# Extended warranty on new 2014 cruze?



## ehuntsch (Dec 16, 2014)

Just wondering what people recommend for an extended warranty. I just got a 2014 chevy cruze 1lt and I can't decide if I should get an extended warranty. Dealership wanted too much for it so I am looking to see where else people get their extended warranties from.


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## Robby (Mar 1, 2013)

GMPP (General Motors Protection Plan).......trust no others.....I'm serious as a heart attack on this one.

Search around the web, other dealers, etcetera......the plans are quite negotable......take your time....there are multiple time/mileage programs available so you want to try to get a plan that mirrors your lifestyle from a usage standpoint.

There are also different deductables available and I'm going to recommend the '0' deduct.

This program can be serviced (and is accepted with open arms) by ANY General Motors dealer in the U.S. so you are buying piece of mind with minimal brain damage.

Good luck and welcome,
Rob


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## boneheaddoctor (Dec 10, 2014)

Every time I've purchaced one in the past (a grand total of twice)....its more than paid for itself.


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## Tomko (Jun 1, 2013)

Robby said:


> GMPP (General Motors Protection Plan).......trust no others.....I'm serious as a heart attack on this one.
> 
> Search around the web, other dealers, etcetera......the plans are quite negotable......take your time....there are multiple time/mileage programs available so you want to try to get a plan that mirrors your lifestyle from a usage standpoint.
> 
> ...


What he said. 

If you live in Canada, and need a better price, PM me.


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## ChevyGuy (Dec 13, 2014)

Can someone give me a reason why to go for one? Seems to me that it's like a insurance plan - they have to be taking in more money than they spend or it wouldn't work. Sure, I could be the unlucky one that has an expensive repair, but the law of averages would suggest I wouldn't get my money back.

Am I missing something?


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## Cruze2.0TD (Feb 12, 2014)

ChevyGuy said:


> Can someone give me a reason why to go for one? Seems to me that it's like a insurance plan - they have to be taking in more money than they spend or it wouldn't work. Sure, I could be the unlucky one that has an expensive repair, but the law of averages would suggest I wouldn't get my money back.
> 
> Am I missing something?


I agree with you that it is like insurance. The law of averages says that you won't get your money back on it, but I think a big portion of the money that the warranty companies make comes from people who don't think it is negotiable or don't bother trying. So they just lay down the cash and off they go. Usually that original, non-negotiated figure is double what it can be negotiated down to. My opinion on the warranty would be to push for the best possible deal on it, and then once you have negotiated a price, try and figure out if it makes sense.


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## spacedout (Dec 7, 2010)

ChevyGuy said:


> Can someone give me a reason why to go for one? Seems to me that it's like a insurance plan - they have to be taking in more money than they spend or it wouldn't work. Sure, I could be the unlucky one that has an expensive repair, but the law of averages would suggest I wouldn't get my money back.
> 
> Am I missing something?


Your correct, better to just save the money for any repairs you might have. Also if your like me and put on allot of miles the mileage will be up well before 3-4years anyway. I haven't had my cruze 36months yet, but will likely hit 70,000 miles by then.


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## NickD (Dec 10, 2011)

Read the fine print on that GM extended warranty that came in the mail a couple of months ago. For what was covered, already covered under that 5 year warranty plan, so pitched it in the trashcan.

Not only GM but other 3d parties as well. Think in one of them, said it would cost 1,500 bucks to replace a power window motor. 










Heck, if it does go bad, and I can't repair it, could replace it myself for 40 bucks, and quicker than taking it to a dealer.


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## Robby (Mar 1, 2013)

An extended warranty is in effect a insurance polocy.

You are buying health insurance for your car......like any insurance, you are betting you will need it, the carrier is betting you wont.
To those who rack up mileage or intend to keep the car past its basic three year/36k coverage, it provides financial piece of mind.

