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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 5 of 6

#41 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [dtownfb] by gagrice

Jun 01, 2009 (7:59 pm)

Replying to: dtownfb (Jun 01, 2009 7:49 pm)
If you buy a new vehicle from one of the dealers that has lost his franchise. Do you think the company will warranty it? The Chrysler dealer in Florida with 125 new cars claimed he could not sell them as new after June 9th when his franchise is pulled. I would think those cars are near worthless. How the resale can do anything but go in the toilet is beyond me. If Toyota is selling new Tundra PU trucks at 2/3rds MSRP, what would a Dodge PU truck be worth. Maybe half new price.

#42 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [gagrice] by dtownfb

Jun 02, 2009 (9:50 am)

Replying to: gagrice (Jun 01, 2009 7:59 pm)
It shouldn't matter if he can sell them new or not. As long as Chrysler is in business, they have to honor the warranty. The 3yr/36k mile warranty is in affect new or used. Now the Chrysler Lifetime Powertrain Warranty may be a different story. I'm not familiar with details of the warranty but I would hope that Chrysler would honor the Lifetime powertrain warranty since the cars have never been titled.
 
I think all Chrysler's are worthless but i agree that all used Chrysler's will take a huge hit in the resale value on June 9th esp. 1-3 year old cars. similar to what happened with Oldsmobile. You can probably buy a new Chrysler for cheaper than a 1-3 used one.
 
Interesting times. I'm about to get into the maket for a new/used car. should be fun.

#43 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [dtownfb] by volvomax

Jun 02, 2009 (11:19 am)

Replying to: dtownfb (Jun 02, 2009 9:50 am)
If the dealer sells the car AFTER his franchise is pulled, Chrysler DOES NOT have to honor any warranty.

#44 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [volvomax] by dtownfb

Jun 02, 2009 (6:55 pm)

Replying to: volvomax (Jun 02, 2009 11:19 am)

If the dealer sells the car AFTER his franchise is pulled, Chrysler DOES NOT have to honor any warranty.
 
Why wouldn't the basic 3 yr/36k mile warranty not be honored? I understand the Limited Lifetime warranty wouldn't be honored.
 
Is this because the cars would be considered used cars?

#45 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [dtownfb] by corvette

Jun 03, 2009 (6:27 am)

Replying to: dtownfb (Jun 02, 2009 6:55 pm)
I think the car has to be delivered (and the warranty activated) from an authorized dealer. If they don't have a franchise, it's basically a grey market car.

#46 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [corvette] by volvomax

Jun 03, 2009 (8:27 am)

Replying to: corvette (Jun 03, 2009 6:27 am)
I think the car has to be delivered (and the warranty activated) from an authorized dealer. If they don't have a franchise, it's basically a grey market car.
 
Bingo.

#47 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [volvomax] by gagrice

Jun 03, 2009 (8:50 am)

Replying to: volvomax (Jun 03, 2009 8:27 am)
Electronics and Cameras have the same issue. Grey market is many times cheaper, as long as the device keeps working. I look for a lot of grey market vehicles over the next couple years. Buyer beware.

#48 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [gagrice] by mitzij

Jun 03, 2009 (11:28 am)

Replying to: gagrice (Jun 03, 2009 8:50 am)
You may be confusing grey market (new car sold outside of the franchise agreement) and aftermarket (electronics/accessories for a vehicle sold by a company that didn't manufacture the car)
 
 Aftermarket parts can have a warranty through the aftermarket company. Aftermarket parts can void the manufacturer warranty if they cause trouble, but it's an unusual occurrence.
 
 Grey market vehicles usually have the warranty blocked or severely limited. We occasionally see a vehicle built for Canadian sale that was brought south and sold as 'nearly new'. These were meant to be used in Canada-not the US, so the warranty is voided.

#49 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [mitzij] by gagrice

Jun 03, 2009 (1:55 pm)

Replying to: mitzij (Jun 03, 2009 11:28 am)
I was not thinking about after market car stuff. I was referring to cameras & electronics sold online. Some have full MFG warranty others came in grey market and are not warranted.
 
This will be a whole new situation. Most car dealers that just go out of business give back the cars or the bank takes them back and they are sold through other dealers. With several 1000 dealers losing their franchise no one will want the inventory and the customer could get screwed if they do not understand the difference between a legitimate dealer and one that is just selling cars he was stuck with. With Chrysler shut down the supply may dry up before the dealers lose their franchises.

#50 of 59 Re: Chrysler has already filed CH 11, GM looks imminent [gagrice] by fezo

Jun 03, 2009 (3:26 pm)

Replying to: gagrice (Jun 03, 2009 1:55 pm)
And if not you can talk to their special "no warranty for you on your new car" manager, U. B. Scrood.

Messages Page 5 of 6

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