GM Car Warranties Still Good Despite Bankruptcy
Unless you've been living under a rock, you've probably heard the news that GM filed for bankruptcy this week.
Many car buyers are now worried about whether GM will be able to provide warranty coverage.
The government has agreed to provide $361 million towards covering any GM warranties for cars purchased during the bankruptcy process. Chances are, if you buy a GM car and it breaks down, you won't have to worry about it.
The one thing you WILL have to worry about is a drop in resale values. It's likely the prices of late-model GM cars will drop (as happened with Chrysler after they declared bankruptcy).
Also, with GM in the process of terminating 2,000 dealers over the next couple of years, it may be more difficult to service your car locally. Just some things to keep in mind if you're thinking of buying a GM car.
My Recommendation for Car ShoppersTrueCar, Edmunds, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
California Residents - Important:There is a new online car buying service called Roadster, available only to California residents, which I highly recommend you try - especially if you hate the stress of haggling with a car salesman. They provide an expert concierge who negotiates the price of the car and delivers it to your home with zero hassle - you never have to interact with a dealership. Here is my in-depth review of Roadster and why I recommend it.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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