Yes indeed, the car has 5yr 100k powertrain coverage but there are lots more things that can fail.......even wheel bearings cost more than a couple hundred nowadays and they only fall under the 3/36.

Using cost analysis, extended warranties are a far better value than, say, those silly warranties folks put on their new laptop.
Often, those prices are almost half the price of the item being warrantied.

The factory automotive programs in general, are ten percent or less the price of the vehicle......most can be had for less.

Some folks have stretched their budget to the limit to purchass the car.......a failure of any sort beyond warranty could create a real hardship but by having the coverage they have piece of mind that the vehicle costs X$$$ per month for the duration of the loan......in this case, the service contract creates piece of mind.

Having administered the program in the past, I can tell you that it is not designed to be a cash cow for the dealer or the manufacturer.......the overall loss ratio is approximatly 90%......that means $.90 of every $1.00 is used to pay claims.
The remaining ten percent covers administration costs.

If you are the type that is capable of performing your own repair services and they pose no problem for you, go ahead and roll the dice.
I am the type, and have the tools and facility available to me and I buy the program anyway.
Case in point......Last year the wifes 08 Malibu trans failed......only 48k miles......5.5 years old......can you hear the buzzer in the background?
Powertrain coverage out by time.....hello GMPP...they paid 4600.00 for the trans recon and the TCM that burned down because of it.
My cost, had I done it myself.....approximatly 3300.00 in hard parts.......no thanks.

So, it becomes a question of how lucky do you feel, how long, time and mileage, are you going to keep the car, and how financially flexible are you, as well as, are you capable of performing any repairs?

Good luck!

Rob


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## money_man (Feb 25, 2014)

I'm with Robbie on this one. Even though I own a garage and have 2 hoists and own all the gear to do any work possible, I didn't want anything to cost me money while I'm paying for a new car. 

In my situation I also just bought a house so stealing from one fund to pay the other didn't make a lot of sense to me. My car also being a diesel is completely unfamiliar to me so I'd rather have GM techs fix my problems than just poke around myself and cause possibly more problems. 


Sent from the sexy electrician


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## spacedout (Dec 7, 2010)

What is the years/mileage on an extended warranty? Since I put on 20K+ a year it only covers me for something like an extra 6 months beyond the B2B if I remember correctly. Having owned many used cars with no warranty what so ever though I have no problem driving a 2 year old car beyond the B2B without worrying at all.

If you put away $50 a month since new, you would have the warranty cost + $1800 saved over the first 36 months of ownership. Continue this and you should never go in the hole on repairs, and if you do its probably time for a new ride.


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## money_man (Feb 25, 2014)

Well I'll tell you my situation. Which keep in mind I needed a more reliable vehicle and a house was my top priority. 

I bought my car and with a 5yr term was going to be something like $6k down and still be $584/month. So I bumped it up to 7 years to a reasonable payment of $400/month (thinking of my house approval and whatnot). This lead to me thinking about being out of warranty and having problems so I bought the gmpp for like $2800. This covers me for 7yrs/160k km, which basically gives me bumper to bumper for 7 years instead of 3. By the time I left with my new CTD I'm paying $460/month but I won't have to worry about anything and that means more money for house things. 


Sent from the sexy electrician


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## money_man (Feb 25, 2014)

Being a diesel was also a huge factor as we've had some nightmares with duramax's in the past


Sent from the sexy electrician


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## Dvan5693 (Jul 8, 2014)

money_man said:


> Well I'll tell you my situation. Which keep in mind I needed a more reliable vehicle and a house was my top priority.
> 
> I bought my car and with a 5yr term was going to be something like $6k down and still be $584/month. So I bumped it up to 7 years to a reasonable payment of $400/month (thinking of my house approval and whatnot). This lead to me thinking about being out of warranty and having problems so I bought the gmpp for like $2800. This covers me for 7yrs/160k km, which basically gives me bumper to bumper for 7 years instead of 3. By the time I left with my new CTD I'm paying $460/month but I won't have to worry about anything and that means more money for house things.
> 
> ...


