Extending warranty -- GMPP

[Bruce Nunnally]

I have 35K miles on my 2005 CTS, and am settling in for another 3 years/45K miles or so. Apparently there is a price break on the GMPP (GM Protection Plan) extended warranty at 12m/12K, and at 36K miles, judging from the GM mailing I got this week. GM offers 3 levels of coverage, "Basic Guard", "Value Guard", and "Major Guard". Major Guard is the closest to the factory bumper to bumper warranty, although it does exclude a few items also.

http://www.gmpponline.com is the factory store for the GM Extended warranty.

Looking online, I see that an additional 48mo/60K miles at $100 deductible for the 05 CTS will cost me $2,510 from GM, $2,305 from discount dealers.

By searching online one can find a couple of GM dealers who offer discounts on the GMPP. There are also of course other warranty companies and plans, but I like the 'factory' extended warranty, and there are dealers who discount the factory GMPP. An additional 36mo/45K/$100 deduct would be $1,970 from GM, $1,754 from others.

Now, my 2005 CTS has been very reliable. It has the Cadillac 48 month / 50K mile warranty, so it will still be under warranty for another 12 months or so, since my mileage at 15K/year will likely hit 50K before we get to 48 months.

The extended warranties are termed to start at the current date/mileage and extend for the purchase period. So the 36m/45K warranty for example would start from my current 29mo/35K miles at warranty signup and extend til 36+29=65mo or 35K+45K=80K miles. The 48m/60K would run til 77mo/95k, etc.

GM now offers interest-free payment plans to help with extended warranty purchases. This is structured as 10% of the extended warranty cost down, then 15 equal payments at 0% interest.

So, I could choose to take my chances, drive the CTS until I am ready to trade/sell it, and self-insure for repair risk.

Another option, for US$1,970, is to get the 36m/45K warranty, which would ensure that the car is under warranty for the life of the car note, and the likely time that I will have the car, since I plan to trade it in 2-3 years.

Finally, for US$2,510 I could get the 48m/60K extended warranty, which would give me even more breathing room with no repair costs, so that if I decide to keep driving the CTS for an additional year after it is paid off, and save for the next car, then I am assured that it will be covered.

An extended warranty can be purchased at any time, as long as the car is still covered by the original warranty. An upgrade to an extended warranty can also be purchased later, if there is at least 3 months / 3K miles left in the existing extended warranty period.

So the choices: Self-insure and take the risk, buy 36m/45K miles for $1,970 at $197 plus $118/month for 15 months, or 48m/60K miles for $2,510 at $251 plus $150/mo for 15 months. I was thinking the 48m/60K and leave margin until I wrote this out, but reading through it the 36m/45K miles, since it matches the 31mo I expect to keep the car from here seems the best fit.

[JIMDTS]

Hi Bruce

If it was me I sure would get the extended warranty Repairs & parts on cars are not cheap I try to get rid of my cars when the warranty runs out Barter with the dealer on the cost of the Gm warranty go with the gm warranty NOT the cheaper off brand ones offered by some dealers This one sounds like your best bet "Finally, for US$2,510 I could get the 48m/60K extended warranty, which would give me even more breathing room with no repair costs, so that if I decide to keep driving the CTS for an additional year after it is paid off, and save for the next car, then I am assured that it will be covered." If you want to self insure & gamble go for it I would rather be safe than sorry Every extended warrany I have ever had has MORE than paid for it self

Good Luck

Jim

[Dasher]

I think you've certainly considered all the angles, Bruce.

Having spent years in the insurance business on the administrative side, I was recently wondering if extended warranties will be cheaper now that the drive train is already covered by GM's warranty.

It would sorta be like insurance after Medicare. The health insurance premium drops precipitously after Medicare kicks in because Medicare is the prime insurer and picks up the bulk of the tab. With the current warranty, the drive train is already covered so the extended warranty would only have to pay for the other things and the cost should be far less.

[Cadillac Jim]

There are two major types of insurance: risk protection such as auto collision and liability insurance, and convenience coverage, such as medical insurance. Risk protection means that you won't be slugged with a big bill that is unlikely. Convenience insurance covers all expenses of a particular type, and thus is also risk protection.

Insurance is a service. As such the cost of insurance is more than the costs that it pays, on the average, and the difference is what pays for the offices, paperwork, and people's salaries. Warranties are largely a convenience insurance. My take: If you don't need the risk protection, you are ahead financially, on the average, by not buying the insurance. If you know something that changes the odds in your case, then you can use the probabilities to make decisions to your advantage. GM is not above writing warranties at standard costs that cover particular models or options packages that have higher-than-average vehicle maintenance or repair costs, but they also keep the consumer costs within reach by having deductibles and excluding wear items like brakes, and sometimes there is a maximum mileage limit.

