GM, Chrysler dealerships closing: good time to buy?
Chrysler has closed more than 700 dealerships nationwide, and now more than 1,000 General Motors dealerships are facing a similar closure fate.
Yesterday, the out-of-luck owners on the Chrysler dealership closing list were told they have a limited time to get rid of their inventory. I'm curious: is anyone tempted to buy a vehicle from one of these dealers, because clearly with the need to move product, there could be a lot of room to bargain and negotiate.
As business reporter Andrea Walker wrote:
Chrysler won't buy back the 40,000 vehicles that are on the lots of the dealers slated to close. The dealers won't be able to sell the cars themselves after June 9 when they are no longer affiliated with the company. Chrysler said it will help redistribute the cars to remaining dealers and said there should be a demand for them because the automaker isn't producing cars while it's in bankruptcy proceedings.
Dealers get loans to purchase cars from the manufacturer, Andrea says, so if they don't make the sales and if Chrysler doesn't have to buy them back, they are in a tight situation.
Then again, you might wonder about the fate of your rebates and other incentives if you've already bought a car from one of these endangered dealers. Consumer Reports offered advice last month about bankrupt car dealerships and other potential problems.
UPDATED: Here's an Los Angeles Times primer on how warranties and rebates would be affected by Chrysler, GM dealership closings. According to them ...
(Photo: Lloyd Fox/Baltimore Sun)
... prices have already been slashed, so dealers might not have much more room to cut. Also:
In addition, with sticker prices already low, buyers need to be wary of aggressive attempts to get them to buy pricey add-ons, such as extended warranties or fabric protection, he said. And with so much unsold inventory sitting on dealer lots, buyers need to make sure that the car they think is a 2009 model isn't actually a leftover 2008, said [Philip] Reed of Edmunds.com.
Comments
The deals will not be any better. If the vehicles are not re-distributed to other dealers, the dealers may give them back to the financial company who is flooring the inventory.
Posted by: Robert | May 16, 2009 3:18 PM
There aren't any deals out there now! I am looking to buy a 2009 Dodge Journey and got pricing this weekend - no one is offering anything less than the rebates and are actually letting me walk away.
Wow, Crystal ... you'd think they needed the sales now more than ever. ---lfk.
Posted by: Crystal | May 17, 2009 10:11 PM
Moore Buick,Pontiac,GMC. In Jacksonville, nc will be another one that closes, Sad times, Good luck .
Posted by: RB | May 18, 2009 3:02 PM
Do not buy now. Prices have went up insteaed of down. You will be robbed royaly now if you rush to buy. Wait it out.
Posted by: Joe,s Corner | May 19, 2009 7:48 AM
This isn't true. The deals will be better. They already are. Some of the inventory here in central Ohio is going for 40% below sticker right now. The cars cannot be given back because they are in bankruptcy. The cars have to be sold now or they are going to go to the highest bidding dealership. Those dealers are wary of taking on extra inventory at this time so they won't be offering much. The dealers who are closing really do need to take whatever they can get right now.
Posted by: Kevin | June 3, 2009 6:15 PM