Posted on 05/18/2009 3:57:46 AM PDT by Lusis
DETROIT (AP) -- At 789 Chrysler lots across America sit 44,000 potential bargains, cars and trucks that are stuck between shellshocked dealers and a troubled company that no longer wants their services.
The dealers have just a few weeks to sell the Chryslers, Dodges and Jeeps or risk losing thousands of dollars on them, giving people who want a car on the cheap a serious chance for a deal.
"You've got some very good negotiating power," said Dave Champion, director of automobile testing for Consumer Reports magazine. "(Dealers are) really looking to shift this inventory. It's just stacking up all around them."
On Thursday, Chrysler LLC asked a New York bankruptcy court to end its franchise agreements with the dealers, casting them aside so the automaker can move forward as a new company with a leaner network of about 2,400 showrooms.
(Excerpt) Read more at finance.yahoo.com ...
With all the bailouts; all the government interference in free markets; all the talk of how I should be taxed into oblivion, I am comforted by one thing......
I still control myself, my family, and my finances.
I will not support Chrysler in any way, at any price.
And if the GM deal goes down the same way, the same rules will apply.
I wont be buying any cars from GM or Chrysler.
What good is a deal with a bankrupted company?
Buy from a dealer who is closed down and expect the dealer next door to accept your warranty work with open arms? Hardly.
Nope I will buy a Ford if I buy any American car.
the Ford dealership up the road a piece is offer some very good deals as well...
I would have no problem buying a Chrysler or GM (even in bankruptcy), provided I wanted the product.
Once they became wards of the State, no longer.
The have an outstanding balance to the taxpayer. I don’t relish their failure, and I don’t dance on their graves. I simply turn my back on them.
I’m not so sure about this. I thougth most new cars on dealer lots remain the property of the manufacturer until it is sold. The car maker still retains title so to speak. If that’s so, then the dealer can walk away from the inventory. Now the dealer can make a deal with the maker for reduced prices and pass those prices along but the premise of this article is that these dealers own the inventory on their lots and I don’t think that’s true.
I’m suspecting that the real deal with these dealers who are closing down will be on their used car inventory. That inventory, the dealers truely own. That is, unless these dealers aren’t planniing on becoming used car dealers exclusively.
Maybe these cars can become homeless shelters and the American Taxpayer can buy them ?
LOBAMBA Motors
We do everything backwards......my dh bought a Dodge Truck two weeks ago.
Duke ... the new cars on most dealer’s lots are owned by the dealer. The dealer buys them from the manufacturer and then sells them to us. In the meantime the dealer borrows the money he needs from the bank using the car as collateral. This is called a ‘floor plan’, a special kind of loan. The dealer lives on the difference between what he bought the auto for and what he can sell it to you for.
So, there are going to be some real deals out there for the next few months. But like any kind of a sale, the cars that people really want will sell first. And here is a bit of irony, the banks could end up repo-ing the cars nobody wants! Kinda like the real estate loans nobody wants ...
I’m getting a Fusion today or tomorrow...unless they try a sneaky.
It's amazing how abrogating the franchisee agreement is good for Chrysler but canceling the UAW contract is not on the table. There is a cost to distribution but small compared to the union cost, small.
>> I would have no problem buying a Chrysler or GM (even in bankruptcy), provided I wanted the product.
Yeah, that’s the problem in a nutshell. I love a good deal as much as the next person, but the only thing that’s for sale is Chryslers and General Motors products... yecch.
Absolutely.
If the Socialist Obama government controls it, no matter WHAT “it” is, we shouldn’t support it in any way.
Dealers make money on all work, including warranty work. Some dealers make more money on service than repair. If one service dept in town could wave a magic wand and get all the service for a town, they'd do it without blinking.
Agreed, FRiend.
And that goes for Ford as well, I’m afraid.
The UAW will never see a penny of my business again.
Same here, except I plan to dance on their graves. Until then, I have turned my back on those thieves. I don't care if their cars are half the price of the (much better) vehicles made by other companies, I won't buy GM or Chrysler - ever. I don't deal with crooks.
You’ll getting a new car-Oprah,I mean Obama!
......The car maker still retains title so to speak.......
The dealers can just do nothing. Here they are Chrysler, come get them but before you load the truck here is the bill for interest and storage while they were here
The man who loaned the money owns the cars. The dealer can tell him to come get the cars.
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