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General Motors dealers on Monday began offering extended full-coverage new-car warranties that the automaker said are the first of their kind. Rather than extending coverage for certain components like other factory-backed warranties, GM's new, extra-cost warranty is a complete extension of the bumper-to-bumper coverage its cars include when they are new. The extended warranties stretch the 3-year, 36,000-mile coverage in Chevrolet and GMC models to five years or 60,000 miles, while the 4-year, 50,000-mile warranty included with Buick and Cadillac models can be extended to 6-year, 70,000-mile coverage.

https://www.thecarconnection.com/ne...y-backed-extended-bumper-to-bumper-warranties
 

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"As the profit margin on new vehicles has shrunk, warranties have become a major source of revenue for car dealers."

Don
 

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"As the profit margin on new vehicles has shrunk, warranties have become a major source of revenue for car dealers."

Don
And car dealers are not thrilled with this new arrangement, though the hope is that with extended factory warranties, customers with older cars will keep coming to GM dealerships for service and repairs, rather than to independent shops.

I'm curious whether/how this new concept will impact the lease market. Will GM begin offering longer lease arrangements? Does this begin to move cars into the commodity realm? How does this play into the car sharing market? etc.
 
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