GMPP, I just everybody to really know what it is they are buying and how to determine the ratings of the company behind the policies.

Excellent advice!!
I appreciate your info and wonder though if they are fully insured by GMAC wouldn't that negate the risk?

Willy

malcolm · #11 (**permalink**) 01-29-08, 12:10 PM

two grand for an extended warranty with several hundred dollars deductible?? You are better off banking that cash in the slim chance you will need a major repair and when you don't you are now 2K to the good.

Bender · #12 (**permalink**) 01-29-08, 01:49 PM

Quote:

Originally Posted by beerme1

Excellent advice!!
I appreciate your info and wonder though if they are fully insured by GMAC wouldn't that negate the risk?

Well, the WSJ just ran an article criticizing Cerberus Capital (the firm that bought 51% of GMAC) for the performance of GMAC and Chrysler as investments.

From the WSJ: "In the third quarter of 2007, GMAC posted its largest quarterly loss in its 88-year history because of a $2.3 billion loss at Residential Capital LLC, its home-lending unit known as ResCap. Investors and analysts said Cerberus and General Motors Corp., which still owns 49% of GMAC, might have to inject more capital to keep ResCap afloat. A large provider of subprime loans, ResCap is the second-largest independent U.S. mortgage lender."

Having said that, even if GMAC were to fail, somebody would presumably buy up the insurance policies. I would worry less about GMAC's solvency than I would about whether an extended warranty makes financial sense.

auraph · #13 (**permalink**) 01-29-08, 02:32 PM

For those who don't already know this - 80% of Chrysler Group was sold to Cerberus Capital Management for $7.4 billion last year. This may or may not have any influence on the insurance end of the business, since the warranty insurance is generlly profitable. It's the mortgage part of the business that is in trouble and as Bender said above, the warranty end of the businees could be sold to other insurance companies if Cerberus needs capital. Again, the warranties are good for those who need the piece of mind, but they are big dealer profit items. Check the advertisers on this site for discounted GM warranties if you are seriously considering the warranty.

chjw · #14 (**permalink**) 01-29-08, 03:13 PM

Long story short. Son in law had expensive and broadest coverage after market warranty on used pickup. The head cracks. Insurance company paid to tear down motor for diagnosis and replace the cracked head but would not pay to put the engine back together or to clean antifreeze from rest of the engine as a result of the cracked head. The parts just were left laying on the floor and the kids had no money to put it back together again. Here the story gets longer, but the short version is I had to sue them to get them to do what they clearly should have done to start with. Since I'm an attorney, and he was my son in law, and I was pissed, I donated my time. Otherwise, unless there is an attorney in the family, the insurance companies just get away with ripping off people they know can't do anything about it. I would NEVER buy such a policy. Caveat emptor.

AVControlFreak · #15 (**permalink**) 01-30-08, 01:52 PM

Quote:

Originally Posted by chjw

Long story short. Son in law had expensive and broadest coverage after market warranty on used pickup. The head cracks. Insurance company paid to tear down motor for diagnosis and replace the cracked head but would not pay to put the engine back together or to clean antifreeze from rest of the engine as a result of the cracked head. The parts just were left laying on the floor and the kids had no money to put it back together again. Here the story gets longer, but the short version is I had to sue them to get them to do what they clearly should have done to start with. Since I'm an attorney, and he was my son in law, and I was pissed, I donated my time. Otherwise, unless there is an attorney in the family, the insurance companies just get away with ripping off people they know can't do anything about it. I would NEVER buy such a policy. Caveat emptor.

Thank you for your insight! I was on the fence when I read your post. I won't be buying any extended warranty now. Reality is I've really never heard of anyone really enjoying the purported benefits of the extended warranty.

Caveat Emptor. Yes sir!

DCB