2800 seems like alot


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## money_man (Feb 25, 2014)

I'm canadian don't forget. Our prices are nuts compared to yours. Well, on my 2004.5 duramax we had to replace the fuel lines from the cooler thing in front of the fuel tank all the way to the engine because they're rust prone and a horrible design at that. In parts alone gm wanted $1500. We had them made at a local hydraulic shop for $300 with all new fittings and they're stainless. Head gaskets went, which was $5k and also took out the water pump at the 6 year mark. If we would've had the gmpp extended warranty that would've been all covered. 

Still love the truck though, pulls like ****


Sent from the sexy electrician


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## NickD (Dec 10, 2011)

money_man said:


> Well I'll tell you my situation. Which keep in mind I needed a more reliable vehicle and a house was my top priority.
> 
> I bought my car and with a 5yr term was going to be something like $6k down and still be $584/month. So I bumped it up to 7 years to a reasonable payment of $400/month (thinking of my house approval and whatnot). This lead to me thinking about being out of warranty and having problems so I bought the gmpp for like $2800. This covers me for 7yrs/160k km, which basically gives me bumper to bumper for 7 years instead of 3. By the time I left with my new CTD I'm paying $460/month but I won't have to worry about anything and that means more money for house things.
> 
> ...



Ha, one reason a long time ago decided to build my own home, save at least 70% in labor cost plus all that profit realtors and contractors want. Then over a 25 year mortgage and pay three times the cost of the home with interest payments. Had it paid off within a year.

Helped my son to do this, getting old, but did our own subcontracting, also have to know how to deal with idiot building inspectors. But he got his paid off in five years. Gee, at only 69 years old got carpal tunnel troubles! That was pesty.

When buying a car, make payments to a savings account, puts me in a better position to pay cash. I know people say mortgage payments are tax deductible. But would rather pay around 20% to the government than 100% of that to some darn bank.

A kid? Sure no benefits here, depending upon your income may be only paying a buck less a day in taxes for having that kid. Trying raising a kid on a buck extra per day.


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## money_man (Feb 25, 2014)

I would've loved to build a house but I don't own any land anywhere near the city. I don't even own the stuff outside the city, that belongs to my dad and its 1.5 hours away in the middle of nowhere. 

The house I ended up buying was assessed at $300k and I got it for $266k because the market is down currently. This house is 7 years old and 2400sq.ft with a paved driveway and a garage. 

In comparison semi attached homes are going for $260k for 1500sq.ft with a gravel driveway and no garage. 

If I were to build and could get a single lot of land for a reasonable price ($20k an acre) then I'd be $100k in before I could ever build because of regulations that make a septic system run a minimum of $25k. Then I'd need to drill my well so there's another $10k-$20k. That's before any land clearing or excavation work has been factored in. 




Sent from the sexy electrician


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## JerTM (Dec 12, 2014)

I have seen extended warranties work very favorably for the owner, and I have seen a lot go to waste at my work. I deal with extended warranties daily, and in my opinion a GMPP is the only way to go if you are going to purchase one. Make sure you read everything that is covered no matter who sells it. There are very large portion of them that are total garbage, read the contract.


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## Dvan5693 (Jul 8, 2014)

Also just find a good deal with competitive pricing. I googled GMPP and found a dealer that had "competitive" pricing. Look at the picture below. They then offered me today 12 0% financing on the deal. I honestly don't think it's that bad. What do you guys think? Find better deals, or know someone who can beat it?


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## Cruze2.0TD (Feb 12, 2014)

money_man said:


> I'm canadian don't forget. Our prices are nuts compared to yours. Well, on my 2004.5 duramax we had to replace the fuel lines from the cooler thing in front of the fuel tank all the way to the engine because they're rust prone and a horrible design at that. In parts alone gm wanted $1500. We had them made at a local hydraulic shop for $300 with all new fittings and they're stainless. Head gaskets went, which was $5k and also took out the water pump at the 6 year mark. If we would've had the gmpp extended warranty that would've been all covered.
> 
> Still love the truck though, pulls like ****
> 
> ...


