What Happens If My Car Dealership Goes Out of Business?

When a car dealership goes out of business, it can create a lot of uncertainty and confusion for customers who have purchased vehicles or are in the process of buying one. Understanding what happens in such a situation can help you navigate through the challenges and ensure that your interests are protected.

What happens if my car dealership goes out of business? If your car dealership goes out of business, several scenarios could unfold. Firstly, if you have already purchased a car from the dealership, your warranty and service agreements should remain valid. These are typically backed by the car manufacturer rather than the dealership itself. You should contact the manufacturer directly to confirm the status of your warranty and service agreements. Secondly, if you have a pending purchase or deposit with the dealership, you may need to take legal action to recover your funds. It is advisable to consult with a legal professional to understand your rights and the best course of action.

Impact on Financing and Leasing

If you have financed or leased your vehicle through the dealership, the closing of the dealership should not affect your loan or lease terms. These agreements are usually handled by third-party financial institutions. You will continue to make your payments to the financial institution as per the agreed terms. It is important to keep all documentation related to your financing or leasing agreement in case any issues arise.

Service and Maintenance Concerns

For ongoing service and maintenance, you will need to find an alternative authorized service center. The car manufacturer’s website usually provides a list of authorized service centers where you can take your vehicle for warranty repairs and regular maintenance. Make sure to keep all service records and receipts, as these will be useful if you need to claim warranty repairs in the future.

In case you have purchased an extended warranty or service contract from the dealership, you should review the terms and conditions to see if it is backed by a third-party provider. If it is, you can contact the provider directly to continue receiving the benefits. If the extended warranty was solely offered by the dealership, you might need to explore other options for vehicle protection.

While the closure of a car dealership can be inconvenient, knowing your rights and taking the necessary steps can help you manage the situation effectively. Make sure to keep all relevant documentation and consult with professionals if needed to ensure your interests are safeguarded.