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 ... ... that 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.