I feel your pain on the ridiculous prices for extended warranties. I wanted mine to be a 7 year 160k km bumper to bumper warranty with a $200 deductible and the original quoted price was $4,000. Being young and dumb (I'm still young, just not quite as dumb lol....I'm only 20), I signed away without knowing what I was doing. The dealer didn't tell me the actual dollar amount for the warranty, just what the bi-weekly payments were going to be. They seemed reasonable to me, so I signed it. I got home, looked at the bill of sale and realized they had charged $4,000 for the extended warranty!!! I was absolutely pissed. After a lot of fighting, the dealer agreed to give me $1,500 cash back, discount the warranty $500 (not sure why they didn't either just discount it $2,000 or give me $2,000 cash back, but whatever works lol) and they also gave me the 3M, floormats, and trunk mat at no extra cost (they wanted about $700 for all of that). So, in the end, mine went from being about $4,000 to like $1,300. Only part that doesn't work out for me, is because the $1500 was given back to me in cash, and wasn't just taken off the sale price of the car, I still have to pay the interest rate of 3.99% over 7 years on the extra $1500, but even that didn't work out that badly because I had a line of credit to pay off that was 5.25%. The process of buying my Cruze from the day I said I wanted to go ahead with it, to when I actually picked it up was over a month....and it wasn't like I was just waiting for the factory to build and deliver it. That is how long the fight went on for, in the end I was happy though and really, that is all that matters ......long story short though, at $4,000 extended warranty definitely not worth it, at $1,300, definitely worth it in my opinion. P.S. Sorry for not having any spaces in between paragraphs, my computer won't let me leave a space in between.


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## Eddy Cruze (Jan 10, 2014)

$2800 or $4000 for a GMPP plan is not good. Considering our dollar is worth 14 cents less at the local Casino exchange rate checked yesterday I still think the selling dealer is charging too much. I bought the top 84 month 7 year GMPP for $1500 and then stuck it to my selling dealer by canceling that purchase and getting the same top GMPP at another Chevy Dealer for $1100. Their cost was $1000. Technically you are not allowed to do this, but technically you are not allowed to drive above the posted speed limit. You have 30 days to cancel the plan, and I would drop by a few other local GM Dealers and see if they are willing to stick it to the Dealer who stuck it to you and save you some bucks. The 12% financing from the Canadian GMPP plan also isn't too impressive as U.S. GM Dealers offer 0% financing on it, and or it can be rolled up into your purchase if it is done at the point of sale.


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## ChevyGuy (Dec 13, 2014)

Robby said:


> An extended warranty is in effect a insurance polocy.
> 
> You are buying health insurance for your car......like any insurance, you are betting you will need it, the carrier is betting you wont.


Indeed. I view insurance as a way to deal with what I can't afford - house fires, major accident or major operation. If you CAN afford something, you're usually better off not insuring - unless there's something that you think tilts the odds in your favor. Of course, there's always exceptions. Either you'll have a huge repair or you won't. There's not much middle ground.

I was mostly wondering if there was something I was missing - like the GMPP gets better rates from the dealer. But then I don't think it would be as welcome. But what it does do is send you back to the dealer instead of a good independent shop. And I suspect it also makes for a longer wait time.


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## Robby (Mar 1, 2013)

ChevyGuy said:


> Indeed. I view insurance as a way to deal with what I can't afford - house fires, major accident or major operation. If you CAN afford something, you're usually better off not insuring - unless there's something that you think tilts the odds in your favor. Of course, there's always exceptions. Either you'll have a huge repair or you won't. There's not much middle ground.
> 
> I was mostly wondering if there was something I was missing - like the GMPP gets better rates from the dealer. But then I don't think it would be as welcome. But what it does do is send you back to the dealer instead of a good independent shop. And I suspect it also makes for a longer wait time.



