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Is it the perfect time to buy Chrysler?

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Schoolbuskid
Valued Contributor

Is it the perfect time to buy Chrysler?

Are there going to be major markdowns coming from chrysler since they filed Chp. 11 bankruptcy?

 

My mom said the news channel, mentioned that you may be able to get a new Chrysler vehicle for as low as $5000! Im guessing thats what they will sell their PT Cruisers for, but i havent heard of such talk yet!

Rebuilding and Reducing Debt, is my game plan.
Message 1 of 5
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Eager2Learn
New Contributor

Re: Is it the perfect time to buy Chrysler?

This is a solely a guess here, I would expect for more details to come out over the next few weeks.

 

That is probably going to be different depending on the dealership.  If the dealer is one that is scheduled to be closed and they have already paid for the vehicle on their lot, they may not be able to recoup that cost while Chrysler is in bankruptcy.  They may be simply trying to liquidate their inventories and get away with whatever they can prior to closing the dealership.  It would take a team of lawyers to go through all of the what-ifs in the contract agreements between the manufacturer and the dealerships as well as any preplanned stipulations going into bankruptcy. 

Message 2 of 5
Anonymous
Not applicable

Re: Is it the perfect time to buy Chrysler?

If Chrysler files going out of business BK- their vehicles become worthless both on a trade in front and in terms of getting a bank to finance them new or used.

 

Whatever Chrysler does, do not forget you are not buying a vehicle from Chrysler, but from a dealership selling Chrysler products that they have bought from Chrysler already. A new Chrysler vehicle for $5,000 means the dealership has to be buying them from Chrysler at less then that so they make a profit, or Chrylser is compensating the dealerships for the thousands over $5000 they spent on the, cars in their lots.

 

Since most domestic Cars are as expensive as they are due more to legacy retiree costs then the high hourly pay of current employees, and since BK does Abrogate contracts you could eventually see a come down in prices due to that reduced per unit cost.

 

But in that case your relatives who worked for Chrysler or retired from there are going to be broke, under uinsured or no insured, and probably losing their houses as their pensions and health care gets abrogated.

Message 3 of 5
Anonymous
Not applicable

Re: Is it the perfect time to buy Chrysler?

They filed for a chapter 11 restructuring, not a chapter 7 liquidation. It doesn't logically follow that the court trustee would allow the company to sell the cars at a steep loss; at least it doesn't to me.
Message 4 of 5
Anonymous
Not applicable

Re: Is it the perfect time to buy Chrysler?


@Anonymous wrote:
They filed for a chapter 11 restructuring, not a chapter 7 liquidation. It doesn't logically follow that the court trustee would allow the company to sell the cars at a steep loss; at least it doesn't to me.

 

exactly

 

But since the chap 11 does nullify contracts youc ould see future cars coming out cheaper

Message 5 of 5
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