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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 6 of 7

#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.

#51 of 59 state of ct... by explorerx4

Jun 03, 2009 (3:43 pm)

got the new Fiat 'partner' of Chrysler to honor the previously filed 'lemon law' cases.
bankruptcy would have invalided these.
good move on Fiat's part.

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

Jun 03, 2009 (6:51 pm)

Replying to: corvette (Jun 03, 2009 6:27 am)
Interesting! I did not know that. Thanks

#53 of 59 Re: state of ct... [explorerx4] by steve_ HOST

Jun 03, 2009 (10:48 pm)

Replying to: explorerx4 (Jun 03, 2009 3:43 pm)
That is interesting. Here's a short blurb about it:
 
Fiat Agrees To Honor State's Lemon Law With Chrysler (courant.com).

#54 of 59 Re: state of ct... [steve_] by steve_ HOST

Jun 04, 2009 (9:45 pm)

Replying to: steve_ (Jun 03, 2009 10:48 pm)
Now Public Citizen is weighing in:
 
"Leading national consumer groups late Tuesday appealed the decision of the federal bankruptcy court overseeing the Chrysler bankruptcy proceeding, asking the court to preserve consumer protection laws and the rights of victims injured by vehicle design flaws and defects to seek compensation from Chrysler.
 
With the stroke of a pen, the bankruptcy court exempted the new Chrysler/Fiat company that will emerge from bankruptcy proceedings from accountability to consumers who have suffered or will suffer injury or loss caused by defects."
 
Ruling that Undermines Lemon Laws in 25 States Should Be Overturned

#55 of 59 Re: state of ct... [steve_] by cadillacmike

Jun 04, 2009 (10:43 pm)

Replying to: steve_ (Jun 04, 2009 9:45 pm)
Steve, the court ruling only kills off existing vehicle liabilities, not new sales, right? Still a screw up on the part of the court. The STUPID military network here is BLOCKING my access to the site because it is an "advocacy group???

#56 of 59 Re: state of ct... [cadillacmike] by steve_ HOST

Jun 04, 2009 (11:00 pm)

Replying to: cadillacmike (Jun 04, 2009 10:43 pm)
Heh, well, I'm pretty sure that Ralph Nader runs Public Citizen. Maybe the armed forces are afraid he'll get their HumVees mothballed.
 
I'm not positive but I think the bankruptcy may kill off only the existing liabilities, and even then, there may be some exceptions. The New GM or New Chrysler may offer different warranty coverages but their new car sales should be covered under lemon or warranty laws.
 
Someone (me?) posted a link not too long ago about lemon law checks bouncing as a result of the bankruptcy filing.

Messages Page 6 of 7

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