I've never seen dealers put GMPP repairs on a back burner......payment of claims is instant through the dealership computer system.
Although a dealer is preferred, GMPP is configured to pay independent shops as well and does not make the claim experience at all difficult.......Independent shop claim instructions are found in your contract paperwork.

Rob


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## Colt45 (Jan 4, 2014)

Stay away from anything but the Manufacturer's warranty. The rest of them are filled with pitfalls, deductibles and catches. Personally, based on my experience I would definitely buy an extended warranty if I was keeping the Cruze past the bumper-to-bumper warranty period.


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## ChevyGuy (Dec 13, 2014)

Is there an optimal time to buy a GMPP? I've got 18 months left on B2B - should I look to buy one now or wait? 

And should I wait to the end of the month when someone may need to make quota?


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## Tomko (Jun 1, 2013)

Just checked my paperwork. I paid just over $4K for 84 / 160 with zero deductible.


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## Colt45 (Jan 4, 2014)

Also remember that you don't have to buy it from your local dealers. Many GM dealers sell them online at much cheaper prices. If you are buying it at your dealer, remember that they are VERY negotiable. You can get free upgrades or discounts...all you have to do is ask.


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## Robby (Mar 1, 2013)

ChevyGuy said:


> Is there an optimal time to buy a GMPP? I've got 18 months left on B2B - should I look to buy one now or wait?
> 
> And should I wait to the end of the month when someone may need to make quota?


There is no month end quota for GMPP sales penetration.

The best time to buy is when the car is less than 12 months old showing less than 12000 miles from in service.
After that, the price gets bumped up.....memory says it was/is 100.00.......It cannot be purchassed beyond warranty expiration.

First, determine what time and mileage will fit your needs.
Keep in mind, the plan start date is the 'in service' date so subtract accordingly......for example.....buying a 60k program on a 10k mile car only gets you an additional 50k of coverage.

Once you determine the plan that fits you best, check the price of the program through the GMPP website.....this will get you retail price since GM does not/will not compete with its dealers if they wish to discount.

Stop by your dealer....see the finance manager and tell him you are price shopping the GMPP......This is assuming your dealer even sells the program.
Many dealers sell aftermarket programs because they are far more profitable to them......unfortunatly, they won't tell you the plan SUX.
A aggressive finance manager will often throw open the book and show you retail and cost of each plan.
The same aggressive finance guy will often add 50 to 100 bucks to the cost.....which, IMO is OK.....everyone gets to make a living here, and offer the program for that price.

Ball is in your court at that time.

If you wish, tell me what plan term and deductable you are considering and year/model of the car.....IE Cruze 2LT my 2012.
I can get a cost figure.

This offer is for ChevyGuy only.......I can't get hundreds of quotes without burning my bridge OK?

Rob


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## Colt45 (Jan 4, 2014)

money_man said:


> I'm canadian don't forget. Our prices are nuts compared to yours. Well, on my 2004.5 duramax we had to replace the fuel lines from the cooler thing in front of the fuel tank all the way to the engine because they're rust prone and a horrible design at that. In parts alone gm wanted $1500. We had them made at a local hydraulic shop for $300 with all new fittings and they're stainless. Head gaskets went, which was $5k and also took out the water pump at the 6 year mark. If we would've had the gmpp extended warranty that would've been all covered.
> 
> Still love the truck though, pulls like ****
> 
> ...


Fellow Canadian...I am told that warranties bought online from US factory dealers are valid in Canada. The Service Manager just has to call the US operation when making a claim.


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## phpsteve (Jul 15, 2014)

ehuntsch said:


> Just wondering what people recommend for an extended warranty. I just got a 2014 chevy cruze 1lt and I can't decide if I should get an extended warranty. Dealership wanted too much for it so I am looking to see where else people get their extended warranties from.


