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GM increases used car warranties to bolster sales, residuals

08/19/2008, 6:36 PM

By Drew Johnson

One of the biggest knocks against General Motors as of late is the poor resale value of its used vehicles. GM has already greatly reduced the number of vehicles it sells to daily rental companies – which will prevent a flood of GM cars on the used car market – and today the Detroit automaker announced another initiative to bolster the value of its used cars.

Effective September 13th, GM will launch a new 12-month/12,000 mile bumper-to-bumper warranty for all GM Certified and Saturn Certified used vehicles. The previous warranty only covered certified used vehicles for 3-months or 3,000 miles.

In addition, GM raised the mileage limit on its certified used vehicle program to 75,000 – an increase of 15,000 miles. Although the age limit on GM’s certified program will remain at six model years, Saturn’s coverage will be extended to six model years, up from five.

“We believe this 12/12 bumper-to-bumper warranty will grow our business as well as help reinforce our residuals,” Brian McVeigh, general manager of GM’s fleet and commercial operations, told Automotive News.

GM Certified covers Buick, Pontiac, GMC and Chevrolet vehicles, while Saturn’s program is run separately.

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08/19, 6:43 PM

posted by:

johnnycanuck

Eh, what the f*ck. Can’t hurt anything, but if they think that’s going to have any dramatic effect on resale value they need to go back on their meds.

08/19, 7:08 PM

posted by:

megeebee

Who chooses the pictures to accompany the story here, anyway. A Pontiac Sunfire?

08/19, 7:56 PM

posted by:

ktulu

sunfire is garbage. This us a hgood idea.

08/19, 11:10 PM

posted by:

DeansterTJ

Good luck GM, like anyone gives two shi.ts about an extra 15,000 miles. This is like a piss in the ocean.

08/20, 1:17 AM

posted by:

olds307

Sunfire/Cavalier was/is a good car……. much better than a POS Dats…..NISSAN Sentra!!!

08/20, 8:31 AM

posted by:

carstuff

“like anyone gives two shi.ts about an extra 15,000 miles. This is like a piss in the ocean.”

ok, what are you talking about? This extends the number of available vehicles to get this new extended warranty. Now a vehicle can have 75000 miles (was 60000) and still get the warranty. Gotta be a lot of used vehicles with mileage between 60k and 75k ou there.

08/20, 11:00 AM

posted by:

fuk-u-asshole

pontiac sunfire, that is one nasty POS.what a fukin pile of crap

08/20, 3:13 PM

posted by:

Need4SSpeed

We have an 01 Cavalier with over 120k miles and is still running… Haven’t replaced, engine, trans, or anything on it either…

08/20, 8:58 PM

posted by:

bimpy46307

Eh, what the f*ck. Can’t hurt anything, but if they think that’s going to have any dramatic effect on resale value they need to go back on their meds.

Comment by johnnycanuck,

Good luck GM, like anyone gives two shi.ts about an extra 15,000 miles. This is like a piss in the ocean.

Comment by DeansterTJ

THINK, BEFORE YOU SPEAK.

No meds needed here, but you should put the pipe down. This will have a dramatic effect on resale values because along with lowering the supply from rental car sales, GM is increasing value with the peace of mind of knowing a vehicle has been inspected by a trained technician and backed by GM’s money with a warranty. Now when you trade in a car with 60,001 miles to 75,000 miles it will be worth more because if it meets or can be reconditoned to meet, GM Certified standards, it will now have a national warranty. That is like the ocean in your pisser. LOL Believe me when I tell you that there is a BIG difference between a car with 59,000 that can be GM Certified and a car with 60,001 that could not have been before. Not to mention GM gives 2.9% to 4.9% financing on a lot of GM Certified vehicles. You should check out the newer vehicles from GM. They are as good if not better than the imports in quality and design. I think GM even has like 20 vehicles that get 30 MPG or more. Even the import loving magazines and shows have to finally admit that America is building some of the best vehicles on the road. The other thing to consider is the imports are not getting the automatic best pick anymore without being tested because of quality problems.

Just look at the warranties. GM is not going to back it’s cars with a 100,000 mile warranty if it thought it was going to have to keep fixing them. DUH!! GM is fighting public perception that it builds lower quality cars than the imports. The head of GM admits, that was true in the past, but it hasn’t been the case in years. That is why they put their money where their mouth is.

