Extended Factory Warranty Bizarre Experience

davidhughrose · October 4, 2008

My 06 Silverado is 2 1/2 years old now but with 38K mi, it's off the factory warranty. I've been receiving mail from GM with outrageously expensive offers to extend my factory warranty during my entire ownership experience. They stepped it up recently by calling me. So I finally take a call from a GM warranty rep and the whole experience seemed surreal. Of course I'm interested in more factory coverage if the price is right. The initial offer of about $3K for 5 more years was a bit too much for my tastes. I knew before purchasing that if maintained properly and not abused, Chevy trucks are very solid, so the extended warranty is a nicety. Anyhow, he asks me why I'm not accepting, and when I tell him the price, he lowers it! He eventually worked it down to $2,200! When I refused that and told him it still wasn't a good enough offer and 'thank you very much,' he proceeds to tell me that GM's strategy is to sell their pickups at cost, knowing that they'll have expensive problems down the road, and that's where they'll make their money! Any truth to this?!

VMax2007 · October 4, 2008

None whatsoever. GM trucks are one of the (if not "thee") highest profit vehicles they sell.

c4cruiser · October 4, 2008

It sounds as though the phone sales guy (probably a call center with people who are contracted to sell services) reached his limit for lowering the price. And his comment would certainly get his azz canned if he was a GM employee if the higher-ups heard about what he said.

I would bet that you can shop around for much better deals on the GM extended warranty. One good place I have found is Fitchner Chevrolet in Laurel, MT. You can buy the extended warranty at any dealer and still have work performed at any other dealer.

Whether or not you need the extended warranty is up to you, but if you have a major powertrain failure (like an engine or tranny) three years from now, it's going to cost you a lot more than the $2,200 for the waranty. Of course, any work done under that warranty would be a a dealership, so how you see dealers and their service departments will play a role in any decision.

pm26 · October 4, 2008

My truck too is running out of factory warranty and if I keep it, I might consider extended warranty, but only if it is a bargain. $ 2k or 3k is utterly ridiculous. There should be something for about $ 1,000 for additional 3 years/36k miles or so.

07 CC Sierra · October 4, 2008

Check out http://www.gmoutlet.com/

I haven't bought one from them (yet) but I found them on here using the search function. A few people have bought warranties from them and were satisfied. A 3yr/36 for my truck would be well below $1000 depending on deductible. Email them and they reply instantly with their prices for the GMPP Major Guard.

davidhughrose · October 4, 2008

Thanks for the info and tips for other extended warranty options! I'll check it out and report back if it's worthwhile.

Dave

Rosedog · October 6, 2008

Thanks for the info and tips for other extended warranty options! I'll check it out and report back if it's worthwhile.

Dave

You walked away from $2k extended warranty? I'm reupping my extended here soon, well woth it IMO.

Things my extended warranty cover in my 03 Silverado: Tranny 1.5yrs ago, some switch in my HVAC (was only getting heat in the summer), dead lights in the dash and HVAC controls. Got all that fixed and more plus the extended warranties usually cover a rental too.

I've found it to be the best investment in my vehicles.

robertbick · October 6, 2008

Extended warranties are a money maker for GM (or whoever is selling them). Just think about it... on average, if they were losing money, they would not be selling them. There are those that come out ahead by purchasing one, but the majority of car/truck owners do not get back what they invested in them.

csheatz · October 6, 2008

I have got the extended warrenty on my last truck and my wifes car, and have had nothing done, so I didnt get it for this truck, also in my consideration was the fact that we get the 100,000 mile 5 year powertrain warrenty. My wifes car is a 2005 it has 93,000 miles on it and all I have ever done is 1 set of new tires and front brake pads at 70,000 miles, and oil changes every 6-7k. We paid about $1400 when the car was new for a 4/year 100,000 mile warrenty. I told the dealer I am not paying for the 5th year because the car will hit the mileage before the 5 years, so they dropped it a few $$ and to 4 years. not once have we been able to use the warrenty and by xmas it will be over 100,000 miles.

I want to believe that if you take care of the car/truck it will last a long time with little to no major repairs needed. Although sometimes we buy a vehichle that arrived on the "short bus" and needs more attention then it should.

sonjaab · October 6, 2008

Its awful funny .................The website states that you can only purchase a GMPP

extended warranty ONLY while the vehicle is under the mfrs. 3/36 (or 4/50 caddy)

new car warranty.

Yet you have 38k miles and they are offering you one?

If your having problems..grab it !

minibike132 · October 6, 2008

What was the exact name of the company. I have only once seen a General Motors Protection Plan sold outside of the warranty and the reason was because an aggressive customer wanted it and paid for a preplan inspection. That was very rare, I can not see any GMPP employee saying something of that nature. Was the exact name of the company General Motors Protection Plan or just GM protective or something of that nature. I would sure like to see one of those letters if you have a scanner.

On to the GMPP, I love them and I get them on all of my vehicles. On only one vehicle has it not paid for itself but the other repairs I had made up for that one. IMO it's the best warranty out there because it is an extension of the factory warranty and basically the only thing it doesn't pay for is trim and maintenance. All of the others have alot more that they do not cover and they usually give us a hard time about paying even if the customer never hears about it. Lets face it the aftermarket warranty companies are nothing more than insurance companies and we all know how easy it is to get one to pay what it should be paying for.

stadt11 · October 6, 2008

I purchased an extended warranty for my own personal "piece-of-mind". I had $1500 in warranty repairs done in the first 3-months/6k-miles of ownership this summer (i-shaft, driveshaft, u-joints, hood insulation, rear gears, and a few others).

It's just my luck to have problems b/w 50-75k miles on my last 2 vehicles, that is why I bought it.

Neutron · October 6, 2008

I bought the GMPP best warranty the dealer offered for my 2007 GMT900 and because I had purchased a vehicle from them before I got it for $900. It gives me peace of mind. The way I'm driving it, I'll meet the year before I meet the mileage.

07 CC Sierra · October 7, 2008

I bought the GMPP best warranty the dealer offered for my 2007 GMT900 and because I had purchased a vehicle from them before I got it for $900. It gives me peace of mind. The way I'm driving it, I'll meet the year before I meet the mileage.

How many miles/years is your warranty good for?