We know the feeling.
You’re sitting at the dealership and the hours are ticking by. Your test drive went great, but now you have to talk business. As the dealer tacks on bogus fees for documentation, vehicle preparation, and on and on, you can only watch as the price rises.
As he’s wrapping up the final price, he turns to ask you one more question. “Are you interested in an extended warranty?”
Should you get the warranty right there or from somewhere else?
To help make that decision, you should know the difference between an extended warranty from the manufacturer and one from a third-party dealer.
Before you make a decision, join Smith Chevy Warranty as we explain the differences to help you make the right choice. In the auto industry since 1923, Smith Chevy Warranty has years of experience providing GM owners peace of mind.
Read on to see the differences!
What’s a Manufacturer-Backed Extended Warranty?
Normally two warranties are offered by the dealer when a vehicle is first purchased.
The first is a bumper to bumper warranty. This type of warranty normally covers your vehicle’s powertrain, which means expensive components, like your engine, are protected.
So let’s say you drive off the dealer’s lot, and three weeks later you need your transmission replaced…that should be covered!
The other type of warranty that the dealership will normally offer is called an extended warranty. This basically means that your factory warranty will be extended. The factory warranty typically covers your vehicle’s powertrain, but other components may be added like roadside assistance.
What’s a Third-Party Extended Warranty?
When it comes to a third-party warranty (also called an aftermarket warranty) there lie many benefits and downsides.
Oftentimes, an aftermarket warranty will be less expensive than what the dealer will offer. In many cases, used vehicle dealerships will not even offer extended warranties, so a third-party option may be your only choice!
Though these warranties can be cheaper, many downsides remain, including:
- Large deductibles for repairs
- Non-manufacturer parts placed on your vehicle
- Lack of choice regarding repair shops and mechanics
- You could pay for the repair upfront and then be reimbursed later
- Strict restrictions and limitations when using the warranty
When getting an extended warranty, the safest bet is usually to go through the dealership, but other options exist!
Have you ever heard of a third-party extended warranty provider whose plans are backed by the manufacturer?
Welcome to Smith Chevy Warranty!
As a third party warranty provider ourselves, we’ve heard many of the hesitations above, but we’re here to tell you that all warranty plans provided by Smith Chevy Warranty are 100% backed by GM!
What does this mean?
If your Cadillac or Chevy SUV were to break down, you would have the option to have repairs done at any licensed GM dealership throughout the US and Canada. These repairs are complete with manufacturer parts!
And guess what? Say you want to sell your vehicle. Your GMPP can be transferred to the next owner (hello increased value)!