If you were looking for a Chrysler now is the time to haggle.
Chrysler LLC will eliminate 789 dealers, or 25 percent of its U.S. network, by June 9, according to a memo sent today to retailers in one sales region.
“Chrysler will not be required [per bankruptcy law] to buy back the vehicles or tools and parts from rejected dealers,” the memo says. “We will match you with an accepted dealer(s) to buy your parts, tools and vehicles.”
Why would they do that, it says that Chrysler will be required to buy back vehicles and tools. Most domestics are already sold at a loss to the dealer as it is to try and build service/parts business. Doubt you’ll see any better deals than you already do as a result of this.
Correct most cars on a dealers lot are wholesale floor planned with a bank or Chrysler’s captive finance company Chrysler Financial
But if the dealer doesn’t sell the cars to the public or another dealer they would take them to auction and what % do you think a brand new 2008 is going to draw at auction?
What is the cost to the automakers of dealerships? In other words, what does the dealer pay for and what does the maker pay for? I guess I always ass-u-med that the dealer paid for everything like signs, training, tools, lawn mowing, etc, etc.
