View Full Version : Meltdown 101: What if my car dealer shuts down?

05-15-2009, 11:57 AM
So your local Chrysler dealer is slated to close, and a nearby General Motors dealer could get the ax too. What happens if you need service on your car?

It's a natural question in the changing automotive landscape, as those two U.S. automakers attempt to restructure in and out of bankruptcy court.

In bankruptcy court filings, Chrysler said Thursday it would shutter 789 of its dealerships about 25 percent of them across the country. GM dealers are awaiting word on which 1,100 of them will not see their contracts renewed when they expire at the end of September 2010.
If you live in a major metropolitan area, you could simply drive to another dealership to get your car serviced, even if it is a few extra miles away. However you might have some difficulties if you live in a rural town, or in an area where there are no other dealerships.

Here are some questions and answers on how the Chrysler dealership closings may affect car owners and buyers.

Q: Is my Chrysler warranty still in effect?

A: Yes. Your vehicle is still covered under whatever bumper-to-bumper and powertrain warranty you received when the car was purchased.
Chrysler Vice President Steven Landry said the company will be notifying the 3.5 million customers who bought their vehicles from the affected dealerships where they'll need to go now to service their vehicles. They hope to do this by early June.

Q: Will another dealer honor my warranty?

A: Your warranty will be honored by another certified Chrysler dealer. It won't be honored by another automaker's dealership. And Chrysler said it will not pay its closing dealerships for repair work done under warranty after June 9.

Q: Regardless of my warranty status, can I go to another automaker's dealer to get my car serviced or repaired?

A: That depends and if you can, you'll have to pay for it.


1 dol fan
05-15-2009, 06:52 PM
I knew I shouldn't have payed the extra money for the extended warranty... now its almost worthless to me. LOL