GM: 100,000-mile used car warranties

GM: 100,000-mile used car warranties http://www.detnews.com/apps/pbcs.dll/article?AID=/20070203/AUTO01/702030382/1148
LAS VEGAS -- General Motors Corp. said Friday it will extend its
five-year/100,000-mile powertrain warranty to used cars going back to the 2002 model year, another move to convince customers that its cars and trucks are as reliable as those made by its Japanese rivals.
The warranties apply to all GM Certified Used Vehicles and are fully transferable. They become available March 1.
"This is what you'd expect from a company like GM -- a company that wants to remain a leader," said Troy Clarke, president of GM's North American operations who announced the deal in Las Vegas at the National Automobile Dealers Association annual convention. "Quality will not be a reason for people to not buy our cars."
The world's largest automaker has made strides in improving quality, but its cars and trucks still are widely perceived by consumers as inferior to Japan's Toyota Motor Corp. and Honda Motor Co.
The new warranty covers hundreds of components that comprise the engine, transmission and final drive assemblies. It applies to all GM Certified Used Vehicles from Buick, Chevrolet, GMC, Oldsmobile and Pontiac sold in the United States.
A similar offering soon will be made for Saturn vehicles, Clarke said.
The warranty will help GM in its fight to maintain its lead over a surging Toyota and keep its title as the world's No. 1 automaker because, Clarke said, a strong reputation translates to sales.
Dealers had been pushing GM to back used cars with a warranty, and the automaker wanted something that would help it stand out in a market where overall vehicle quality is good.
"The No. 1 thing a used car buyer is afraid of is problems," said Ed Bozarth, a Chevrolet dealer with eight Chevrolet outlets in Topeka, Kan., Grand Junction, Colo., and the Denver area. "This is a safety net. It's huge."
More importantly, the move is a statement that GM is confident its vehicles, even used ones, will hold up, said Tom Libby, senior director of industry analysis at J.D. Power and Associates.
"They would have had to compute the costs of doing this and determined that the cost was worth it," Libby said. "That right there tells you the quality is up."
GM also plans to bolster the online presence of its used vehicles by adding Cars.com to its online vehicle-listing program.
The move will effectively double the number of GM Certified Used Vehicles for sale on the Internet.
Certified Used Vehicles now come with a three-month, 3,000-mile bumper-to-bumper comprehensive limited warranty.
The powertrain warranty also includes a 24-hour roadside-assistance plan valid through five years or 100,000 miles.
Owners of Certified Pre-Owned Saabs and Hummers already get a six-year, 100,000-mile bumper-to-bumper limited warranty.
GM has been on a mission to improve the perception of its brands.
Like its domestic rivals Ford Motor Co. and DaimlerChrysler AG's Chrysler Group, GM is still working to overcome a history of selling vehicles notorious for their shoddy quality.
Turning that image around is vital not only to sell vehicles, but also to raise their resale values. Poor resale value makes vehicles less attractive to consumers and cuts into dealers' profits.
The first major move from GM came last fall when it announced that, beginning with 2007 models, it would include an enhanced powertrain warranty of five years or 100,000 miles on all new cars and light-duty trucks.
The company is also making strides in respected quality surveys. Toyota and its luxury Lexus brand won top honors in eight individual categories in J.D. Power and Associates' 2006 Vehicle Dependability Study, which measures customer satisfaction after three years of vehicle ownership. But several models from GM and Ford also were named the best in their segments.
-- "I have tried to live my life so that my family would love me and my friends respect me. The others can do whatever the hell they please."
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Has GM begun to listen?? Amazing!
Do you know if there is 'small print' or 'limited' catches to these new car warranties? Can we trust GM?
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snipped-for-privacy@nospam.nix wrote:

