Forget the Fiat. Is this a good time to buy a Chrysler? I recall when Sterling went belly-up there were some insane deals going around.
What are your local dealers doing?
A dealer has sunk inventory costs in floor planning the car. If the option is to go bankrupt by filing papers all at once or go bankrupt one car at a time by selling them below cost why would a rational dealer bother selling the car at that price?
You may be able to get a deal from the liquidators once the cars are repossessed but why would the original dealer bother with the hassle of giving his cars away one at a time?
The dealer may not be going bankrupt. The dealer may have multple brands to sell and have a large interest is clearing the lots of Chryslers to make room for some other type.
I’m not sure about what the implications are for warranties, but if the dealer expects not to be obligated to support the warranties, all the more reason to cut a better deal.
As a buyer, though, the warranty would be one of my biggest concerns.
Unlike the local GM dealers in this area, Chrysler dealers have been nearly silent. I’d say the ratio of GM advertising to Chrysler advertising is roughly 5:1. I suspect the Chrysler/Dodge dealers aren’t just broke, but they’re deliberating sitting out until they get a better handle on the future.
IMHO Fiat will do to Chrysler what Chrysler did to AMC – keep Jeep (and maybe the trucks and minivans), rebadge a couple of Fiat models, and let the Chrysler/Dodge marques die after a few years.
Breaking news – Chrysler has just filed for Chapter 11 bankruptcy, after negotiations with some of their bondholders broke down last night. Unlike a nicely packaged preplanned Chapter 11 reorganization, this appears to be something they were pushed into. Obama just announced that Fiat and Chrsyler have reached a deal, that GMAC will fund Chrsyler auto loans, and that Chapter 11 will bring the reluctant bondholders into line. Maybe so, but a lot of people are going to take a hit, and Chrysler will be substantially weakened.
Back to your question – around here you’d probably get as good or better deal on a GM car.
Some of the dealers will be contracted by the terms of the bankruptcy. I imagine that Chrysler/Fiat will be obligated to buy back their outstanding stock, so don’t expect to be getting a Grand Cherokee for $500 or anything.
If in fact Chrysler is no longer doing buisiness as opposed to restructuring I would think getting parts might be a bit tricky a few years down the road.
It’s not going out of business. Fiat will keep it running in exchange for a gradually increasing stake in the company, and the Treasury is guaranteeing Chrysler warranties.
Frankly, if I were looking for a new American-make car over the last year, I’d have considered Ford and GM but not Chrysler. I just don’t think very highly of their products in comparison. Even a “bargain” might not be a good value.
Ford’s recent offerings have been almost perversely good, considering that the company shouldn’t be able to spend more than $1.50 in R&D costs per week.
They’d be even better if they would bring the superb 4th-generation Mondeo over here instead of the flabbier Fusion.