GM boosts Warranty on used vehicles to enhance residual value
General Motors is offering a one-year/12,000-mile bumper-to-bumper warranty on used vehicles, in a bid to draw customers shying away from cars and trucks built in Detroit. The guarantee holds good for all 2003 model year GM Certified Used Vehicles from Buick, Chevrolet, GMC, Saturn and Pontiac sold in the Japanese-made autos record better resale values than autos made in Detroit, a considerable drawback for domestic brands.
The one-year/12,000-mile bumper-to-bumper warranty will take care of vehicle flaws apart from regular wear and tear. GM gave out a five-year, 100,000-mile limited powertrain warranty for its used vehicles in 2007; its current bumper-to-bumper warranty stretches for three months or 3,000 miles.
General Motors sold a record number of 451,000 used cars and trucks in 2007; but sales figures in 2008 for certified used-vehicles were at an all time low, due to a weak economy and shy-high gasoline prices. Most consumers, hit by the credit squeeze, have made drastic lifestyle changes to delay new vehicle purchases.