With thousands of Chrysler and General Motors Corp. dealerships closing, customers could be confronted with problems over warranty coverage, trade-ins or other matters.
Both automakers pledge to make the contraction as painless as possible, but that doesn't mean there won't be problems.
"When all of these relationships are disrupted, you can't help but have some elements of chaos, and some practical problems occur," said Aaron H. Jacoby, a Los Angeles lawyer who represents car dealers.
Here are some issues GM and Chrysler customers may face:
Manufacturer warranties: These are the warranties that are included in the price of a vehicle and cover specified repairs for a specific period of time -- three years or 36,000 miles, for instance. They're backed by the manufacturer, not the dealer, and are good at any of the manufacturer-licensed dealers.
GM and Chrysler have both pledged to stand behind their warranties.
But consumers still could face a long drive to the nearest authorized dealer. And customers who have a long-standing relationship with a particular customer service manager may find themselves at the mercy of one who is less attuned to their interests, notes Philip Reed, senior consumer advice editor at auto website Edmunds.com.
Warranty complaints should be directed to the manufacturer or the state New Motor Vehicle Board.
Extended service agreements: These go by many names, often vehicle service contracts or extended warranties, but the bottom line is generally the same: For an additional charge, the contract pays if certain things go wrong with the vehicle for a set period of time -- usually after the manufacturer's warranty runs out.
These contracts typically are backed by a third party -- known as a vehicle service contract provider -- or by the manufacturer. If backed by Chrysler, the automaker said, its other dealers will honor the contract. If backed by a contract provider, Chrysler said, the vehicle owner should check the contract for information on where to go for repairs.
California law requires that such contracts include an insurance policy. If problems arise over the contract, car owners should contact the insurer. Written complaints also can be sent to the state Department of Insurance.
Unpaid liens on trade-ins: When a car buyer trades in a vehicle with an outstanding loan balance, the dealer is supposed to pay off the loan as part of the transaction. But as dealerships have closed during the recent collapse in auto sales, many of them didn't pay off the loans.
