The 2007 Cadillac Escalade is among the GM vehicles with longer powertrain warranties. Coverage now runs for 5 years/100,000 miles, whichever comes first.
Starting with 2007 models, including those already purchased, consumers get longer warranty coverage on powertrain components, which are often the costliest items to repair or replace. Powertrains involve engines and transmissions as well as other components that help a vehicle move, including axle assemblies. GM's new coverage is for 5 years or 100,000 miles, whichever comes first.
GM, which sells vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab and Saturn brands, also lengthened the amount of time that consumers have roadside assistance to 5 years/100,000 miles. This program allows owners to call for emergency help from the road. Such service is free if the breakdown involves warranty repairs or even if drivers have locked themselves out of their cars or run out of fuel.
Limited powertrain coverage formerly only lasted for 3 years/36,000 miles on Chevrolet, GMC, Pontiac and Saturn vehicles and 4 years/50,000 miles on Buicks, Cadillacs, Hummers and Saabs.
But while GM bolstered its powertrain warranty to rival the 10-year/100,000-mile powertrain warranties of Hyundai and Kia, it left alone the limited, basic, bumper-to-bumper warranty that covers most of the non-powertrain parts of a car. Thus, these parts continue to be covered for 3 years/36,000 miles on Chevrolet, GMC, Pontiac and Saturn vehicles and 4 years/50,000 miles on Buicks, Cadillacs, Hummers and Saabs.
Hyundai and Kia, which trademarked the phrase "America's Best Warranty," continue to offer a limited, bumper-to-bumper warranty lasting longer—5 years/60,000 miles.
Better Warranties Follow Better Quality
Just two months before GM's new warranty program was announced, Ford Motor Co. improved the limited powertrain warranty on many of its vehicles.
Coverage went from 3 years/36,000 miles to 5 years/60,000 miles on Ford- and Mercury-branded vehicles. On Lincolns, powertrain coverage now lasts for 6 years/70,000 miles. The changes were effective with 2007 models and some 2006 vehicles.
Like GM, though, Ford did not change its bumper-to-bumper warranty, which is good for 3 years/36,000 miles.
The automakers made no bones about the fact they can bolster the powertrain warranties because of gains in their vehicle quality.
GM Chairman and Chief Operating Officer Rick Wagoner noted that quality on GM vehicles "is up 11 percent" in 2006 and has improved more than 20 percent in recent years, according to GM quality reports.
But company officials wouldn't provide specifics on how much they spend on warranty repairs and how it has changed over the years.
Some Details . . .
Consumers should read the fine print on car warranties carefully.
If you modify your engine with performance parts, then engine repairs aren't likely to be covered by an automaker's powertrain warranty. If a vehicle's problem developed because of an owner's negligence or damage—for example, driving a vehicle without replenishing the engine oil—then repairs likely won't be covered.
Consumers also should be aware of niggling details. For example, Hyundai recently put a limit on the number of free roadside calls in its roadside assistance program, which is advertised as running for 5 years/unlimited mileage.
Hyundai owners now get two free calls a year. Starting with the third call, the vehicle's problems need to be warranty-related or the owner will be charged.
A Hyundai spokesman said the change stemmed from abuses by consumers. Some people, he said, were suspected of purposely running their Hyundais out of gas, so they could call and get free gas delivered to them on the road.
Car shoppers also need to check if warranty coverage is transferable to the second owner of the vehicle.
At GM, any remaining powertrain coverage transfers for free to new owners so the vehicle has coverage for the full 5 years/100,000 miles, regardless of who owns it.
But at Hyundai, which has the longest limited powertrain warranty in the industry—lasting 10 years/100,000 miles—a vehicle's powertrain coverage drops to 5 years/60,000 miles if the vehicle is sold before the original warranty expires.
And Jeep, Dodge and Chrysler vehicles require a $150 transfer fee paid to dealers before a powertrain warranty can transfer to another owner.
DaimlerChrysler, which sells Jeep, Dodge and Chrysler vehicles, last year ended a 7-year/70,000-mile powertrain warranty that had been in place since 2002 and now offers limited powertrain coverage for 3 years/36,000 miles.
Consumers also should consider even slight warranty differences. Someone who doesn't drive a lot and who holds on to a car for a long time might be better served with Hyundai's 10-year/100,000-mile limited powertrain warranty. This would provide coverage for 10 years if the vehicle travels an average of only 10,000 miles a year.
In contrast, the limited powertrain warranty on GM's vehicles expires after five years, even if the vehicle has only 50,000 miles on it.
Also be aware that gasoline-electric hybrid vehicles have different warranty coverage for hybrid components.
Does It Really Matter?
Despite all the car warranty activity, it's debatable how much influence warranty coverage has when consumers are deciding what car to buy.
No survey shows car warranties to be among the top priorities for consumers. In fact, fuel economy has been showing up as a top priority among increasing numbers of car buyers.
And even Hyundai, where officials readily admit they installed their generous warranty program in 1998 to counter consumer concerns about vehicle quality, now say it's less important in the sales process. These days, dealers mostly use the warranty to help "close" a sale rather than start off a sales pitch, according to a Hyundai official.
Meanwhile, sales statistics show that Toyota and Honda, in particular, continue to sell record numbers of cars and trucks in the U.S. despite the fact their warranties lag the competition.
Bumper-to-bumper warranties on Toyota- and Honda-branded vehicles last for a mere 3 years/36,000 miles, and limited powertrain coverage is for 5 years/60,000 miles.
Auto analysts said Toyota and Honda have already established reputations for quality, durable vehicles and therefore haven't needed to add warranty coverage to attract buyers.
Besides, they added, consumers would rather buy a trouble-free vehicle upfront and never have to invoke the warranty than have to take a troublesome vehicle back to a dealership for repairs—even if the repairs don't cost anything because they're under warranty.
Ann Job is a California-based automotive writer.
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