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Flash McCord
Member
| Joined: | Sun Jun 19th, 2005 |
| Location: | Wylie, Texas USA |
| Posts: | 21 |
| Mana: |  |
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Posted: Fri May 22nd, 2009 02:30 pm |
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I'm hearing rumors...
in conversations with non-professional car people, that there are some ridiculously good deals to be had from disgruntled Chrysler dealers- much like the two dollar Maserati offers from spiteful divorcees- (per the urban legends.)I don't mean $2 cars, but perhaps new cars going for $3000? I've heard some pretty wild tales.
Can this be true? How low are they moving them out at?
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trusty sidekick
Administrator
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Posted: Fri May 22nd, 2009 04:31 pm |
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Flash McCord wrote: I'm hearing rumors...
in conversations with non-professional car people, that there are some ridiculously good deals to be had from disgruntled Chrysler dealers- much like the two dollar Maserati offers from spiteful divorcees- (per the urban legends.)I don't mean $2 cars, but perhaps new cars going for $3000? I've heard some pretty wild tales.
Can this be true? How low are they moving them out at?
in a word: no...
the dealers bought their inventory from chrysler...if they paid, say $20,000 for a car, they're not going to be selling it for $3,000...
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The CarGuy
Administrator
| Joined: | Wed Jun 22nd, 2005 |
| Location: | |
| Posts: | 434 |
| Mana: |   |
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Posted: Thu May 28th, 2009 02:42 pm |
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Flash, here's an article i had in last weeks CarGuy Weekly, our newsletter:
I have been asked about this for a week by many listeners and even tons of the local and national media. There seems to be a perception that because these dealers are closing, they are going to be giving cars away. This is a myth, and I'll explain why.
If I am a Chrysler dealer and got "the letter" giving me until June 10th to close my doors, a lot of things are going through my mind. But losing money on a car is the last thing I want to do at this point. Let's say I have a new 2009 Chrysler 300 in stock for instance with an MSRP of $27500 and my cost is $25000. Until the car sells, I have a balance owed to Chrysler Credit or a bank for $25000. If I sell it at a loss, say for $15,000 (this has NOTHING to do with rebates) then I have to put $10,000 in cash with your contract to pay off the car.
What will happen on June 10th is the terminated dealers will file bankruptcy or lock the doors and walk away. Either way, the cars will go back to the lender, in most cases it will be Chrysler Credit. So now what?
Those cars will be redistributed to the remaining dealers. Remember, Chrysler has shut down ALL their plants for at least 2 months, maybe longer depending on how long the Chrysler Bankruptcy lasts. These vehicles will be badly needed by August. So bottom line, there will be no huge sales because of the dealers going out of business.
I'll say it again, buying a car from a desperate dealer can be an extremely dangerous thing. They can do anything they want to because they know you'll be gone once it is discovered by you!
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