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Bankruptcy? What happens to my car warranty then?



  • 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.
  • 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.
  • cadillacmikecadillacmike Posts: 543
    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.
  • Mr_ShiftrightMr_Shiftright Sonoma, CaliforniaPosts: 61,438
    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.

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  • dtownfbdtownfb Posts: 2,918
    As long as GM remains in Chap. 11, owners shouldn't see anything different. Chrysler is about to emerge from bankruptcy any day now. How long the new company last is another story.
  • gagricegagrice Pahrump, NevadaPosts: 31,432
    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.
  • dtownfbdtownfb Posts: 2,918
    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.
  • volvomaxvolvomax Posts: 5,274
    If the dealer sells the car AFTER his franchise is pulled, Chrysler DOES NOT have to honor any warranty.
  • dtownfbdtownfb Posts: 2,918

    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?
  • corvettecorvette United StatesPosts: 6,137
    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.
  • 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 Pahrump, NevadaPosts: 31,432
    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: 613
    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 Pahrump, NevadaPosts: 31,432
    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 Manahawkin, NJPosts: 10,350
    And if not you can talk to their special "no warranty for you on your new car" manager, U. B. Scrood.
    2013 Mazda 5 Grand Touring, 2010 Toyota Prius IV. 2007 Toyota Camry XLE, 2004 Toyota Camry LE, 1999 Mazda Miata
  • explorerx4explorerx4 Central CTPosts: 12,680
    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.
    2017 Ford Fusion SE 2017 Ford F-150 Limited
  • dtownfbdtownfb Posts: 2,918
    Interesting! I did not know that. Thanks
  • steverstever Posts: 52,683
    That is interesting. Here's a short blurb about it:

    Fiat Agrees To Honor State's Lemon Law With Chrysler (
  • steverstever Posts: 52,683
    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
  • 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 Posts: 52,683
    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.
  • Instead of just saying you're not interested, like an adult? Come on man, that's just lame.
  • steverstever Posts: 52,683
    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. :)
This discussion has been closed.