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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 is this discussion about? Pontiac, Chrysler, Saturn, Saab, GMC, HUMMER, Jeep, Volvo, Land Rover, Car Warranties, Automotive News, Legislation

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 4 of 6

#31 of 59 Current GM warranties ???? by allicat1214

Apr 01, 2009 (4:34 am)

Hello,
 
I read the news articles about the federal govt. honoring GM and Chrysler warranties.
 
"The program will cover consumers who buy a new GM or Chrysler vehicle during the restructuring period, according to a U.S. Treasury Department statement."
 
What if you already own a GM car with an extended warranty and they declare bankrupcy??
 
My son is going to college in the fall. We bought him a 2007 Malibu Maxx with all the extra safety features curtain & side airbags, etc. We also bought the extended warranty to cover him while he was away from home in college.
 
But what happens if GM goes bankrupt??? The current proposal by Obama's administration only covers cars purchased during an upcoming transition period.
 
We're still making payments on the car, including the cost of the warranty. I feel sick.
 
Thanks for any info anyone can share.
 
A concerned mom

#32 of 59 Re: Current GM warranties ???? [allicat1214] by corvette

Apr 01, 2009 (11:13 am)

Replying to: allicat1214 (Apr 01, 2009 4:34 am)
There is currently no definitive answer for what may happen with the 3/36 and 5/100 factory warranty.
 
I believe the GM factory extended warranty is underwritten by GMAC, which is a separate entity than GM. GMAC has been described as "cash-strapped," but isn't in such dire straits as GM itself.
 
If it makes you feel better, you can cancel the GMAC warranty and get a prorated refund. If you financed the warranty, I think the payoff goes to the lender, but this will reduce the principal balance of your loan.

#33 of 59 Re: Current GM warranties ???? [corvette] by stoneybroke

Apr 03, 2009 (5:17 pm)

Replying to: corvette (Apr 01, 2009 11:13 am)
I think I'd worry a lot more about resale value if these guys go belly up. Priced any oldsmobiles lately? I really wanted to pull the trigger on a CST AWD, but.........

#34 of 59 is warranty setup?? by feds? by wp746911

Apr 03, 2009 (6:07 pm)

So IS the federal govt covering the warranty, or are they just saying they WILL/MIGHT? Is the warranty protection in place already or is it something pending blah blah legislation? I'm looking to buy a town and country but need some warranty assurance.

#35 of 59 Re: is warranty setup?? by feds? [wp746911] by fezo

Apr 04, 2009 (8:48 am)

Replying to: wp746911 (Apr 03, 2009 6:07 pm)
I wouldn't count on that assurance. The plan is to offload the warranties on a third party company and details are not anything like solid. If you are thinking they'll just back the lifetime warranty that Chrysler advertises I would not count on it.

#36 of 59 uncle sam will handle it by wreckerman9

Apr 08, 2009 (12:41 am)

thats what the news reported,maybe i can get my congressman to replace my fuel pump.or diagnose my check engine light,ehh? i wouldn't worry myself about it,life's 2 short,ya know...and there's always gonna be another problem to take your mind off of this one. drive careful crew.

#37 of 59 Screwed by whoosierdaddy

Apr 29, 2009 (9:34 pm)

Henderson confirmed the last Saturn vehicle will be built this year unless a buyer for the brand emerges with a good offer. GM will phase out Saturn by the end of this year.

#38 of 59 Chrysler has already filed CH 11, GM looks imminent by cadillacmike

May 30, 2009 (9:04 am)

Gee, not too many relevant posts here.
 
I'm concerned about my wife's car which still has a supposed "factory warranty" through next summer (if she doesn't hit the mileage limit first). It's a CTS, which has been pretty trouble free. But as for buying a new car - not right now, no way, I like American cars but not Fords or Chryslers (Cadillacs for me thank you), and there's no way I'm getting sucked into this malestrom. I think I'll find a nice 1995-96 Fleetwood to replace the one i crashed before getting sent overseas. They'll be relatively inexpensive, can last forever and I LIKE them.

#39 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [cadillacmike] by Mr_Shiftright HOST

Jun 01, 2009 (4:49 pm)

Replying to: cadillacmike (May 30, 2009 9:04 am)
Unless I'm missing something obvious that goes against all previous history--when a car company goes Ch 7, it liquidates, and all owners are SOL when it comes to warranty. That's it.
 
Not to scare anybody, but if my history is correct, no American car company has survived bankruptcy since Studebaker in 1934--which hung on another 32 years, probably thanks to WW II.

Messages Page 4 of 6

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