View Full Version : Extended Warranty and GM Bankruptcy

03-30-09, 06:15 PM
I just heard that if GM files for bankruptcy, we -- the US Taxpayers via the federal government -- will honor GM new car warranties. There is a thread here that discusses the fact that GMAC insures the extended warranties.
Any opinions about the wisdom of buying an extended warranty (GMPP) until the matter of bankruptcy is resolved, given the complications of bankruptcy on the dealer network and possible implications at GMAC?
Would a third party extended warranty make more sense?
Opinions, please.

04-01-09, 09:48 AM
News report said with GM in Chap.11, they would keep Chevy and Cadillac and discontinue the other brands.

04-01-09, 03:38 PM
Everything I have read says that GMAC will back up all of GMs warranties.

04-01-09, 04:46 PM
GMAC is a separate company all together - isn't it???

04-15-09, 10:51 AM
As with every bankruptcy the terms have yet to be finalized. Its up in the air as to how GM will deal with warranty claims. I have been to my dealer to get everything under the sun fixed on my 05 sts to make sure i dont get screwed. However perception is reality; how many CPO owners would buy gm again if there warranty's were not honored? not many, i certainly wouldnt. So this leads to the simply fact that GM must honor these warranties or tarnish there brand image. I am 99% confident all warranty's will be honored due to brand image.

GMAC is a separate company all together - isn't it???

04-15-09, 11:53 AM
The main reason I bought my 05 STS was because I wanted a CPO caddy with no worry about repairs unlike my Eldorado. If I get burned on this I'm going to be beyond pissed. That said.. I would think the fallout from them burning so many people on their warranty would do even more damage to their already tainted image.

I LOVE Cadillac and alot of other GM vehicles but it gets harder and harder to stick up for them. Between things like check engine lights that "have no fix" to even the small stuff like driving a Malibu or an Impala when I drop off my CADILLAC gets annoying. Losing my warranty would really be that final straw.

04-16-09, 08:20 AM
To update my original post in this thread, the Government wants GM to speed-up the closing of 1700 GM dealerships: http://news.yahoo.com/s/nm/20090416/bs_nm/us_gm_dealers;_ylt=ApA78zgt1B_PpTiqtuoUNFzZn414
Obviously, besides the concern about how GM filing for bankruptcy will affect original and extended GM warranties, that means that GM original and extended warranties will have 1700 fewer places to go for service and warranty claims. So, the GMPP looks less desirable, even without GM declaring bankruptcy.
On the other hand, I heard that U S Fidelis, a major third-party extended warranty provider, is in financial trouble.
Can anyone recommend a viable third-party extended warranty provider?
P. S. I also really like my STS and want to keep it as long as possible; but, given the numerous bells and whistles on the STS that can cost a bundle if they need repair, I cannot see keeping the car past the original GM bumper-to-bumper warranty unless I can secure a good, b-t-b extended warranty. Some good ideas already posted include ensuring that any slight problems are solved before the original warranty expires.]

04-16-09, 09:46 AM
The owners of defunct cars wind up at Cooter's Garage for the labor and the wrecking yards for parts. That's the way it's always been and always will be. Ask any Hudson, Nash, Studebaker, AMC, or Kaiser/Frazer owner.

04-16-09, 09:58 AM
Can anyone recommend a viable third-party extended warranty provider?

I purchased an extension, in 2001, for my '97 STS when it's original warranty ran out from a company called Warranty Direct. It was a 7yr/100K no deductible bumper-to-bumper and I used to the Very end ;)

Although not without making me sometimes jump some hurdles (they wanted to start using refurbed parts once the car was was like 7yrs old) they dealt with me fairly, paid the dealership Lots of money (over 6K total, 3K for head gaskets & timeserts alone), and all-in-all I was happy with them. They've been around a Long time....

I paid $1,250 in 2001 but for my '05 it went up to $4,000 so I went GMMP this time around. Time will tell if that was a good decision or not! :)

04-16-09, 10:22 AM
Cadillac will be particularly problematic because Cadillac owners have a reputation of being car poor skin flints that can't afford to own what they have. An aftermarket warranty will do you no good if there are no parts. Aftermarket parts makers only provide the popular parts for popular cars because they have to sell the stuff in volume to make any money. Some engine and transmission internal parts, ignition and fuel, and some electrical parts will be available. You can forget about suspension and crash damage parts except in the junkyard. Electronics including body modules and ECMs will be junkyard pulls. The cars will disappear one by one as each has its own particular unfixable failure and the survivors will surround it like vultures. The cars that hang around the longest will belong to those that can do their own work. The rest will fade away except for the few that will be brought out of storage every year for the Fourth of July parade to show the kids what America used to be like.

04-17-09, 11:08 PM
I have had good experience wih Zurich in the past. Warranty Direct is more high-pressure. Surf the web. There are some good pointers about auto warranties. Statistically, on these cars you may be better with a plan stated in terms of 'exclusions' rather than 'inclusions'. (i.e. they didn't specifically exclude HUD, so it's covered by the agreement.)

Any warranty involves a company that would prefer to avoid paying and a person that wants their issue covered. "Ya pays yo money and ya takes yo chances." With claims, be prepared to contend; be polite but firm.