Behind the Buzz
(MONEY Magazine) – THIS MONTH: Detroit's new warranties
• WHAT THEY ARE New warranties from GM (five years or 100,000 miles) and Ford (five years, 60,000 miles). Both car makers had been offering a three-year, 36,000-mile deal. The new ones match or beat those from Honda, Toyota and Volkswagen.
• THE BUZZ Forget cash incentives and no-interest financing. Buy a long-warranty car and never worry again.
• THE TRUTH When warranty periods go up and prices don't, there's little question you win. The new warranties are also transferable, so if you sell your car, the new owner keeps the remaining coverage. (Hello, resale value.) Of course, they cover only powertrain components--engine, transmission, axles and the like--and the average driver (who drives 12,000 miles a year) will wear through GM's touted 100,000-mile, five-year warranty after 60,000 miles. Also, they fall short of the likes of Kia's and Hyundai's 10-year, 100,000-mile whoppers. Still, GM's and Ford's gambit adds value at no cost to customers, which is good news.
• BUZZWORTHY? [YES] Absolutely [NO] Sort of [NO] Mostly [NO] Nope
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