Toyota and Honda have no roadside assistance on new cars. I think they do on certified. Which puzzles me. Why not on new then. Honda has no courtesey transpertation and Toyota’s has hoops to jump through, listed as follows;

“You may be eligible for transportation assistance if it’s necessary that your vehicle be kept overnight for repairs covered under warranty. Please see your authorized Toyota dealership for further details.”

Toyota’s and Honda’s warranties both end at 60,000 miles and Honda even has exceptions to it’s no deductible policy.

There are a couple longer warranties out there, but they are only for the first person who purchased the car, not the car. They are playing the odds that you will trade in or sell it before it gets into higher mileage and they have to start paying to fix problems. GM’s warranty goes with the car, not the owner. You could sell it 20 times and it would still have a warranty. Nobody else backs a vehicle like that.

I have owned many different vehicles, including a couple Toyotas. They are good, but they are no better than GM. Little things, like the doors feeling like a tin can and noise. But I had to try. They do however, do a fantastic job getting their owners to do the regular maintenance when they are supposed to. That makes a vehicle last a lot longer. I have seen many many american cars with 150,000 to 250,000 miles that still run like a dream because they were maintaned the way they should. But honestly, alot of american car owners used to run the car into the ground and then would complain that it was the car maker’s fault. Again, very puzzling.

Every day, about one million North Americans earn their living by helping GM build and sell cars in North America.
Toyota employs only about 30,000 people in the US.
GM is currently the largest producer of E85 vehicles in the USA. E85 displaces more foreign crude than any current hybrid technology.
For every 37 gallons of E85 ethanol used, you save one barrel of oil.

HERE IS THE BIGGEST ONE I LIKE.
Yes, it is true that Toyota and Honda and other foreign car companies may build a few cars here in the states, but the hard earned american money you spend on those cars still goes to those companies overseas, not here.

08/20, 9:46 PM

posted by:

olds307

For the record, TOYOTA is the best JAPANESE car. Honda is a close 2nd but the only thing uglier then their exteriors are their interiors, and I’m not a big fan of their unconventional automatic transmission. Nissan/Datsun is just plain crap.

THAT SAID, there is nothing GM makes domestically (meaning Cobalt and better) that is bettered by Toyota. So unless your a total Toyota FANBOY, there is little reason to buy one over GM.

08/20, 11:40 PM

posted by:

johnnycanuck

bimpy: haven’t seen you on our little forum before, so welcome.

I’ve bought a lot of cars from dealers in my time, and If you honestly believe they actually perform those zillion point inspections before the cars are put on the lot you are living in a fantasy world my friend. Inspections cost money, and if the car has a clean history and the mileage falls within the parameters you can bet the vehicle was lucky to have even been test driven never mind put up on a hoist. I can put a piece of **** in a box and stamp it guaranteed but all you have is a guaranteed piece of ****. I’m not saying the warranty isn’t useful, but if you take the dealer’s word you are PT Barnum’s dream customer.

08/21, 12:36 PM

posted by:

bimpy46307

Thanks for the welcome johnnycanuck. I can speak from experience. As you probably can figure I work for a dealer. I have worked for 5 all together. (Moved a couple times.) And yes, I’ve heard the scary tales of a few dealers that will do what you say. One of the dealers I worked at was like that. It’s one of the million reasons I left.

There was even a dealer by me that went out of business because it was found out that they were not doing oil changes and other service work when customers brought their cars in. That’s why I stick with dealers with a good trusted reputation.

Anyway, the ones that I have been with since do the inspections on the cars. The one I am with now even makes sure the cars have all the accessories. Such as both keys, remotes, headphones and navigation discs, cargo nets etc. The dealer I am with now Certifies any vehicle it can. Great warranty and great rates help sell a lot of used cars.

The way I can say that we do the complete certified inspections on certifed cars, is because if an issue comes up on a car that should have been taken care of during the inspection, our service department gets the charge back, not the deal or the salesman. And it does happen on occasion. A tech is only human after all, but we do make it right. And that’s all you can ask for.

Also, I’m with megeebee. Who does choose the pics for these stories? No biggie, but why would you pick a car that is not made anymore and hasn’t been for a few years now?

08/21, 3:48 PM

posted by:

johnnycanuck

bimpy: if all dealerships were like yours many people would have a lot less trepidation when the time comes to buy a vehicle. I still prefer dealing with professionals rather than private sellers, but case in point when I bought our ‘02 Mustang earlier this year the first thing I did was check the air filter. The car only had 38k kms on it but it was still the factory filter and it looked like black death. Guess what was ticked off as OK on their inspection report.

 
 
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