I went with the 5yr 100,000 mile warranty across the board.. no 3yr bs.. give me the max.. added like $15 to my payment but will be well wort it with the miles I drive to work.


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## ChevyGuy (Dec 13, 2014)

Robby said:


> The best time to buy is when the car is less than 12 months old showing less than 12000 miles from in service. After that, the price gets bumped up.....memory says it was/is 100.00.......It cannot be purchassed beyond warranty expiration.


Too late for "best time" since it's 18 months old, but still under 12,000.




Robby said:


> First, determine what time and mileage will fit your needs. ... Once you determine the plan that fits you best, check the price of the program through the GMPP website


I'm having problems with that step. It seems to want me to submit contact info for a quote. Either that or I'm looking at the wrong site. I may have to scroll back and see if I'm missing something.




Robby said:


> If you wish, tell me what plan term and deductable you are considering and year/model of the car.....IE Cruze 2LT my 2012.


I will take you up on that, kind sir. As soon as I get my info together.

As long as it doesn't start falling apart, I plan to keep it 10+ years. I don't rack up a lot of mileage, so the time constraints are what I'm looking at. The other is that I don't know what commonly fails on a car only 5-6 year old (or whatever the plan goes for). The youngest car I've ever had before this was 8 years - and then I had to replace both the evaporator and condenser on the A/C - made my money back on the plan that dealer sold me.


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## Robby (Mar 1, 2013)

You likely will want to go for maximum time/average mileage......something along the lines of a 84 month/60 k type plan.

As we speak, GMPP is renewable.......we added three more years to my wifes 08 Malibu last month.....one month prior to her 84 month expiration......the car only has 58k showing but went in service December 07.

That was a bit pricey though.......just under 1800.00 at my cost......she loves the car though.......old saying applies: If Momma is happy, everybody is Happy......I like being happy.....even if it costs$$$

Rob


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## Eddy Cruze (Jan 10, 2014)

I was always under the impression that the price went higher as you came close to the end of your Bumper to Bumper coverage yet found that that wasn't necessary true. I had picked up a J M & A on my Hyundai for a lower price than when the Hyundai was new. Unfortunately I was in a Semi Crash a year ago and lost the car. J M & A which even pays 100% of the shop rate while the GMPP only pays 33% and refunded my money minus a $50 service charge. I will say when I first asked about purchasing the J M & A I was quoted $3000, and later the owners wife sold it to me for $1800. Dealers generally try to rip you for as much as they can, the nature of being a dealer. Do be careful of buying any online GMPP as there is a good chance it might not be official, many scams in the warranty business. Also many of us plan on having the car for 10 years but in the blink of an eye an accident can take away your CRUZE. Overall I highly suggest the GMPP and it can be obtained from any authorized G.M. Dealer. I'm pretty sure they also would return a portion of your contract if you lost your CRUZE, and it also transfers to the next owner, always a great selling point if selling your unit!


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## Robby (Mar 1, 2013)

Eddy and other readers.

The GMPP payment information being reported is incorrect.

GMPP pays regular shop labor rates and pays suggested retail prices on parts for starters.
Here is what causes confusion:

GMPP will only pay the labor published in the warranty time guide as opposed to the suggested time found in aftermarket time guides such as Chilton or Motors.
Aftermarket time guides have always ranged from 30% to as much as 120% above the factory time guide.
The reasoning is, once the car is out of warranty, components requiring replacement are often difficult to service due to corrosion, road debris, and other influences that can slow the tech. down.

An example: Lower control arm on a 2010 Malibu.......factory time is .50 plus .50 for alignment verification and adjustment.
Chilton: .90 for replacement, .50 for alignment verification.
So, the factory (and GMPP) will pay 1.0 hours at the shops published labor rate for the job.

If the same job is a customer pay job, the dealer will charge Chilton time or, in this case, 1.4 hours at published shop labor rate.
If you were a dealer, what method would you prefer????? We both know the answer.

