Closing dealerships may have some in a fix

Closing dealerships may have some in a fix
http://www.msnbc.msn.com/id/31213423/

Car owners may have to find a new shop to do warranty work
The Associated Press
updated 7:17 p.m. ET, Wed., June 10, 2009

DETROIT - There are 789 fewer Chrysler dealers this week. And by the end
of next year, there will be 1,100 fewer General Motors dealers.

As the automakers terminate contracts with dealers across the nation as
part of their bankruptcy reorganization, many owners of Chrysler and GM
vehicles will have to find new sources for oil changes, tuneups and
major repairs.

What's a loyal owner to do? The situation is more acute when it comes to
Chrysler dealerships cut loose by the company Tuesday. GM dealers will
see their relationships with the company end by Dec. 31, 2010.

Chrysler dealers no longer affiliated with the company cannot honor
incentives or make repairs needed to Chrysler, Dodge or Jeep vehicles
under the manufacturer's warranty.

In many cases, owners can simply roll their broken jalopy to another one
of the 2,392 remaining Chrysler, Jeep or Dodge dealerships. Chrysler
spokeswoman Kathy Graham said that even in rural areas, the average
distance between Chrysler dealers is 10.7 miles, but there are probably
many areas where the distance is much greater.

Another certified Chrysler dealership will be able to handle any repairs
under the warranty. It doesn't matter if you drive a Jeep and take the
vehicle to a Dodge dealer.

Life gets more complicated if there isn't another certified dealer
nearby. According to Ron Pyle, president of the Automotive Service
Association, representing 10,000 independent repair facilities,
consumers are already coming to his members asking if their shops will
honor Chrysler warranties.

The answer is no, because a mechanic has no way of being reimbursed for
the parts and labor needed to make the repair. Nor do Chrysler dealers
who have been rejected by the company. Just because the dealership
remains open selling other cars doesn't mean it will honor a Chrysler
warranty, not even a lifetime warranty covering the transmission.

"The customer has to pay for the repair, but they may have recourse if
they file a claim against Chrysler to get their money back," Pyle said.
"But we haven't seen that spelled out in writing, I don't believe that's
been handled at this point in time."

Chrysler's Graham said there have been a few exceptions in the past
where the company covered a repair at a non-certified shop. She said the
company is mailing letters to all Chrysler customers this week;
customers whose local dealers have shut down will receive the names and
addresses of three to five other dealers where they can take their vehicles.

The company plans additional letters detailing more options over the
next 70 days, Graham said.

Even if Chrysler allows customers to use non-Chrysler mechanics, they'll
need to check whether their warranties cover items such as free towing
and loaner cars to use while their cars are in the shop, Pyle said.
Sometimes, those perks are given by a dealership, not an automaker.

The situation may be trickier if you have a Chrysler vehicle covered
under an extended warranty that was sold by a dealership that's
shuttered or no longer affiliated with Chrysler.

Owners should first check to see if the extended warranties are backed
by Chrysler or third-party insurers, said Tim Meenan, executive director
of the Service Contract Industry Council, a trade organization that
provides extended service contracts on cars, homes, and other consumer
goods. He suggested owners be proactive and read the warranties before
their cars are in need of repairs. And, if necessary, ask the customer
service department for more information.

"Call the 800 number because the extended warranties are not limited to
dealers," he said. "Work with that company. They might have a place you
can take your car in lieu of the dealership."

While many of the closing dealerships offered great deals and incentives
to clear the cars off their lots, those bargains vanished Tuesday along
with the contracts between Chrysler and the dealerships.

Graham said there are probably few Chryslers left at those lots, since
the leftover vehicles were likely sold to surviving dealerships. But if
you do manage to purchase a Chrysler from a dealer no longer under
contract with the company, the manufacturer and powertrain warranty will
be honored at another dealership, she said.

 

<snip>

We bought our '02 300M at the end of the '02 model year when they were
including the 7yr/70,000mi warranty at no extra cost.

When our transmission had major problems about a year ago -- at about
75,000 miles -- the dealer said it was still covered and charged us only
the $100 deductible.

So were they being nice to me, or did they report a reduced mileage to
Chrysler, or did the 70,000mi warranties get extended? If the warranty
was extended, I need to find a new authorized service center to deal
with any significant problems in the future.

Perce