Need quick advice
05-03-2016, 02:05 PM
#21
Instructor
The extended warranty is a profit center. It's no more than a dealer pack. If you look at a graph of electronics failures (since that seems to be a major concern), the graph will show failures for the first six months, then taper off to almost nothing by a year. The graph does not start up again until about the ten year mark, when the electronics are nearing end-of-life anyway.
Of course there is always a risk, but parts that are truly defective will show those defects fairly early on. GM and your dealer expect to both pay a commission for the sale (which is hefty) and also make a profit off your extended warranty, and that should tell you something.
Of course there is always a risk, but parts that are truly defective will show those defects fairly early on. GM and your dealer expect to both pay a commission for the sale (which is hefty) and also make a profit off your extended warranty, and that should tell you something.
05-03-2016, 03:04 PM
#22
Le Mans Master
Member Since: Jan 2006
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Took the words right outta my mouth. This is the first one I haven't bought the extended warranty on right out of the box. I never broke even on any I bought anyway. So, I'll give 'er a while to see how things go.
05-03-2016, 03:28 PM
#23
There are vast opinions on extended warranties and everyone wants to be an expert on this subject.
Many will say it's worth it, many will say it's a waste of money. The extended warranties are insurance policies against future breakdowns and expenses after the OEM warranty of 36 months or 36,000 miles is up. If you plan to keep the C7 for an extended period well over the 36 months, then perhaps the extended warranty is right for you.
Are there huge markups on these policies? Of course, there are. Do dealerships sales agents get paid a commission on the sale of the product? Sure they do. Are there deals to be had? Certainly.
With huge markups, there is plenty of room to negotiate a deal on the extended warranty.
I planned to keep my C7 for at least 7 years or until the C8 next generation emerges and then make a decision to trade, sell outright, or keep the C7.
The extended GM warranties are transferable to new owners of the car being sold whether traded or sold outright.
With that in mind, I shopped around, completed my due diligence and paid $1285.00 for the GMPP extended warranty for 7 years or 56,005 miles whichever comes first. I was quoted as high as $2000 for the same policy bought for $1285.
I got the best policy available, GMPP Major Guard. $1285 over the 7 years is only $183.57 per year for the security and protection of knowing I am covered. I consider it cheap as compared to the possibility of any future expense. I did not buy the policy from the forum dealership who sold me the C7. I bought the C7 in MO., I live in NM and bought the policy in MN.
It pays to shop around and compare dealerships. My $1285 spent will protect any downside in repairs after the 36 months. I will never have 36,000 miles within the 36 months so I feel good having the protection.
The policy is no different than having fire insurance on your home, it may never burn down. The policy is no different than automobile insurance, you may never have a claim. The policy is no different than a term life insurance policy as you may never die within the term life policy dates. It's insurance.
Do what you think is best, it's your money, your car, and if it breaks down after 36 months of ownership, you best be prepared to spend a lot for any repairs. The cost of labor at dealerships is totally crazy and expensive.
No, I will not answer any who ask "where did you buy the policy for that price". Do your own homework, spend your own time like I did. There are plenty of quality dealerships willing to sell the policies at very little profit.
...
Many will say it's worth it, many will say it's a waste of money. The extended warranties are insurance policies against future breakdowns and expenses after the OEM warranty of 36 months or 36,000 miles is up. If you plan to keep the C7 for an extended period well over the 36 months, then perhaps the extended warranty is right for you.
Are there huge markups on these policies? Of course, there are. Do dealerships sales agents get paid a commission on the sale of the product? Sure they do. Are there deals to be had? Certainly.
With huge markups, there is plenty of room to negotiate a deal on the extended warranty.
I planned to keep my C7 for at least 7 years or until the C8 next generation emerges and then make a decision to trade, sell outright, or keep the C7.
The extended GM warranties are transferable to new owners of the car being sold whether traded or sold outright.
With that in mind, I shopped around, completed my due diligence and paid $1285.00 for the GMPP extended warranty for 7 years or 56,005 miles whichever comes first. I was quoted as high as $2000 for the same policy bought for $1285.
I got the best policy available, GMPP Major Guard. $1285 over the 7 years is only $183.57 per year for the security and protection of knowing I am covered. I consider it cheap as compared to the possibility of any future expense. I did not buy the policy from the forum dealership who sold me the C7. I bought the C7 in MO., I live in NM and bought the policy in MN.
It pays to shop around and compare dealerships. My $1285 spent will protect any downside in repairs after the 36 months. I will never have 36,000 miles within the 36 months so I feel good having the protection.
The policy is no different than having fire insurance on your home, it may never burn down. The policy is no different than automobile insurance, you may never have a claim. The policy is no different than a term life insurance policy as you may never die within the term life policy dates. It's insurance.
Do what you think is best, it's your money, your car, and if it breaks down after 36 months of ownership, you best be prepared to spend a lot for any repairs. The cost of labor at dealerships is totally crazy and expensive.
No, I will not answer any who ask "where did you buy the policy for that price". Do your own homework, spend your own time like I did. There are plenty of quality dealerships willing to sell the policies at very little profit.
...
Last edited by nmvettec7; 05-03-2016 at 03:33 PM.
05-03-2016, 04:20 PM
#24
Instructor
Hi Guys - I'm going to pick up my new C7 tomorrow (whew hoo!!).
I've searched and read other threads on this but I wanted some fresh perspective.
I have the option to purchase the GM (authentic GM) extended warranty for 7 years (bumper-to-bumper + powertrain) for about $2000 US dollars.
I've opted to pass since I won't be putting a ton of miles on her. My thoughts are if the car isn't a lemon in the first 3 years (with full coverage), then my break even point is having to spend $500 a year (plus deductible) on warranty issues - which I feel is a low risk.
Any other thoughts that may sway my decision? Thx!!!
I've searched and read other threads on this but I wanted some fresh perspective.
I have the option to purchase the GM (authentic GM) extended warranty for 7 years (bumper-to-bumper + powertrain) for about $2000 US dollars.
I've opted to pass since I won't be putting a ton of miles on her. My thoughts are if the car isn't a lemon in the first 3 years (with full coverage), then my break even point is having to spend $500 a year (plus deductible) on warranty issues - which I feel is a low risk.
Any other thoughts that may sway my decision? Thx!!!
