GM Going to Provide Warranty on Used Vehicles

October 10th, 2008 admin

General Motors Corporation (GM), the world largest automaker, wants to win over consumers wary of Detroit-built vehicles. GM is going to offer a one-year/12,000-mile bumper-to-bumper warranty on utilized vehicles. This offer is valid to all GM Certified Used Vehicles from Chevrolet, GMC, Buick, and Pontiac sold in the U.S. market going back to the 2003 model year. Moreover, Saturn licensed Pre-Owned Vehicles will be provided the similar warranty. GM informed the program starts 13 September and the corporation hopes it will aid to boost sales and make residual values of its vehicles. Although vehicles made by Japanese auto makers want to have better resale values than those sold vehicles by Detroit companies and it is an important competitive shortcoming for local brands. But Jamie Hresko, GM vice president of quality for North America, said:

We’ve upped our game and made significant strides in quality,” he also added, “This shows GM’s confidence.

In addition to say this warranty will cover all type of vehicle error outside normal wear and tear.

On the other hand, the company said GM certified used-vehicle sales are decline current year from the last year, at what time the auto manufacturer sold a record 451,000 used vehicles. Though used cars and trucks are falling victim to the similar sales crash driving downward sales of new cars and trucks to their lowest level points in above 15 years history. Most of the customers, hit by the fragile economy with record oil prices, make delay to purchase big-ticket for example new vehicles.

In the year of 2007, General Motors Corporation rolled out a five-year, 100,000-mile limited power train warranty for its used cars and trucks. The existing bumper-to-bumper warranty program lasts three months or 3,000 miles. But experts said the warranties may assist sell additional used cars and trucks but it will not improve expected residual values radically.