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Would you like GM to offer a better warranty from the Factory?

  • Yes

    Votes: 9 60.0%
  • Only if no premium is added to the vehicle

    Votes: 5 33.3%
  • I would rather fix cars on my own

    Votes: 1 6.7%
  • NO, GM vehicles are flawless!!!

    Votes: 0 0.0%
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Discussion Starter #1 (Edited)
I think GM could better its reputation for quality if they offered a 7 year 70,000 mile warranty or equivalent like Chrysler has. That crossfire does look impressive, especially when backed by that warranty and Benz powertrain.

Would you rather GM adopt a better factory warranty?
 

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They used to have a longer warranty period years ago.

Mitsubisi is in trouble but has just put a longer warranty on their cars to give the impression that they now have cars of quality and reliability.

I wonder if it isn't just a PR game they all play?

But, yes I would like it if they offered a longer standard warranty.
 

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They do offer an extended GMPP warranty..

If you want it ? You pay extra for it. I purchase from Ken Fitchner Chevrolet.

He's got the best pricing on GMPP warranties and because he's in Montana theres no sales tax either.

I usually buy in the 35th month of ownership just before the original GM warranty expires..

You can choose a 200, 100 or zero deductible.

It based on projected miles and there are various choices.

My 99 C5 I took an additional 36months and a total of 50K miles with a 200 dollar deductible for around 800 dollars..so it was like 260 a year ...or less than a dollar a day..

I sold the car early on, maybe 42 months ? got back almost all of my extended warranty costs...It was pretty cool.

With the Z06 I took the same 72month (extra 36months/ and a total of 50K miles..) with the zero deductible for around 1200 or 400 a year..

A little over a dollar a day..

haven't used it yet...but I'm glad I got it..

Worth a buck a day for piece of mind.

Window regulators...bcms ...fuel tank sending units...any of them could go and cost hundreds or close to a thousand..

Each car's GMPP warranty is different..and I know they just recently changed the program..

But I would recommend contacting Ken Fitchner Chevrolet...before buying anywhere esle..

Great pricing on GMPP warranties...even for the Solstice..

IF I buy a solstice ...I'll buy my GMPP warranty from Ken Fitchner..
 

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JohnnyBoy said:
I think GM could better its reputation for quality if they offered a 7 year 70,000 mile warranty or equivalent like Chrysler has. That crossfire does look impressive, especially when backed by that warranty and Benz powertrain.

Would you rather GM adopt a better factory warranty?
I am not sure the warranty gives anyone a feeling of confidence in quality. Also, I do not think GM's poor quality reputation is tied to anything that a long term powertrain warranty would protect anyway. Their engines last well past 100K miles, and their transmissions are some of the most reliable in the industry.

As the owner of a Chrysler product (2002 Jeep Wrangler Sahara) which came with the free Chrysler 7/100 powertrain warranty (now 7/70), I have to say it isn't worth the paper its printed on. Chrysler is one of the worst companies to get warranty work done, and its not the dealers but the corporation. They do not pay dealers well for warranty work performed, and refuse to pay for work performed if they deem it unnecessary. So dealers hate to do anything that is not an obvious defect. Also, they will certainly demand full documentation on all maintenance for the life of the vehicle if you ever needed to use that 7/70 plan down the road, and you better have receipts for every oil change and they better have been done on time and within the alloted mileage in the manual.

I just don't like extended powertrain warranties. They have a deductable (I think Chrysler's is $50) just to have the dealer look at something. They cover just major components, engine/tranny internals, etc which rarely fail on modern vehicles within the warranty time limits. They are also of dubois value since the car is covered under a 3/36 plan, your really just getting a 4 year 34K powertrain coverage. Those offered from the factory, especially Hyundai, Kia, Isuzu, Mitsubishi, are offering them because their cars are not reliable, and people just won't buy them. But I do not think it gives the impression their vehicles are reliable, just that you may not have to pay the repair when the car breaks (although you will still be without it).

I wouldn't be swayed by the powertrain warranty, but there is something GM could do to sway me. Increase the bumper to bumper warranty. Its 3/36, and covers everything including things that are far more likely to go bad. Wheel bearings, alternators and starters, accessories, trim, etc. Since GM's poor quality rep is for accessory components and fit and finish, I think a longer basic warranty would help a lot more. Say they bump it to 4/50, which is what a lot of premium brands offer (such as Acura). Maybe it would bankrupt GM, but it certainly would be a much more useful warranty for the consumer than tacking on a few years of powertrain coverage.
 

