What a Car Manufacturer's Bankruptcy Means for You

If you own a car from a company that has filed for Chapter 11 bankruptcy or are looking to purchase a new vehicle, consider the following tips.

Car companies undergoing restructuring are continuing to support authorized dealerships with replacement parts so they can continue to service vehicles. Both dealerships and independent shops provide routine maintenance and repairs. Remember that warranties do not obligate you to dealerships.

If you do own a car produced by a company that has filed for Chapter 11, review your loan or ask your car dealer what the implications may be. Issues you should address include extended warranties, oil changes for life and service contracts. Keep in mind that service contracts are sold separately at an additional cost and are used to augment or extend the factory warranty coverage.

Some companies are offering sales-incentive programs for purchasing a new vehicle. GM created a program that may give you extra money if you trade in your current GM car for another. Additionally, with slow auto sales and high inventory, it’s likely you could get a good deal from a number of dealerships. But remember, only buy a car if you need it and not because you want it.

Visit www.FeedthePig.org for more money-saving tips.