trouble. You will find a lot of unhappy customers who thought there car was covered only to find KIA used every excuse in the book to deny the warranty. They dick with the terms of the warranty and make up the rules as they go. people with destroyed engines out of luck. The definition of what constitutes "severe service" and how they use that to deny coverage. Brakes that only last 10K. Trannies that go if you look at them funny. A warranty is only as good as the company behind it.
Bob
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I have seen this happen for years. I specifically wondered if GM intends to work their warranties based on a Catch 22 philosophy.
What do you think?
Some of the extended warranties that one can purchase certainly functioned in this manner.
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snipped-for-privacy@nospam.nix wrote:

you have to use it. Not when you buy it. I would tend to think the big three would try not to screw the masses if there doing this to try to build up respect. But time will tell. And it always pays to read the fine print ahead of time when it comes to service intervals and who must do the service. This is where the kia got ya happened. If you did not do there "dealer only" service intervals religiously your warranty was essentially a worthless piece of paper. And it was non transferable to boot.
Bob
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I have found a number of complaints at Ripoff Reports on extended warranties. Seems that even if you read them carefully, you might have some surprises in store for you.
One guy claimed a repair under warranty, and it turned out to be an expensive one. The warranty company deemed the value of the car to be less than the warranty, and would only pay the perceived value of the car.
Almost sounds fair, doesnt it? But, you may owe a lot more on the car than the value they are willing to pay. And then you are left with not enough money to fix it.
The dude who bought this warranty never guess that this would happen to him.
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That what happens when one does not read the warranty, particularly aftermarket 'warranties' ;)
mike
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http://www.detnews.com/apps/pbcs.dll/article?AID=/20070203/AUTO01/702030382/1148
Yes, it is what I'd expect but did not deliver when I had a problem. It is too late in my case. Instead of the planned Buick purchase I bought a Hyundai. All they had to do was fix my seat when the car was less than 3 years old. I'll be buying another car in 5 years so maybe I can go back to GM at that point.
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Just goes to prove the old adage, known to every good salesman.. The last question a customer asks before signing on the dotted line is always..."How much is the monthly payment?" LOL
mike

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Why would you go back to a company that screwed you? Fool me once, shame on you. Fool me twice, shame on me.
Double tap
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For many years I drove and liked GM cars. I still think they are a good car for maybe 30,000 to 50,000 miles, but not for high miles, long term. If I drove 10,000 a year and traded every three or four years I would not have many of the problems I have now. My Regal was good for 16 years and 150,000 miles, my Cutlass was 14 years and 185,000 miles, but I'm afraid of the newer models.
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OK, the car might still be good for your specific need, but why would you give the bastards that intentionally screwed you a second opportunity to screw you again. It just does not make sense to me.
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another car for a few more years. If the SOB that screwed me is gone, and I like the new models, I'm open minded enough to buy what is best for me. I'd rather see the US automakers stay in business and keep American workers employed. I really hope that GM and Ford get their stuff together.
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Others will tell you American workers also assemble some import brand in the US. What the wont tell you is GM and Ford built most of what they sell in the US, in the US, while the import brands import more than half of what they sell. The wont tell you those far fewer Americas assembling those import brands, of mostly imported parts, are compensated at rates far less than workers in domestic plants ;)
mike
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Don't be, the stuff GM is building today is the best they have ever built. Corporate fleets run GM vehicles to 300K or more, but then again they do the proper preventive maintance.
mike
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That is what worries me. I'd find it easier to believe you if my 2001 LeSabre was not falling apart. I have the back windows held up with sticks of wood, the cruise control button is held in the "on" position with a toothpick, transmission was rebuilt, falling acorns put dents in the sheetmetal, some door gasketing has worn through, etc, etc. Parts wear, but IMO, this is too much little stuff in five years.
I honestly don't know if other brands are better, but I'm going to find out first hand. I'll report back in a couple of years as it will take that long to find out.
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Edwin Pawlowski wrote:

You better catch them acorn throwing squirrels, You might need them under the hood when the motor goes.......... ;)
Bob
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