We have 7k miles on our new 2003 Sierra and we are very happy with it. We are not big fans of buying the extended coverage contracts on vehicles. We'd like to hear some opinions of the GM extended coverage plans. We are particularly anxious to hear from those who bought coverage and can now say whether or not it paid.
Quick, before we go over 8,000 milies, should we bou the extension???
Thanks,
Mel
Every dis-interested party that has ever done a report on them agree, they are a rip-off. If you can talk the price way down, and I mean way down, it may be worth it. Make sure you read all the fine print on what it does and does not cover, and what your responsibilities are to keep it in force (You may be obligated to maintaining a very strict maintenace schedule, for example).
Wondering what 8,000 miles has to do with it? Unless GM has changed their plans in the last 1 1/2 years, you can purchase any plan up until you reach the limits of the factory warranty. (3-36 in the case of a GMC). I used to tell my customers the following: If you plan to keep the truck a long time, and/or drive a lot of miles, I would seriously consider the Major Guard warranty. That's the best one, the one that covers most everything. It's the only one I would recommend. The others leave too much uncovered. If you usually trade every couple or three years, and/or you don't drive a lot of miles; you are probably wasting your money on an extended service contract.
Of course the upper management didn't care for me advising customers this, they wanted me to push for every customer to buy one. I just wanted to be upfront and honest with every customer. It helped me get more return and referrals when I was a floor salesman. Just remember, don't buy anything but a GM warranty, and just like the price of the truck, the price of the warranty is negotiable.
Jerry H.-- retired GMC sales manager
I'm debating on the GMC Major Gard package vs. a similar program offered by First Extended Service Corp. I was told the latter was cheaper and covered more items with a better deductible system. Only downside was it was more of a hassle to find a repair shop. Any thoughts? By the way, I drove my last truck over 300,000 miles over 25 years, so I'll buy the optional coverage. But, I want to get a reliable package since it's pretty expensive.
Of course the upper management didn't care for me advising customers this, they wanted me to push for every customer to buy one. I just wanted to be upfront and honest with every customer. It helped me get more return and referrals when I was a floor salesman. Just remember, don't buy anything but a GM warranty, and just like the price of the truck, the price of the warranty is negotiable.
Jerry H.-- retired GMC sales manager
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#1 the cost of the insurance plan will more than cover the cost of any repair expected during the coverage period for 97% of the vehicles covered
#2 the insurance is a HUGE PROFIT MAKER for the dealer and GM. Typically half the extended warranty goes to the sales guy as commission.
Remember that the guy telling you about extended warranty plans is SELLING you your paranoia.
Put the money in the bank. Buy a GIC or a savings bond. Take it out if you need a repair. Cash it in at the end of your "extended" warranty and take a holiday.
Why pay now to let someone else have a holiday on your dime?
Cost of extended contract goes up at 8K and at 15K since you are buying a certain number of months & miles on top of what you have on vehicle at time of purchase.
Thanks for all the replies. Everyone has made me decide that my first thought was correct...just put the money away for future expenses rather than buy contract.
Thanks
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