DETROIT—To boost used-vehicle sales, General Motors Corp. is offering expanded service contracts on used cars and light trucks. The coverage, which began Oct. 1, will be available through GM dealers and their affiliates from General Motors Acceptance Corp.
Called Major Guard, the coverage is ``nearly as comprehensive as a factory warranty,'' said Louis Carrio Jr., director of mechanical products for GMAC.
The huge number of off-lease cars returning to dealers is one reason that GMAC expanded its service contracts, he said.
``It's a huge and profitable segment for dealers,'' he said. ``We want to support dealers and their sales as much as we can.''
GMAC's previous top service contract, called Custom, covered only powertrain and other major components. Major Guard covers everything except glass, lenses, sealed beams, light bulbs, tires, and maintenance service and parts.
Major Guard, available on vehicles up to seven model years old, will expire after 100,000 miles in most cases.
Major Guard also offers roadside assistance and a rental car for customers when their cars are being repaired, if more than two hours of labor are required.
The cost of Major Guard is only minimally more than the old Custom contract, Mr. Carrio said.
For example, a two-year Major Guard contract for a Chevrolet Lumina is $555—$10 more than the old Custom contract. Major Guard has about one-third more coverage than the old Custom contract, according to Mr. Carrio.
The Custom coverage, revised Oct. 1, is available on vehicles up to 10 years old vs. three years before the revision.
Along with the new coverage, GMAC tried to streamline paperwork and procedures for dealers and customers, he said.