Feb 18, 2009 7:22 pm US/Eastern
What To Know About Car Models That May Be Cut
DETROIT (CBS) ―
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(L-R) Chairman and CEO of General Motors Richard Wagoner, United Auto Workers President Ron Gettelfinger and President and CEO of the Ford Motor Company Alan Mulally testify before the Senate Banking, Housing and Urban Affairs Committee on Dec. 4, 2008.
Chip Somodevilla/Getty Images
General Motors and Chrysler are now waiting to find out if they'll receive additional loans after the companies presented the Treasury Department with their plans for staying viable on Tuesday.
Chrysler says it will cut 3,000 jobs and three car models. GM says it will eliminate 47,000 jobs worldwide and will slash its car brands in half.
Some of those brands on the chopping block include a Saturn, Hummer, and Saab.
Also part of its downsizing, GM is supposed to shrink its 6,600 dealership network down to about 4,700 dealers by 2012. All of this has consumers very concerned about their warranties and service costs, but here's what we've learned so far:
Even if your car is discontinued, GM should still honor your warranty. Experts also say parts and services for these specific cars will still be available at other GM dealerships at comparable prices, similar to what happened when Oldsmobile was discontinued.
What happens if you're leasing one of the brands that gets dropped?
If you're leasing a discontinued car or have a loan, both should remain the same. The terms of your lease will still be honored by the parent company's finance arm, which is GMAC Financial Services. If you have a car loan,just continue making your monthly payments.
Should you try and sell a dropped brand?
No. If you were thinking about selling your discontinued car, experts say reconsider. The resale values of these brands, which aren't strong to begin with, are expected to fall even further – up to 40 percent – after they get cut.
But on the flip side, if you're looking to buy, you could probably get a great deal on a killed car as dealers look to clear their inventory of the lots.
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