As far as parts, GMPP pays suggested retail price.....that means the actual published retail price as found in the parts book.
When a job is customer pay, most dealers price their parts from a matrix system....a price escalator that uses a very high markup for inexpensive parts, and decreases the escalator as the part price gets higher.......the dealer sets up the escalator values, so each dealer may have a different retail price for the same part.

BTW....the labor pricing system using tenths is mystifying to most.....I will simplify.

The time method uses a clock broken into 100 'units'.....ie, a 100 unit clock as opposed to a 60 minute clock.
Now, to turn time into money, we simply remember there are 100 units in a hour, 100 pennies in a dollar.
This method allows charging to the penny.
$100.00 per hour published is simply $1.00 per UNIT......ez pz.

Anyways, the dealers labor is NOT reduced to 33% unless he is hosing all his 'customer pay' clients an additional 77% over published rate.
I have overheard dealers make this whine about GMPP and have taken the time to help them 'rethink' their position, heh heh.

Rob

Addentum:

Tomko pointed out I had put the word minute in place of the word I meant, ie, UNIT..I changed that.

Anyways, Tomko, you are correct.....the example works out to approximatly $1.67 per minute.


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## Eddy Cruze (Jan 10, 2014)

Robby I do respect you and all your excellent info. Not only were you a 76 Dealer, you knew about the Choo Choo! I got the 33% direct from the GM mechanic who installed my rear trailing arm and I verified it with the Shop Forman as I thought that was absurd the compensation was so low. For that matter I was quite surprised Fidelity/J M & A paid 100% of the shop rate to my Hyundai dealer, still while scrutinizing every step of the repair? Worse yet my Federal Blue Cross FEP was calling the Hospital every day asking when was the soonest I could leave, scum bags!


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## Robby (Mar 1, 2013)

Heath insurance methods have become scary haven't they?

Favorite sentence= 2 words......'Get Out!'

Trust me Eddy, GMPP does pay published labor at posted shop rate......they will not pay the inflated amount of time found in the aftermarket time guides.
This is partially why the can offer such extensive coverage......aftermarket companies will do their best to weasel out of secondary expenses such as fluids/seals/gaskets or anything they can call a resultant failure or normal wear.

Rob


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## Eddy Cruze (Jan 10, 2014)

Yes, I should have said the compensation is about 33% compared to the _*Cash Pay Rate*_. Just another reason why some Service contracts are worth more than most people realize!


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## sanjaysmith (May 7, 2015)

Hello I just recently bought a 2011 chevy cruze LS with 105,000KM on it, dealer sold me the extended warranty for $3170+taxes. It is for 2 years/40,000km. Powertrain warranty is up May 2016. Does anyone think its worth it. I am looking at it and it just seems too expensive. My interest rate was 6.99% and because I got the warranty it went down to now 3.98%. thoughts anyone?


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## ChevyGuy (Dec 13, 2014)

sanjaysmith said:


> Hello I just recently bought a 2011 chevy cruze LS with 105,000KM on it, dealer sold me the extended warranty for $3170+taxes. It is for 2 years/40,000km. Powertrain warranty is up May 2016. Does anyone think its worth it. I am looking at it and it just seems too expensive. My interest rate was 6.99% and because I got the warranty it went down to now 3.98%. thoughts anyone?


1) Who is the warranty with? At that high a mileage, I'm guessing it's not with GM.

2) What is the cancellation policy? If the refund is prorated, I might be tempted to hang on to it for 90-120 days and if the car is solid, cancel it.


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## Robby (Mar 1, 2013)

That seems like big money for a short term plan....even in Canadian currency.....I'll bet it is not a G.M. program.

The interest change is a dealer ploy to make you buy the warranty......bank rates do not change.....