My inclination is to skip the added warranty on daily driver sedans, particularly if the expected yearly mileage is less than 12,000 miles. If there is a mileage limit and you intend to drive a lot of miles a year, you need to look at that. If there is a high mileage limit and you intend to spin the clock, then it can be a good deal.

[Bruce Nunnally]

Yes, on the 07 and after with the 5yr/100K mile powertrain limited warranty, I would also expect that the extended warranty costs would be much less. Mine is a 2005, when there was not an extended powertrain warranty stock unfortunately. I think the current powertrain warranty is a positive development and a real buying decision point.

[Bruce Nunnally]

My inclination is to skip the added warranty on daily driver sedans, particularly if the expected yearly mileage is less than 12,000 miles. If there is a mileage limit and you intend to drive a lot of miles a year, you need to look at that. If there is a high mileage limit and you intend to spin the clock, then it can be a good deal.

So far I am averaging 15K miles per year. I love the VVT 3.6L engine and the 5speed Auto, but we just don't know that much about them at 75K+ miles. There are certainly some cars beyond that but I have not seen a lot of traffic on issues yet. Hopefully that means they are not having issues.

I would like to avoid having car payments and repair payments overlay, which makes having the warranty for at least 2.5 more yrs attractive. Either the 36m or 48m would do that.

I am a little displeased that the result of extending the warranty is in my case 1.5 years of extended coverage beyond the bumper to bumper warranty until I would be ready to sell/trade

the car anyway. The fact that the car would still be under warranty when I am ready to sell/trade is a feature. Certainly not worth the cost of the warranty, but a feature.

The extended warranty also makes me feel better about keeping the car longer beyond my current plans if we decide to go that way. I am itchy already to get a new CTS, or a lightly-used some other Cadillac, but in 2 years our son will be leaving for college, we'll be funding another car, new bills, new insurance, etc. So having lots of options is attractive.

From a cost viewpoint self-insuring is attractive given the current reliability of the CTS. However, the limiting my out of pocket risk of having to do the transmission, the A/C, or the engine makes an extended warranty attractive also. If in this case the extended warranty were somewhat less expensive it would be a no-brainer, but even at $1.9K for the +36m it is pricey enough to give pause.

[Cadillac Jim]

If you need the protection feature of an extended warranty, then the main decision is selection of one based on the price, cost to benefit, and the scope. Most of the time you can adjust the cost down to affordable limits by having a reasonable deductible, such as $250 or $500. Even if that option isn't spelled out in the paperwork you get, you can likely negotiate it with the agent. After all, you're not asking for concessions, just tailoring it to your needs.

[JIMDTS]

Bruce

You can speculate all you want about extending the warranty, figure the odds etc We are talking about cars

Let me share my last experience with a DTS with 53k on the clock

I drove the car little over 6 months off warranty. During that time period the problems started(after the warranty expired)

Jim

[bowtie123]

Hi All,

From my Corvette days of 40 years, I found the lowest price on GMPP's from the following dealer.

He is reported to sell more GMPP's than any other dealer in the country.

Ken Fichtner Chevrolet

(Located in Montana)

(406) 628-4618 Ext 103

e-mail kenfichtner@fichtnerchevrolet.com

He sell for all GM brands.

[Bruce Nunnally]

Emailed to see what they quote for the 36mo/45K/$100deduct option. I am thinking that best suits my risk tolerance and dealer visit tolerance.

If I NEVER use the warranty then I'm still happy.

[bowtie123]

Emailed to see what they quote for the 36mo/45K/$100deduct option. I am thinking that best suits my risk tolerance and dealer visit tolerance.

If I NEVER use the warranty then I'm still happy.

Sorry,

I had the e-mail address spelled wrong.

It has now been corrected

[jasper60103]

Emailed to see what they quote for the 36mo/45K/$100deduct option. I am thinking that best suits my risk tolerance and dealer visit tolerance.

If I NEVER use the warranty then I'm still happy.

Caddyifo:

I think you made some good points. I was looking into the same plan for my 04 Deville w/30K miles. I got the following pricing from Black Pontiac Cadillac.

36/45K/$100. $1675

36/45K/$200. $1395

You may want to check him out before buying.

thanks,

jasper

Allen J. Black

Black Pontiac Cadillac

3929 Admiral Peary Hwy.

Ebensburg, Pa. 15931

www.gmoutlet.com

allen@gmoutlet.com

[Bruce Nunnally]

Yes, thanks. I was having problems with the email quote server from gmoutlet.com, but got it to work today.

for the 36mo/45K/$100 option they are quoting $1,970.00 Retail / $ 1,495.00 Sale price. They note that one should order before tomorrow as the prices change on Oct 1.

http://gm-auto-mall.com quoted $1,754 for the same warranty.

