In an effort to boost the residual values of used cars, General Motor Corp. plans to add new warranty coverage to its used vehicles. The automaker will provide a fully transferable 12-month/12-mile ‘bumper to bumper’ warranty from the time of purchase with no deductible on all GM Certified Used Vehicles and Saturn Certified Pre-Owned Vehicles sold in the United States, announced the company.

The company believes that the new program will help expand sales of its used cars, while at the same time improving residual values. Reportedly GMAC the finance arm of GM has faced major losses in recent months due to plummeting residual values of its leased vehicles, caused by high oil prices, weak economy and shifting consumer preference towards smaller, more fuel-efficient cars.

Brian McVeigh, General Manager of GM Fleet and Commercial Operations said, “We believe this 12/12 bumper-to-bumper warranty will grow our business as well as help reinforce our residuals.”

The warranty covers defects related to materials or workmanship, except standard wear-and-tear components on the vehicle such as tires and brake pads. All body and sheet metal components are warranted against rust-through corrosion for six years/100,000 miles.

GM has set the age and mileage eligibility standards for GM Certified Used Vehicles and Saturn Certified Pre-Owned Vehicles to include models of six years old or newer, with up to 75,000 miles clocked.

The changes take effect after September 13, 2008.

This entry was posted on Tuesday, August 26th, 2008 at 6:52 am and is filed under General Motors. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.