It’s possible you’ve heard the news that many car dealerships are closing their doors— or maybe you’ve even experienced this firsthand this past year. Car dealerships across the country have been closing over the summer into early fall. For example, subprime auto lender and used car retailer Tricolor recently filed for bankruptcy and announced closures of 65 of its locations across the Midwest, leaving many customers in the dark.
For some, this news has been a cause of concern, as closures affect dealerships with which they have longstanding relationships or limit options in remote areas. Whatever the case may be, car dealerships are closing at an alarming rate, which could have an impact on car owners both now and in the future.
Ahead, we spoke with a car dealership expert about why car dealerships are closing and what you should do to make sure you are prepared if it happens to you in the future.
Why Dealerships Are Closing
According to Scott Kunes, chief operating officer of Kunes Automotive and RV Group, which operates more than 40 dealerships across the Midwest, car dealership closures can happen for a variety of reasons. Most often, they close due to consolidation, shifts in manufacturer agreements or changing consumer demand in a specific area.
“In today’s market, manufacturers are encouraging stronger, more strategically located stores, which sometimes means smaller or overlapping dealerships close so that consumers can be better served by nearby locations,” he tells Family Handyman.
How a Dealership Closing Can Affect You
For most drivers, the impact is minimal. “Manufacturer warranties are honored at any authorized dealer, so consumers are not left without service options,” Kunes says. “The biggest change is usually convenience; it may mean visiting a different nearby store instead of the original local location.”
In other words, you won’t be left without support, but you may be left without a nearby location.
What Customers Should Do Next

If your car dealership has closed down, there’s no need to worry. However, you’ll want to take action to make sure all of your ducks are in a row.
Find Another Authorized Dealership
For starters, you’ll want to find another authorized dealership, preferably one close to where you live.
“The most reliable way for a consumer to find an authorized dealership is through the manufacturer’s website,” Kunes says. “Nearly every automaker provides a dealer locator tool where drivers can search by ZIP code to confirm the closest authorized service and sales locations, and this ensures warranty coverage will be recognized.”
Secure Important Documents
Next, you’ll want to make sure you have all of your important documents in your possession.
According to Kunes, you should keep copies of the purchase agreement, finance or lease documents and any warranty or service contracts. “These records prove vehicle ownership, financing terms and coverage,” he explains. “Even if a dealership closes, having that paperwork ensures the driver can continue service and warranty coverage at another location.”
Track Open Orders or Deposits
The next order of business is to keep track of open orders and deposits for your vehicle. If you placed an order or left a deposit, it’s important to follow up quickly. “Contacting the manufacturer or another authorized dealer can often resolve the issue, as many orders can be redirected and deposits should be accounted for during the closure process,” Kunes explains.
Make sure you hold onto receipts and order confirmations as well as these documents will be helpful down the line.
Check on Warranty and Service Contracts
It’s important to note that for the majority of drivers, a dealership closure doesn’t mean being left high and dry. “Even if a dealership closes, most customers are still protected,” Kunes says. “That’s because the majority of warranties and service contracts are backed by third-party administrators or the manufacturer itself, which means the coverage follows the vehicle, not the dealership. Drivers can usually go to another authorized repair center and still get the benefits they paid for.”
The best step for any vehicle owner is to review their paperwork and contact the warranty administrator listed to confirm coverage. “These protections are designed to provide stability and peace of mind throughout the life of the vehicle, regardless of any unforeseen changes that may happen on the business side,” Kunes adds.
FAQ
What if my registration, plates, or title weren’t processed before the dealership closed?
In this situation, the state DMV or motor vehicle agency is the best resource. “They can confirm the status of paperwork, license plates and guide you on next steps if something was left incomplete,” Kunes says. “Having a bill of sale and temporary registration ready will help the process go more smoothly.”
How do I get my vehicle’s service records if the dealership has closed?
This can vary based on your personal situation; however, many dealerships use digital systems for service records, which means records can often be transferred to another location within the same group or accessed through the manufacturer.
“When a consumer has purchased through a large group, those records can typically be shared across affiliated stores, creating an added layer of continuity,” Kunes explains. “If digital records are not available, drivers should maintain personal copies of service receipts going forward.”
About the Experts
-
Scott Kunes, chief operating officer of Kunes Automotive and RV Group
RELATED:
- Do You Know What That Little Button on Your Seat Belt Is For?
- What Those Lines on Your Backup Camera Really Tell You
- Here’s What The Small Panel On Your Car’s Front Bumper Is For
The post What To Do When Your Car Dealership Goes Out of Business appeared first on Family Handyman.
Article source here: What To Do When Your Car Dealership Goes Out of Business




