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Doesn't KIA offer 10/100,000 BtB warranty?

I head from someone who heard Bob talk to employees at GM a year or two ago that they studied warranty increases, but that since they were not effective at selling more cars (according to the study, it had no effect on the purchase decision), the added cost to GM of matching Korean mfr. warranties did not make a good business case.

The business case means: no added sales, no effect on reputation ergo no extra sales, no affect on JD Power ergo no extra sales, no special considerations at Consumer Reports ergo no special dispensation for the coveted 'recommended buy' ergo no extra sales...
 

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solsticeman said:
Doesn't KIA offer 10/100,000 BtB warranty?

I head from someone who heard Bob talk to employees at GM a year or two ago that they studied warranty increases, but that since they were not effective at selling more cars (according to the study, it had no effect on the purchase decision), the added cost to GM of matching Korean mfr. warranties did not make a good business case.

The business case means: no added sales, no effect on reputation ergo no extra sales, no affect on JD Power ergo no extra sales, no special considerations at Consumer Reports ergo no special dispensation for the coveted 'recommended buy' ergo no extra sales...
I dunno about Kia's warranty details, maybe it is BTB. However, if there is no real net effect on sales from a warranty increase, it would be a total waste of money for GM.

Besides, GM gets blamed for quality issues, but their brands are always midpack for Pontiac, Chevy and near the top for Caddy and Buick in the various JP Power, Consumer Reports etc dependability studies. Thats hardly bottom of the barrel stuff. Exciting products alone should easily reinvigorate GM sales.
 

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Most actual defects are going to show up 3 years/36k but who wouldn't want a longer warrantee if it didn't cost more? It is very hard to collect sometimes but if you ride them, you can get it done.

My wife had a Saturn SW2 that she bought new in '93. after about 25k miles it began to use a ton of oil. The problem was with the valve guide seals and the blow by was so bad that it would routinely cause carbon build up on the throttle body and cause the excellerator pedal to stick. A little carb cleaner would clean it off and solve that problem, but the motor was using about 1.5 to 2 quarts of oil every 3k miles. The response from Saturn? They said that was within specs.

Well long story short, we bitched enough that we finally got a new motor (had to argue there too, they wanted to give us a rebuild). After another 20k miles went by we started to notice oil consumption again and ditched the car quick, while Saturn still had a good rep and the car still had good resale value. She will probably ever buy another American car, and I won't try to persuade her again either (The Saturn was alot my idea). She now has a Subaru Legacy that she has put 115k miles on no problem. Too bad, I liked the Saturn much better.

Moral of the story? If you need to make a serious warrantee claim be prepared to fight and don't back down. The factory will try everything they can to try to keep from paying out. I'm sure this is probably true of all companies. Warrantees seem to be both nessasary and sales gimmick.
 

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Just read a story somewhere while searching for diagnostic codes for my Daughter's car, that said that the Kia warranty isn't worth ####. You know what it doesn't cover? Checking the diagnostic code when the "check engine light" comes on. That will be 75 bucks please.

They told the story of a girl who bought a Sorrento, and the light kept coming on. She would take it in, they would take her money, and then tell her the code said her gas cap wasn't on tight. She would bitch, and they would tell her sorry, not covered. This happened 3 times, the last time the light came on again on the way home from the dealer.

She put duct tape over the light.
 

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AztekzRpurty said:
Just read a story somewhere while searching for diagnostic codes for my Daughter's car, that said that the Kia warranty isn't worth ####. You know what it doesn't cover? Checking the diagnostic code when the "check engine light" comes on. That will be 75 bucks please.

They told the story of a girl who bought a Sorrento, and the light kept coming on. She would take it in, they would take her money, and then tell her the code said her gas cap wasn't on tight. She would bitch, and they would tell her sorry, not covered. This happened 3 times, the last time the light came on again on the way home from the dealer.

She put duct tape over the light.
I wonder if they were even telling the truthful code that was being set.

Many dealers will not tell the turth if they cannot figure out a problem. If this code was an emissions system code, and they were unable to properly diagnose what exactly was setting the code, they may have lied to that woman just to get her out the door without having to write up an invoice that could later be used in a lemon law case. If they admit to not being able to fix a problem, it makes a lemon law case easy. If they have it on record the problem was due to opperator error, its very difficult to prove otherwise.

Its unfortunate more people do not know more about their vehicles to prevent these things from happening. If I were to get an engine light, I would diagnose the code (either through my own code reader if I had one, or at advance auto for free) before going to the dealer for warranty work, just so I know what I was dealing with. But most people do not know enough about modern engines to do that.

