Navigating Car Dealership Closures: Essential Steps for Car Owners

Update What to Do When Your Car Dealership Closes: Essential Steps to Follow Recently, the automotive industry has witnessed a wave of dealership closures across the nation, leaving many car owners in a state of uncertainty. For example, Tricolor, a leading subprime auto lender, announced the closure of 65 locations after filing for bankruptcy, impacting countless customers. If you've found yourself in a similar predicament with your dealership closing, fear not. Understanding what to do in such situations can help you navigate this unexpected challenge. Why are Dealership Closures Happening? Dealership closings can stem from several factors, including consolidations and shifts in manufacturer agreements. Scott Kunes, the COO of Kunes Automotive, highlights that manufacturers are increasingly encouraging the operation of larger, strategically located stores. This often leads to the closure of smaller or overlapping dealerships, which may better serve consumers through fewer, well-placed locations. How Will a Closure Impact Me? For most drivers, the impact of a dealership closing may not be as severe as one might fear. According to Kunes, manufacturer warranties remain valid at any authorized dealership, so you are not left entirely without options. While you may need to travel to a different dealership for service, your warranty coverage will remain intact, ensuring peace of mind during this transition. Steps to Take When Your Dealership Closes Should you find yourself facing the closure of your local dealership, follow these essential steps: 1. Find Another Authorized Dealer The first step is locating another authorized dealership nearby. The easiest way to do this is to visit the manufacturer’s website, where most brands offer a dealer locator tool. Simply enter your ZIP code, and you will find the nearest authorized service and sales locations, ensuring your warranty is honored. 2. Secure Important Documentation Documentation is key. Keep all important records, such as purchase agreements, lease documents, and warranty information, accessible. These documents serve to prove vehicle ownership and financing details, and they will ease the transition to any new service location. 3. Check on Open Orders and Deposits If you have any open orders or deposits with your closed dealership, reach out to the manufacturer or another authorized dealer promptly. Many establishments can redirect orders during the closure process, and having copies of receipts will facilitate the resolution. 4. Review Warranties and Service Contracts Inspect any warranties or service contracts you hold. Be sure they are still valid and will be recognized by the new dealership you choose. The last thing you want is to lose coverage due to a dealership closure. Emotional Impacts and Community Connections For many, a car dealership isn’t merely a place to buy vehicles; it’s a community hub. This emotional aspect can make facing a closure challenging. The feelings of loss, particularly when you have built relationships over the years, can be significant. Engaging with fellow community members who may be experiencing the same thing can provide much-needed support and camaraderie. Conclusion: Stay Prepared and Informed In a rapidly changing automotive landscape, it’s vital to remain prepared. Following these steps can help you navigate the closure of your dealership. Remember, your community isn’t just about where you purchase your car—it's about the people and relationships built along the way. Keep informed and active in your automotive choices, and you’ll empower yourself as a consumer. Now that you have the information to manage a dealership closure, consider sharing this article with friends who might also benefit. Staying connected and informed creates a stronger automotive community.