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Bankruptcy? What happens to my car warranty then?



  • volvomaxvolvomax Posts: 5,274
    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.

  • gagricegagrice San DiegoPosts: 28,850
    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.
  • mitzijmitzij Posts: 612
    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.
  • gagricegagrice San DiegoPosts: 28,850
    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.
  • fezofezo Posts: 9,328
    And if not you can talk to their special "no warranty for you on your new car" manager, U. B. Scrood.
  • explorerx4explorerx4 Central CTPosts: 9,614
    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.
  • dtownfbdtownfb Posts: 2,915
    Interesting! I did not know that. Thanks
  • steverstever YooperlandPosts: 40,010
    That is interesting. Here's a short blurb about it:

    Fiat Agrees To Honor State's Lemon Law With Chrysler (

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  • steverstever YooperlandPosts: 40,010
    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

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  • cadillacmikecadillacmike Posts: 543
    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??? :mad: :mad: :mad:
  • steverstever YooperlandPosts: 40,010
    Heh, well, I'm pretty sure that Ralph Nader runs Public Citizen. Maybe the armed forces are afraid he'll get their HumVees mothballed. :shades:

    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.

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  • Instead of just saying you're not interested, like an adult? Come on man, that's just lame.
  • steverstever YooperlandPosts: 40,010
    I have a new shtick now when these yahoos ignore the Do Not Call list and bother me. I answer the phone "Sheriff?"

    Note the inflection - I'm asking a question, not saying I am the sheriff. I usually get a pause, followed by a click.

    Hey, it could be the sheriff calling. :)

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This discussion has been closed.