AeroDave,

Sorry to hear your wife had bad luck with that Saturn. I know of a few people who have driven their Saturns a long time without problems. However, Subaru makes some good cars too! I'm Glad she found something she likes. Just don't tell her GM owns 20% of Subie! :patriot
 

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We owned two Saturns while my wife worked there and never had any problems with either one.

Most warranties are pretty empty unless something goes badly wrong early on. These days a reasonably decent car will still go way beyond the warranty period before you may see anythiing major go wrong. Saturn had a cooling problem in the first release of cars - aluminum heads and they used a cooling fluid that was caustic to aluminum - but they recalled every car made up to that point and replaced them. One of many reasons why they had so big a lead in customer satissfaction.

The warranty increase might add a few sales but higher quality would drive it up way more. What adding the warranty period coverage does is drive the cost up substantially, though. In order to properly estimate what the costs of a longer warranty are, the accountants look at historical data on similar cars to see what needs to be allowed as the part of the invoice price that covers warranty costs. It's really a covered warranty because we've paid for it in the original purchase price. Their hope is that there will be enough people who never use any of their warranty to more than cover those who do.
 

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Welcome to the forum Old Jag!

You have some very good point. Most cars go well beyond the warranty period before ever having any major problems. Also, warranty repairs are firgured into the econoimics of selling a vehicle, and essentially are paid for when the vehicle is sold.

When you buy an extended warranty, you are essentially pre-paying for a future repair, and chances are you are paying too much. Most cars will not need the $1500 or so extra that is paid for in the extended warranty, and therefore the company offering it makes money. Sure, there are bound to be cars that do utilize it, but that will be an extremely small percentage.

The best car, of course, is the one that does not need to utilize its warranty. Here is hoping that the majority of people who but Solstices never have to use the warranty!
 

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I believe they will have to eventually. Kia's and Hyundai's are selling like hotcakes on the strength of thier warranty alone,the cars they put out
are low price basic transportation with no wow factor but the warranty provides all the wow factor they need. GM take heed have faith in your quality and show it with a better warranty :nono
 

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IMHO I would suggest GM going to 4 year /50K miles as most leased vehicles are of a 36 month term/ 36K miles...

The resale on a 3 year old off lease car with one year of manufacturers warranty would be higher as buyers would have more confidence in buying the product..

That is the economic reason GM should extend warranties..

It improves residuals on off lease vehicles..effectively lowering the cost of future leasing costs..

As a consumer GMPP works great for me personally..
 

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Actually, I remember reading somewhere a blurb that residuals are actually corelated (correlated? corellated? correllated? too lazy to look up) to, of all things, JD Powers Appeal scores. The higher it scores, the higher the residual (percentage, that is). Appeal scores are not related to warranties, quality, etc. but look at the first 3 months of ownership and take into account the styling and general things that made people like the car/truck they purchased.

Excerpted from JD Power and Asc.:

"Automotive Performance, Execution and Layout (APEAL) Study Summary

The 2003 APEAL Study is based on responses from 102,975 new-vehicle owners. The study, now in its eighth year, is based on eight specific categories of vehicle performance and design that identify what consumers like and dislike about their new vehicles during the first 90 days of ownership. The areas are: engine/transmission; ride, handling and braking; comfort/convenience; seats; cockpit/instrument panel; heating, ventilation and cooling; sound system; and styling/exterior. "

In this case, extended warranties would have little effect on residuals.
 

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Nice find Solsticeman! It makes a lot of sense too. The cars with the best residuals a few years down the road are the ones that are the most desireable overall. Not just for one factor but for many. Since they are more desireable, there is more demand for them and it drives up the price.

GM's low resale values, IMO, are a direct result of their fleet sales. GM overproduces on many of its models, and then must dump them in fleet sales. Part of it is to protect market share. They also overproduce to keep factories running at effiecient output levels to prevent further losses due to operating costs. However, this strategy means they are producing more cars than there is demand for. That will lower their price (value) both as new vehicles and consequently as used vehicles.

The only way GM will improve resale value is by producing volumes of cars equal to or less than public demand, and forgetting about fleet sales. That could simply mean lower volumes, but it can also mean equal or greater volumes of cars people want to buy. Warranty could be a small portion of that, but as Solsticeman pointed out, its mostly in desirability of the car itself. If they had a car that was a gotta-have-it mainstream car, they could sell a ton without rebates and discounts, and it would retain value. They just need a true mainstream hit that looks great, drives great, and holds up.
 
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