GM Truck Warranty

[Rara Avis]

Warranty

Basic:
3 Years/36,000 Miles

Drivetrain:
5 Years/100,000 Miles

Corrosion:
6 Years/100,000 Miles

Roadside Assistance:
5 Years/100,000 Miles

Now the question is...IF GM declares bankruptcy...could your warranty become worthless??

Chapter 11 allows that the court can grant complete or partial relief from most of the company's debts and its contracts, so that the company can make a fresh start. Sometimes, if the business's debts exceed its assets, then at the completion of bankruptcy the company's owners all end up without anything; all their rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company.

Just something to ponder, if you happen to be thinking of purchasing a new vehicle...

 

[SnowRidge]

Warranty

Basic:
3 Years/36,000 Miles

Drivetrain:
5 Years/100,000 Miles

Corrosion:
6 Years/100,000 Miles

Roadside Assistance:
5 Years/100,000 Miles

Now the question is...IF GM declares bankruptcy...could your warranty become worthless??

Chapter 11 allows that the court can grant complete or partial relief from most of the company's debts and its contracts, so that the company can make a fresh start. Sometimes, if the business's debts exceed its assets, then at the completion of bankruptcy the company's owners all end up without anything; all their rights and interests are ended and the company's creditors are left with ownership of the newly reorganized company.

Just something to ponder, if you happen to be thinking of purchasing a new vehicle...

That is precisely why GM is trying to avoid bankruptcy at all costs. If they go into receivership and void those warranties, they will be able to sell precious few new vehicles.

 

[Scooby074]

While chapter 11 may (im no lawyer so i have no idea) allow them to get out of their obligations, I think that invalidating the warranties would be suicide. It would undo 100 years of good reputation.

Customers could understand reduction in available models, closing and relocation of plants etc. but i dont think the warranty thing would fly.

 

[Double Orange]

If GM / Ford / Chrysler do go under and void warranties, customers oweing money on their vehicles will be looking for DEEP, DEEP, DISCOUNTS!
I have a 5 month old SUV and if they void my warranty they better expect a 50% loan discount.
Frank

 

[SnowRidge]

If GM / Ford / Chrysler do go under and void warranties, customers oweing money on their vehicles will be looking for DEEP, DEEP, DISCOUNTS!
I have a 5 month old SUV and if they void my warranty they better expect a 50% loan discount.
Frank

Who owns your loan? I'll bet it isn't the auto company. Even if it has the automaker's name associated with it, it is likely to be a separate legal entity.

In other words, good luck getting a discount on your existing loan under any circumstances.

 

[Double Orange]

Who owns your loan? I'll bet it isn't the auto company. Even if it has the automaker's name associated with it, it is likely to be a separate legal entity.

In other words, good luck getting a discount on your existing loan under any circumstances.

Chrysler owns it. It a zero % X 60 so if Chrysler sold the loan they would have to sell it at discount.
Part of a new vehicle purchase price reflects the warranty. I also purchased from Chrysler corp the extended warranty. Issued by Chrysler not a 3rd party.
The discount or reduction wouldn't be LUCK. It would be required by the courts under breach of contract. But I'm sure whom ever wishes to collect any money will be seeking a quick negotiated fair settlement.
A Dollar in Hand is Better than Two in the Courts!

I'm not a person that stiffs a creditor.
I'm also not a person that lets anyone stiff me.

R/S
Frank

 

[Builder]

Paul,

I hope it nevers comes to bankruptcy for any of the "big 3", but if it does, you can expect another bailout from the Feds. If Wall Street got one, the big 3 will get one, too. If that happens, warranties would stay intact, too

I would think it would be a heck of a lot smaller bailout than Wall Street's, too.

Sometimes I can't believe this is on the verge of happening. We own 2 newer GM trucks and they're both excellent build quality and were a great value for the money spent compared to the competition.

 

[Double Orange]

Paul,

I hope it nevers comes to bankruptcy for any of the "big 3", but if it does, you can expect another bailout from the Feds. If Wall Street got one, the big 3 will get one, too. If that happens, warranties would stay intact, too

I would think it would be a heck of a lot smaller bailout than Wall Street's, too.

Sometimes I can't believe this is on the verge of happening. We own 2 newer GM trucks and they're both excellent build quality and were a great value for the money spent compared to the competition.

Builder You are right on.
The Dem/Big 3 sent a letter Saturday for a bail out of the auto/big 3.
Dem leaders want Bush to help auto industry - Economy in Turmoil

 

[Diamondpilot]

The first new truck I bought had the motor blow up at 25,000 miles and the transfer case go out about 8,000 miles later. Both times it took a lawyer, 3 months, and me without a truck the whole time to get it fixed. They blamed me for the problems which seemed obsured to me that I would spend $30,000 on anything and tear the **** out of it.

Anyway, a warranty is only as good as the company standing behind it. They can promise you anything but actually getting them to come through is another thing.

Chris

 

[Dargo]

One interesting fact is that, for the first time in many years, customer satisfaction with 250 and 350 trucks has gone down for Ford, Chrysler and GM. Most of this dissatisfaction is due to the mid 2007 and newer diesel engines. I don't have enough data yet, but Chrysler and GM diesel engines have the biggest drops in satisfaction. Was that because they had higher initial satisfaction? I don't know. All I've heard is that the last model year Ford 250/350 satisfaction has dropped, Chrysler/Dodge 250/350 satisfaction has dropped and GM's 250/350 satisfaction has dropped, with GM's drop being the worst.

Typically diesel engines have the longest factory warranties. Imagine if they went away. What would you be willing to pay for a brand new diesel pickup with no warranty? That would be a company killer and the execs know that fact. The actual warranty cost is absorbed by the factory. Any service contract cost, even if it's through the manufacturer, is through a separate corporation. With this fact, it's possible (remote) in the case of a bankruptcy that your service contract may be valid but your warranty void. In legal terms, a "warranty" came with the vehicle and was part of the selling price and could not be negotiated off. A service contract is anything that covers your vehicle that does not fit that definition.