Both General Motors and Chrysler have announced they will not renew franchise contracts with nearly 2,000 dealerships across the country. Millions of vehicle owners are concerned about what this means to them.
Your BBB answers frequently asked questions regarding the dealer closings:
How did Chrysler and GM decide which dealers to close?
GM and Chrysler both indicated the reason for closing specific dealers is a matter of customer satisfaction, sales performance, market oversaturation, and having another brand in the showroom. GM aims to have 3,600 dealers by 2,010 and Chrysler will have 2,411.
When will affected dealers close their doors?
GM has informed 1,100 dealers that their agreement will not be renewed in October of 2010; affected Chrysler dealers learned that they would no longer be doing business as a Chrysler dealer after June 9.
Where can I find out which dealers are closing?
Chrysler made its list of dealer closings public. An easy to navigate list is available on the Wall Street Journal’s Website.
GM has not released an official list of dealers; however, some dealers have learned their fate and are reporting it to local media.
Will my warranty or extended warranty be affected?
A warranty or extended warranty is offered by the automaker and is not affected by a dealer closing. Both Chrysler and GM indicate they are committed to honoring the manufacturer’s warranty despite declaring bankruptcy.
How will I know where to take my car for service?
Both GM and Chrysler warranties will be honored by any certified dealer. Chrysler said that customers who bought their cars from affected dealers will be notified in early June where they can service their autos. GM owners can use the dealer finder to find the closest option.
What if the dealer closes its doors without paying off the loan on my trade-in?
While a dealer is supposed to pay off the loan on a vehicle they accept for a trade-in, they might not if they go out of business. When this happens the original owner could be liable for making payments on both cars or the lender could go after the person who bought the used car from the dealer.