General Motors Increases Certified Pre-Owned Warranty

POSTED BY Gregg on Aug 20 under Certified Pre-Owned, Warranty Coverage Changes

Facing tough times, GM is looking to increase the sales of certified pre-owned vehicles with changes to the program.

Warranty coverage will go up to 12 months or 12,000 miles, whichever occurs first from the current 3 months or 3,000 miles, whichever occurs first. Warranty coverage will be bumper to bumper including roadside assistance and courtesy transportation minus coverage for wear items. The warranty has no deductible and is transferable.

This only applies to Buick, Chevrolet, GMC, Pontiac and Saturn vehicles. Cadillac, Saab and HUMMER have their own certified pre-owned programs that already offer additional warranty coverage.

The new warranty coverage and other changes will become effective on September 13, 2008.

Currently vehicles that are either current model year or from the past 5 model years and less than 60,000 miles are eligible to be certified. Once the enhancements to the program kick in, vehicles that are either a current model year vehicle or from the past 5 model years and less than 75,000 miles are eligible for certification.

For vehicles that are certified but still within the new vehicle warranty period, the warranty coverage will be extended 12 months or 12,000 miles beyond the new vehicle warranty period. For Chevrolet, GMC, Pontiac, Saturn, and Buick (up to 2005 model year), coverage would go from 3 years or 36,000 to 4 years or 48,000 miles from the original in-service date. For 2006 to current Buicks, the coverage would go from 4 years or 50,000 miles to 5 years or 62,000 miles.

Vehicles that are certified outside of the new vehicle warranty period, the coverage will receive a flat 12 months or 12,000 miles from the date the vehicle was sold as certified pre-owned.

GM vehicles certified and sold on or after March 5, 2007 also receive a 5 year/100,000 mile, whichever occurs first, powertrain warranty along with roadside assistance and courtesy transportation.

There is one hitch to the program. In some cases, a vehicle that is sold as certified between 4 and 5 years since the original in service date will go through a wild ride in coverage.

Up to that five year point, you will get the 12 month/12,000 mile bumper to bumper coverage along with the 5 year/100,000 mile powertrain coverage, roadside assistance and courtesy transportation. But somewhere along the line, during that 12 month coverage, the 5 year/100,000 mile powertrain coverage will come to an end. It could happen two months into your ownership of the vehicle or eight months or any other point in time during the 12 months depending on when the vehicle was sold to the original owner.

For most of the GM Certified Pre-Owned vehicles, they will receive roadside assistance and courtesy transportation for the initial 12 months/12,000 miles and will also receive it as long as they’re within the 5 year/100,000 mileage coverage period. The only difference is, courtesy transportation will be available for bumper to bumper repairs during the 12/12 but only for powertrain warranty repairs after the expiration of the 12/12 coverage but within the 5/100 time period.

You will have to ask your dealership what the original in-service date is when you purchase the vehicle to really know what coverage you will receive and how long it will last.

This isn’t a new hitch. It’s been one that has been part of GM’s Certified Pre-Owned program since the 5 year/100,000 mile coverage was introduced in March 2007.

It’s expected this enhancement to the Certified Pre-Owned program will help with the residual values of vehicles as they come off lease so GM will see an additional benefit and lessen their losses on those vehicles turned in after the lease expires.

Don’t get me wrong. The GM Certified Pre-Owned program is a great program and one that will give you peace of mind when buying a vehicle. The increase in warranty coverage is a big boost but you do need to understand the ins and outs of the program to get the greatest benefits from it.