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Bankruptcy? What happens to my car warranty then? - READ ONLY

59 messages,  Last post on Nov 25, 2010 at 12:16 PM

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What if My Carmaker, Dealer or Warranty Company Goes Under? - We're facing the most tumultuous period of modern automotive history. With daily reports on the possible sale or elimination of major car brands, the potential bankruptcy of automakers General Motors and Chrysler, and the closure or consolidation of hundreds of dealerships, consumers are asking a lot of "what ifs." (more) -

Messages Page 1 of 6

#1 of 59 Bankruptcy? What happens to my car warranty then? by steve_ HOST

Mar 09, 2009 (11:49 am)

If the manufacturer of your new car goes bankrupt, what will happen to your factory warranty?
 
Or if you have an extended warranty that's backed by the manufacturer, will that warranty still be honored?
 
Extended warranties from third party companies should still continue to be backed by those companies, but if the dealer network is no longer affiliated with a manufacturer, will the third party extended warranty company reimburse your repairs?
 
Lots of questions - who has answers?

#2 of 59 other CarSpace links by steve_ HOST

Mar 09, 2009 (11:52 am)

There's a general Extended Warranties discussion that may be helpful if you are thinking of buying coverage to protect you in case one of the automakers files bankruptcy.
 
The Jeep Cherokee owners have kicked this potential problem around a bit in the What will happen to my Chrysler warranty? discussion. And there's Chrysler's New Lifetime Drivetrain Warranty that I guess is at risk of going away or being changed.

#3 of 59 Re: other CarSpace links [steve_] by fezo

Mar 09, 2009 (2:29 pm)

Replying to: steve_ (Mar 09, 2009 11:52 am)
This is an interesting question.
 
Not long ago if I were buying a BIg 3 car and getting an extended warranty I'd have been looking for one from the manufacturer rather than a third party. Now it might be exactly the opposite.

#4 of 59 Re: other CarSpace links [fezo] by steve_ HOST

Mar 09, 2009 (2:47 pm)

Replying to: fezo (Mar 09, 2009 2:29 pm)
This is an interesting question.
 
Someone wrote into our Help Desk asking about this, and it sounded like a good topic. One rather hopes it's all hypothetical. Maybe a Daewoo owner can pop in.
 
It is funny how things flip 180 degrees sometimes eh? I've always poo-pooed third party warranties (and I sure wish the FTC would jail those idiots who call me once a week to my number that's on the do not call list trying to sell me one).

#5 of 59 Re: other CarSpace links [steve_] by fezo

Mar 09, 2009 (2:58 pm)

Replying to: steve_ (Mar 09, 2009 2:47 pm)
What's up with that? I never used to have people trying to direvt market warranties to me. Now they are all over the place.
 
Of course I'm not exactly the guy they want. We've got four cars. The only one under 110K is the CPO Ody which has loads of warranty left.

#6 of 59 Re: other CarSpace links [fezo] by steve_ HOST

Mar 09, 2009 (3:14 pm)

Replying to: fezo (Mar 09, 2009 2:58 pm)
Don't worry - drag them through the drill and they'll be happy to write up your ten year old vehicle with 130,000 miles on it for another 7 years or so. When I'm bored, I let them do exactly that on my old Quest. Then I put them on hold while I go upstairs to "find my credit card."

#7 of 59 Re: other CarSpace links [steve_] by fezo

Mar 09, 2009 (3:19 pm)

Replying to: steve_ (Mar 09, 2009 3:14 pm)
Good plan.
 
Ask the next one for a quote on the Daewoo that somehow escaped their notice... That could answer your question about them!
 
There's someone around her that has a Daewoo still. I see it maybe once every two weeks.

#8 of 59 When the manufacturer goes bankrupt by euphonium

Mar 09, 2009 (7:32 pm)

the stockholders lose. So, why should the warranty continue and be valid?

#9 of 59 Re: Bankruptcy? What happens to my car warranty then? [steve_] by nortsr1

Mar 10, 2009 (7:02 am)

Replying to: steve_ (Mar 09, 2009 11:49 am)
There is a full explanation of the above question in this months (April 09) edition of Consumers Reort. (page 5). If they go Chapter 11 , they will still be open for business (sales and service). It is very informative and I suggest you read same (if you get the consumer's reportr mag).

#10 of 59 Re: Bankruptcy? What happens to my car warranty then? [nortsr1] by euphonium

Mar 10, 2009 (9:53 am)

Replying to: nortsr1 (Mar 10, 2009 7:02 am)
CR may have improved, but I gave up on them when they advised "buy the Nash Rambler".

Messages Page 1 of 6

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