Knapp GM Service Contract - too good to be true?

[djsassan]

I've read about them and seen them recommended multiple times now.

They offer a GM-backed service contract? Is it a true extension of the bumper-to-bumper warranty you start with? Or is this the same as any other extended service contract like Zurich or EasyCare? Any good or bad feedback?

 

[WalleyeMikeIII]

No “service contract” is a true extension of the bumper to bumper warranty from the factory. The factory covers ALL parts against defects in material and workmanship (some wear items not covered.)

The GMEPP that Knapp sells has a set of “exclusions.” Suggest you ask for a sample of the contract and read it, it outlines what is and is not covered. Headlights are an item in there that is excluded, for example.

 

[tom3]

I looked into the audio system coverage too. Pretty vague wording on that and problems with it could get real expensive to fix it. But the GMEPP Platinum is probably as good as you'll find.

 

[norcalboon]

Covered my mother's 2018 Buick Encore with their 125K mile extended warranty. No problems, the dealership she uses told her it was better than what they offer. Replaced 2 turbo related parts so far with no issues. Easy to get a quote.

 

[djsassan]

I looked into the audio system coverage too. Pretty vague wording on that and problems with it could get real expensive to fix it. But the GMEPP Platinum is probably as good as you'll find.

Yeah, the thing I didnt like, the sales guy kept insisting it is very comparable to a factory bumper-to-bumper warranty. It isn't.

 

[Capt Ed]

https://www.knappvehicleservicecontracts.com/brochure/chevrolet-protection-plan-sample-contract-10-2022.pdf

 

[zbad55]

I just recently had a quote from them and they are the best for cost hands down. The person I spoke with was very honest though and told me to wait and buy later since I still have 14 months left on the original factory warranty. I will hit the time before even getting close to the 36,000 miles. He indicated the best time to buy would be within a month or so of the factory warranty expiring and if the cost went up it would be very little. The thing is when you purchase this it starts the clock the day the contract is signed so you will lose out on some time and miles depending on your situation,

 

[Tahoe14]

Just don’t buy from your Dealer at inflated pricing unless he is willing to match or beat the price.

 

[BacDoc]

A strategy to consider if your vehicle is still under warranty and you are going to buy the extension - don’t buy it now but wait like the previous poster suggested.

Put the cost of the platinum plan in an equity like a quality stock, dividend paying stock (ET is oil/gas stock that pays 8% dividend), or S&P index fund and just wait. When the factory warranty is ready to expire liquidate the investment and buy the policy. Statistically you will come out positive and most times it will be a couple hundred bucks on a $4k investment if it goes more than 8-24 months.

Of course market could crash but
There would have to be a serious market crash to be down a couple hundred bucks on that $4k investment.

 

[WalleyeMikeIII]

A strategy to consider if your vehicle is still under warranty and you are going to buy the extension - don’t buy it now but wait like the previous poster suggested.

Put the cost of the platinum plan in an equity like a quality stock, dividend paying stock (ET is oil/gas stock that pays 8% dividend), or S&P index fund and just wait. When the factory warranty is ready to expire liquidate the investment and buy the policy. Statistically you will come out positive and most times it will be a couple hundred bucks on a $4k investment if it goes more than 8-24 months.

Of course market could crash but
There would have to be a serious market crash to be down a couple hundred bucks on that $4k investment.

Or, just invest the cash as you suggest and skip the service contract, and pay your repairs out of that $4k investment...my guess is at the end of ownership, if you do all the regular maintenance, you'll still have principal remaining, as well as the some of the gains.
(The above must be true on the whole, or nobody would sell a vehicle service contract...they do it because it is a financial product, and they laugh all the way to the bank. Statistically, they take in and earn more on the money they collect than they pay out, and do this even after employing administrative staff, CEO's, buying office space, etc)