GM to cut powertrain warranty to 60,000 miles

JALLEN4 wrote:

NJRVer wrote:
I think you can trace the reasoning to the fact that nobody keeps a car for more than 3 years.
Almost nobody "buys" a car, they lease it.
The normal lease is either 2 or 3 years with 10,000 mile per year max allowed.
After that the car is turned in and it becomes a used car. So it is only going to have 20,000-30,000 miles on it. A 100,000 miles warranty would be meaningless.
Do all the manufacturers honor the warranty in a used car sale?

Your statements are somewhat in error. Just over 25% of new car purchases are leases. The standard lease mileage is 15,000 miles per year. There is a significant savings for lower mileage leases and as a result many of the ads we see are for low mileage lease payments. These can be 12,000, 10,000, or even 7,500 in some cases but are not the majority of actual transactions.

The average vehicle age is now over eleven years and would seem to point out that many people do keep vehicles longer than three years. This is especially true in the light truck market where the vehicle is more purpose oriented.

I am sure GM realizes there will be some consequence of cutting the warranty duration but I am also sure they know exactly how much that warranty is costing them. Their determination is that money can be better utilized in other areas if not part of it converted to additional profits. It has little to nothing to do with their "faith" in the product and in reality the cost of warranty and reliability of the product has been improving over the last several years.

I don't lease myself either. I admit error on the blanket statement.
While the 25%+ total lease may be true, when you start breaking down by demographics the numbers start to change.
Different areas of the country, luxury vs economy, Mercedes, BMW, Audi, big time leases.
I will try to find the article on line and post a link from Forbes that predicts leasing to start gobbling up more and more market share in all segments.