Rob


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## sanjaysmith (May 7, 2015)

It is a gm warranty. I got the mail yesterday. It is the Gm Total Plus Warranty. I have 60 days to cancel it (signed the papers on April 16th). I can also receive a prorated refund anytime after the 60 days or If i make a claim within the 60 days


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## sanjaysmith (May 7, 2015)

It is a gm warranty. I got the mail yesterday. It is the Gm Total Plus Warranty. I have 60 days to cancel it (signed the papers on April 16th). I can also receive a prorated refund anytime after the 60 days or If i make a claim within the 60 days


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## Robby (Mar 1, 2013)

Well then, I believe the dealer sold the program for well over suggested retail and used the interest ploy to make it sound like a good way to go.

Banks sell money (a loan) at a specific interest rate (the amount you pay for the money while you have it).
Depending on the, in this case, finance manager, and your regions usery laws, a additional charge is added to the interest

For example, todays 'Buy Rate' or cost of money from the lender in question is....5%....the dealer can put a 'Add On' the money of, say .5%......so, the dealer sells you the loan for 5.5%.

Some states have usery laws that limit the Add On.......other regions do not......so, you have to learn how to shop for money as well as shopping for a car.

In your case, OP, I suspect the overcharge for the warranty is being computed as a lesser loan.....and on paper, looks like a lower rate.
Kinda crooked.....but also common.

Rather than frett over the potental of maybe you got hammered.....or maybe not since I'm responding to your story and not the actual contract, consider this.

Are you essentally happy with the deal?
Are you comfortable with the peice of mind the additional warranty provides?
Are you comfortable with the payments you have agreed to?

If you answer yes to each question, move on....don't frett....down the road you will buy another car and your knowledge and negotiating skills, for the car, the warranty, and the financing will be much sharper.

The ink is dry on on this one...yes you can cancel the warranty but would that really be in your best interest three years from now?

Good luck,
Rob


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## diesel (Jun 8, 2013)

sanjaysmith said:


> Hello I just recently bought a 2011 chevy cruze LS with 105,000KM on it, dealer sold me the extended warranty for $3170+taxes. It is for 2 years/40,000km. Powertrain warranty is up May 2016. Does anyone think its worth it. I am looking at it and it just seems too expensive. My interest rate was 6.99% and because I got the warranty it went down to now 3.98%. thoughts anyone?


$3170 Canadian?


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## sanjaysmith (May 7, 2015)

diesel said:


> $3170 Canadian?


yes $3170 canadian


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## sanjaysmith (May 7, 2015)

Robby said:


> Well then, I believe the dealer sold the program for well over suggested retail and used the interest ploy to make it sound like a good way to go.
> 
> Banks sell money (a loan) at a specific interest rate (the amount you pay for the money while you have it).
> Depending on the, in this case, finance manager, and your regions usery laws, a additional charge is added to the interest
> ...


1. I am looking at it right now and to me it just doesnt seem like a good deal. When the financing was done on the dealer part he said the bank offered 6% but now 3.98%. $3170+tax bring my loan to now $12560 for a 2011 cruze ls. Chevy cruze doesnt have high resale value as say a honda civic. So I will be upside down for a while. I am paying for almost 1/2 the car (ls model) worth in warranty.

2.It is piece of mind for sure, but I have never had major issues with all the cars I have ever owned and I am pretty savvy when it comes to fixing vehicles. All the recall stuff and issues for the car has been dealt with.

3. I am comfortable with the payments, but then again back to answer 1


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## sanjaysmith (May 7, 2015)

ChevyGuy said:


> 1) Who is the warranty with? At that high a mileage, I'm guessing it's not with GM.
> 
> 2) What is the cancellation policy? If the refund is prorated, I might be tempted to hang on to it for 90-120 days and if the car is solid, cancel it.


It is a gm warranty. I got the mail yesterday. It is the Gm Total Plus Warranty. I have 60 days to cancel it (signed the papers on April 16th). I can also receive a prorated refund anytime after the 60 days or If i make a claim within the 60 days


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