CARY, N.C. -

Will the free maintenance plan for eligible 2014 Buick, Chevrolet and GMC models have any impact on residual values for those vehicles?

That’s the question ALG’s Eric Lyman delved into after General Motors announced the new program on Thursday.

In short, buyers or lessees of eligible new 2014 models from Chevrolet, Buick or GMC in U.S. will receive maintenance coverage that includes certain scheduled services for two years or 24,0000 miles, whichever occurs first.

Granted, such a program may steer a shopper into a showroom much like a cash incentive might.

However, the residual impact, as Lyman illustrates, can be much different.

“While cash incentives have a direct, negative impact on the future resale value of a vehicle, free maintenance programs can have a positive halo effect on brand value,” said Lyman,  ALG’s vice president of residual values. “This change represents more evidence of the shift in strategy as GM seeks to protect and improve future vehicle values.”

Also chiming in on Thursday’s maintenance plan news from GM was the team at Kelley Blue Book, which looked at how the program may help on the retail side.

“With the new maintenance program, GM now can sway buyers on the fence from a competitor that doesn't offer a comparable program, and could attract additional buyers who are shopping based on price,” said Alec Gutierrez, senior market analyst at KBB. “While this can help to bring customers into the showroom, it still comes down to product.”

Jack Nerad, KBB’s executive editorial director, added: “In the escalating competitive battle among carmakers, maintenance coverage has become an increasingly important theater of operations. As data like KBB.com's 5-Year Cost to Own become even more well-known to consumers, we expect that efforts like those General Motors just announced will become even more prevalent.”
 

Joe Overby can be reached at joverby@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.