No reply yet from Ken, but the night is young yet and not everyone lives online.

The $1,495 quote does seem a nice savings over $1,970.

[JIMDTS]

“Times change though. And the quality standard these days is that a vehicle should need no unscheduled visits back to the dealer.

My CTS has been through the dealer bay also, when it vented some differential fluid; (dealer decided the differential was overfilled and fixed). On average the new cars don't need to go back to the dealer for anything. Of course, individual Owner focus can vary as to what is an issue and what is not, but a bulb being out at low mileage is a supplier problem or circuit problem that Cadillac needs to fix.

Now the CTS-V has a maintenance scheduled every 25K miles or so anyway as I recall; it is really designed as a track car for enthusiasts, so perhaps that fits the model. But the other Cadillacs are designed to go 100k miles with only checks on things now and then. That's one of the Cadillac advantages, no need to pay $K for a 30K check and a 60K check etc. “

Bruce

VBG, I’m Just curious Times change but NOT that much

Why do you want to extend the warranty? In a the above previous post you appear to think these cars are going to go 100k trouble free miles with just some checks on things NOW & THEN. SO why bother with a warranty?

I have faith that something is going to bite the dust Every car I ever owned has had problems some bigger than others

Jim

PS I'm Just mess'n with you

[jasper60103]

Bruce:

I sent Ken an email last night as well.

Hoping to hear a quote from him today.

Also, I plan to see if my car dealer will match or

beat the best internet price.

thanks,

jasper

[bowtie123]

I hope everyone got the correct e-mail for Fichtner Chevrolet

kenfichtner@fichtnerchevrolet.com

I must admit I never purchased one from him.

In order to support my local dealer, I would get

Ken's price and take it to my dealer and offer him

$25.00 more. I ended up with 2 seperate plans,

one for my 1999 Corvette, which I just about broke

even on and one for my 1999 Deville, which was a

waste of money. It never went back to the dealer.

[Bruce Nunnally]

Jim-

Yes, that's part of why this is a debate to me.

In the next 36 mo my repair cost will be between $0 and $10K, and I believe much closer to $0. Possible spikes at $10k for an engine, $3k tranny, $1k a/c, etc., but low probability within 80k miles.

However, purchase of an ext warranty puts a ceiling on my risk, at the cost of the hedge (warranty). Also, I hate spending money, so I am trying to gauge if the coverage for 30k miles beyond the base wtty period is worth the cost of the wtty to me.

[jasper60103]

However, purchase of an ext warranty puts a ceiling on my risk, at the cost of the hedge (warranty). Also, I hate spending money, so I am trying to gauge if the coverage for 30k miles beyond the base wtty period is worth the cost of the wtty to me.

Yeah, I hear you. Been struggling with this decision as well.

My Deville has been great, but it has been back to the dealer a couple times.

Once for the air injection pump, another time for the brake rotors.

I still have a couple minor annoyances that I want to have

fixed before the factory warranty expires in a couple months.

1) Wind noise around pillar on passenger side. I seen a TSB about this problem.

2) Noisy fan in dash when cold. Soon as the car warms up, the noise goes away.

This one will be tough to prove, since its not cold outside now.

I'm a little surprised the previous owner didn't take care of above issues.

Btw, I got a copy of the warranty claim history. From the list below, it seems

the car has been fairly trouble free.

Trans serviced (end of lease) 24438 miles

Heater pipe replacement 3341 miles

A/C system analysis 2845 miles

Roadside assistance for flat tire 2226 miles

Roadside assistance for lock out 852 miles

Battery replacement 822 miles

-jasper

[jasper60103]

Update.

Fichtner Chevrolet is willing to match Black Pontiac Cadillac on warranty pricing.

Also, I went back to my dealer and he came down to $1575

for the 36/45K/$100 Major Guard warranty.

That's $100 less than Black's price.

So theres plenty of room to negotiate.

I say toss them a lowball offer and they just may bite.

Good luck.

-jasper

[Bruce Nunnally]

Remember sales tax for local purchases; I like supporting the local economy but its another 8.25% sales tax here vs buying online.

Have not heard back from Fichtner still. Kind of on the fence between buying a 36m/45K/100 now or waiting til the Spring and see

if my plans have changed.

[jasper60103]

No sales tax on warranty, at least in MN.

I plan to wait another month. That will be about

a month before my factory warranty expires.

Be sure to check your warranty price structure. Mine

increases another $485 at 36K miles.

-jasper