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 bought it for 2k Canadian. The electronics will be expensive. To me it was cheap insurance and if I sell the car it will come back to me.

 

Look for the discount offered by Ken before agreeing to what they are selling. Search for warranty and you should find his thread. I am using watchful waiting still after 4 K miles.

 

Does that 7 year warranty start from day one, which would be actually a 4 year warranty. There also is a mileage cap that goes with that warranty. I always wait until my 3/36 is close to running out and then get my GM warranty. A warranty is just insurance you may have to use it or you maybe not.

 

I wish I could but I'm in Canada.

 

I was thinking the same thing but usually the electrical gremlins are out in the first few years.

 

It applies for 7 years after purchase date with a 60KM cap on millage. Doesn't waiting usually mean the cost will go up?

 

I never buy extended warranties and I've never regretted it. You would need repairs totaling more than $2,000 (plus deductible) just to break even! These are USA made vehicles, and (relatively) cheap to repair compared to Euro models. Think about this, if the companies selling these extended warranties paid out more than the $2,000 it cost to buy the extended warranty, those companies wouldn't be in business long. Therefore, they must consistently pay out LESS than the price to buy the EW. Logic says NO to EW's.

 

Yes it does, but your 3/36 is free. I don't have a current price for an extended GM warranty but you should get more than a 4 year warranty (after the 3/36 runs out) for 2K. Maybe someone with an updated price sheet will check and let us know.

 

The same reason and logic I've never bought one!

 

Simply stated I agree with your thought process and decision.

 

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.

 

I chose not to buy the extended warranty figuring I'd have another opportunity at a later date - either from GM or aftermarket. If I have 3 years of great performance I'll go without an extension. For the time being I'm keeping the $2K

 

80k cap

 

will not be 2k when you want it . 2K was cheap insurance to me , to each their own.

 

Aftermarket warranties cover more and cost less... Buy it in 35 months

 

Again, it only makes sense to the company offering it if they know people pay more for it than the amount that gets paid out. So unless you live under a black cloud and are extremely unlucky, you're throwing away your money. As they say in the casino business, the odds always favor the house.

 

It doesn't make sense to purchase it when you buy the car. You have 3 years of B2B coverage that covers everything including stuff that isn't covered by the so called extended warranty. GMPP is changing to something else since GM is going with their own plan now. However, the Chevy plan may not be all that different than GMPP used to be. Wait until the B2B warranty is about to expire in just under 3 years. Then buy the no deductible plan.

There are a lot of people who say you shouldn't buy any type of warranty since cars don't fail that often. However, they forget about parts costs which can be outstanding.

When my 2008 Z06 was at that point I purchased a 7 year 56K added mile zero deductible plan for it. The $2500 I paid averaged out to one repair per year at about $350 per year. If you study the JD Power 3 year durability studies you can see it doesn't matter what brand car you purchase they all average at least one failure per year when they are over 3 years old. If you have paid for any repairs recently you know you can't get much done for $350.

In my case I recovered the initial plan cost in just two repairs when the Nav system failed twice. The total parts cost for those two Nav units was more than the cost of the extended warranty. Everything else was gravy after that. I made more money with that investment than any other investment I ever made.

Bill

 

Thanks everyone for your quick responses. I'm going to hold off for now. I'm off to pick up my new ride

 

Absolutely, YES!