Extended warranties
Safety Car
Joined: Oct 2014
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You can still get GMEPP, but you must pay the "used car" rates.
General Motors never officially sold any extended warranty. It always has been sold by the "captive" finance arm of the company (originally GMAC now Ally with GMPP, now GM Financial with GMEPP).
Contrary to popular belief "captive" finance arms are distinct corporations all the way up to the CEO level (the CEO of the "captive" reports to the OEM CEO because the "captive" is a legal subsidiary). They also usually have different compensation and bonus plans, so while most consumers view the finance arms and the OEM as the same company, they really are not.
General Motors never officially sold any extended warranty. It always has been sold by the "captive" finance arm of the company (originally GMAC now Ally with GMPP, now GM Financial with GMEPP).
Contrary to popular belief "captive" finance arms are distinct corporations all the way up to the CEO level (the CEO of the "captive" reports to the OEM CEO because the "captive" is a legal subsidiary). They also usually have different compensation and bonus plans, so while most consumers view the finance arms and the OEM as the same company, they really are not.
1000% Correct. Nice to see someone actually knows the difference.
Last edited by nmvettec7; Sep 17, 2017 at 12:52 AM.
Team Owner
Joined: Oct 2004
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I purchased my GM Major Guard extended warranty via Ally and a GM Dealer in eastern Minnesota (Stillwater Motors, Stillwater, MN). When I take my C7 into the GM dealer here in New Mexico (Bravo Chevrolet), the GM Major Guard policy has been integrated into their computer system at my local dealer. No problems what-so-ever.
And yes, even in the old days, it was well-known that extended warranties were sold by GMAC, and that it was an entirely separate company from GM, the vehicle manufacturer. However, the salient issue for consumers is not who owns the company, it's whether their claims are handled entirely by the dealer. That is decided in large part according to whom GM has decided to partner with, but while Ally's GM partnership agreement is over, individual dealers can operate their businesses as they wish and work with Ally, Geico, or whomever they choose to process claims with.
This discussion is really only pertinent for someone making a decision today about the best bet to buy a long-term plan from going forward.
Last edited by Foosh; Sep 17, 2017 at 01:25 AM.
