After news broke that powertrain warranties on 2016 model-year Chevrolet and GMC vehicles were being reduced from 100,000 miles to 60,000 miles, Kelley Blue Book’s Eric Ibara weighed in on how this may impact resale values for these vehicles.

Rest assured: there probably won’t be any measurable fallout. In fact, Ibara said, the certified pre-owned option will offer consumers a similar confidence otherwise found in a longer warranty.

Plus, he said, investing in areas like vehicle performance, fuel economy or amenities may prove more fruitful on the residual front than the warranty.

“GM decided that the 100,000-mile warranty did little for sales and has therefore made a business decision that their money should be invested elsewhere, most likely in the direction of product development,” said Ibara, KBB’s director of residual values.

“Resale value for the 2016 model-year vehicles will likely be unaffected by this decision as consumers will have the option, in many cases, to choose a certified used vehicle, which will deliver the same peace-of-mind,” he continued. “Delivering a vehicle with more performance or fuel economy or compelling features will likely go further in helping GM raise residual values for their vehicles.”

Speaking of certified, GM is certainly on a hot streak to start 2015, along with its Big 3 peers. 

According to Autodata Corp., certified sales for the Buick, Chevrolet, GMC, Pontiac and Saturn brands came in at 39,086 units in February, a 21.9-percent year-over-year increase. Through two months, these brands have moved 74,448 CPO vehicles (up 22.9 percent).

Cadillac sold 1,885 CPO vehicles in February, which beats the year-ago sum by 21.7 percent. It has sold 3,758 CPO units in two months (up 21.8 percent).

News of the powertrain reduction was part of a story initially reported by Automotive News.

Used Truck Value Movements

Elsewhere, Ibara also provided some perspective on the overall truck segment, discussing residual trending for new 2015 models.

It's a bright future for the segment, he said. 

“Trucks have been trending upward for some time now, in both sales volume and in resale value,” Ibara said. “Although residual values on trucks can vary quite significantly depending on the configuration of the truck (crew cabs and extended cabs hold their value better than regular cabs), the future for used-truck values look good given the improving economy and the prospect of moderate gas prices. 

“Consumers’ acceptance of aluminum trucks will likely play out over the coming months and Kelley Blue Book will be monitoring this trend,” he added. “The moderate fuel prices now projected raises the stakes for higher priced vehicles as the break-even period is stretched out further.”