I've been looking at the General Motors Protection Plan--Major Guard--on new cars. I may be missing something, but it makes no sense to me to buy it when your purchase the car. Since GMPP is the same cost at day one or at day 365 (assuming 12,000 mis. or less), why not buy it toward the end of the first year of ownership. After all, GMPP starts at the time you purchase it, not when the car was put in service.
For example, if I buy a 60-month, 60,000 GMPP after 11 months of ownership and 10,000 miles, Major Guard is 60 months from that point--so it extends to the 71st month of ownership and 70,000 miles.
The only danger I see is if the cost of GMPP is increased in the interim. But the dealer I got quotes from has the prices locked in through October. So at the very least, you can get the current price for six months.
Maybe somebody knows something I don't know. But once again makes no sense to me.
04-17-05, 11:08 AM
In many cases, people who finance their cars would include the price of Major Guard into the monthly payments. This is the only advantage I see.
And in some cases, when you agree to buy Major Guard up front when purchasing the car, you can actually deal a little bit on the price of the car and/or warranty, YMMV.
So does the price increase after 1yr/12k of ownership (since I'm past that point already), I ask bc I was NEVER offered GMPP by my selling dealer even after I directly asked about it.
04-17-05, 04:19 PM
benjet, I was told at the time I purchased my V, I could get it at any time while the car is still under factory warranty.
04-17-05, 05:03 PM
This is the third car that I had/have the GMPP. The first car, a Ponitac, I bought with the car. It paid for itself after 76,000 miles. The Ponitac wasn't unreliable, but I bet you will agree that somethings you'll fix under warranty can wait when it is not under warranty. A bad fuel sending unit and ignition switch was the biggest things, which cost around $1000 in parts/labor if I had to pay for them. Both problems allowed the car to be driveable though.
The 2nd vehicle (my Trailblazer) I bought the warranty later on. It is a lot easier to finance the money at first than to pay for it later on.
The dealer does NOT have to give you a rental car under the basic warranty. They do under GMPP. They usually do with Cadillac, but they don't with Pontiac or Chevy.
Also the warranty doesn't start when you buy it but when the car was first put into service. If you buy the car in 2005, the 6 year/100,000 mile warranty will expire in 2011 or 100,000 miles no matter when you buy it. The warranty won't last till 2015 if you buy it at the 4 year mark.
If you sell the car, you'll get the money you paid for the warranty back on a prorated basis. I'm waiting for the check for my Pontiac's.
And as pointed out, the price may go up (after Cadillac figures out that the rear ends go bad often) or they don't have to provide the warranty at all.
If you plan on dumping the car in less than 4/50 than it is not worth it. I knew that when I test drove my V, it was a keeper. How many sedans can you buy that win races often and that the race version is somewhat close to the stock non-race car?