What GM’s Bankruptcy Means to Consumers
The company's troubles won't affect drivers too much in the short term, but car owners should expect to encounter service obstacles down the road.
General Motors filed for Chapter 11 bankruptcy on June 1 but will continue to do business during the restructuring—and hopes to emerge as a stronger, new GM within 60 to 90 days. “The remarkable thing about all of this is how unremarkable this will be for the typical consumer,” says Jack Nerad, executive market analyst for Kelley Blue Book. “It will be pretty seamless.”
| Row 0 - Cell 0 | What General Motors' Bankruptcy Means to Investors |
Expect to encounter some obstacles down the road, however. Here’s what GM car owners concerned about their service, warranties and loans need to know:
Service on your GM car
General Motors will continue to operate during the restructuring, and remaining GM dealers will still service GM vehicles—including Pontiac and other brands that may cease production—and honor GM warranties. Parts for all makes should remain available for a while.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
“There are a lot of these cars on the road, and suppliers will continue to make the parts,” says Patrick Olsen, editor in chief of Cars.com. “But over the years, the availability will decline as the number of these cars on the road declines.”
If your local dealer closes, you may need to travel much farther for your service. Olsen expects some former GM dealers to stay open as independent dealers who may continue to do servicing, but it’s important to find out whether they’re certified to do warranty work.
Warranties on your GM car
General Motors will continue to honor its warranties, a request it made to the bankruptcy court. And the U.S. Treasury Department has offered to back GM’s restructuring Web page or call 866-405-4005.
-
I'm 73 and hate winter, but I can't afford to be a snowbird.How can a snowbird wannabe warm up without the expense? We asked professional wealth planners for advice.
-
5 Smart Things to Do With Your Year-End BonusAfter you indulge your urge to splurge on a treat, consider doing adult things with the extra cash, like paying down debt, but also setting up a "fun fund."
-
Gen X Investors: Protect Your Portfolio From an AI BubbleAmid talk of an AI bubble, what's the best course of action for investors in their 50s and 60s, whose retirement savings are at risk from major market declines?
-
10 Things You Should Know About Buying a Car Today, Even if You've Bought BeforeIf buying a car is on your to-do list, and it's been a while since you went shopping for a new one, this guide will help avoid any nasty shocks in the showroom.
-
Get the Best Car Deal in Retirement: Here's the TrickPlanning on shopping for a new car this Labor Day weekend? Here’s how to haggle for a better price, even though you're retired.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Does Amazon Prime Day End in October? Everything We Know, Plus the Best Deals on Samsonite, Samsung and MoreAmazon Prime The Amazon Prime Big Deal Days sale ends soon. Here are the key details you need to know, plus some of our favorite deals members can shop before it's over.
