At least 20% of Chrysler dealer's stock is 2008's.

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Tonight, I visited a Chrysler dealer that is to get the ax as of June 9. I guess I was curious to see if there were any prices posted on the cars, and yes, the prices were there. Most vehicles were at least $7000 off. However, the thing that shocked me was that this dealer had about 50 Chrysler's on the lot, and at least TEN of them were brand new 2008's. Am I the only one that thinks that there's a huge problem right there? One that caught my eye was a 2008 Town and Country mini-van with an MSRP of nearly $30,000, that was already down to $21,000. I wonder what a little hard bargaining would get it down to... $19,000? Less?
 
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 Originally Posted By: mrsilv04
Tonight, I visited a Chrysler dealer that is to get the ax as of June 9. I guess I was curious to see if there were any prices posted on the cars, and yes, the prices were there. Most vehicles were at least $7000 off. However, the thing that shocked me was that this dealer had about 50 Chrysler's on the lot, and at least TEN of them were brand new 2008's. Am I the only one that thinks that there's a huge problem right there?
With a problem of that magnitude, I would expect them to end up going bankrupt.
 
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 Originally Posted By: XS650
With problem of that magnitude, I would expect them to end up going bankrupt.
Okay, I admit it... I LOL'd.
 
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I wonder if these prices are a true indication of how much a dealership truly makes on the sale of a car. It's always been my interest to know the financials associated with the market but I never had enough interest to get involved with a business (ie: become a car salesman). On another note, in my local area the Honda automobile company has leased a former car auction facility to store unsold Odyssey mini-vans. The local newspaper reported that they would store up to 3300 unsold vehicles for up to three months. It's impressive to see all of those vans parked neatly in rows.
 
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You don't have to get involved. I can tell you the dealer is losing his rear. New car markup is at an all time low. Of course a lot of that seven grand is rebate or whatever. Markup from cost to sticker price can be as low as $400 or around $3800 on the high end of a $50k SUV on a domestic dealer's lot. Think having '08's is bad? A local Hyundai dealer still has '07's.
 
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 Quote:
However, the thing that shocked me was that this dealer had about 50 Chrysler's on the lot, and at least TEN of them were brand new 2008's. Am I the only one that thinks that there's a huge problem right there?
When the factories churn out cars that dealers don't order just to keep the line moving, they have to end up somewhere. Alex.
 
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The local Chrysler dealership here still has many 2008 vehicles and even has a brand new 2006 300C SRT-8 on the lot that they are still trying to get $45,000 for.
 
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In a normal economy it would be almost unheard of to have any previous year models left as June approaches unless it is some kind of really odd vehicle( either extreme bare bones or extreme high end )that no "nitch buyer" has dropped in to grab. In the economy we are in today however it is not something that should surprise you. In my area every single dealership, including the import giants( Toyota/Honda/Nissan )not just GM, Ford, and Chrysler, have brand new 08's on the lot and advertised with thousands and thousands marked off. Guys, people are just not buying new cars period. It is not just a Chrysler thing nor a Chrysler & GM thing. It encompasses the entire auto market. Even the all mighty Toyota and Honda are struggling to sell vehicles.
 
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 Originally Posted By: GMGuy
 Quote:
However, the thing that shocked me was that this dealer had about 50 Chrysler's on the lot, and at least TEN of them were brand new 2008's. Am I the only one that thinks that there's a huge problem right there?
When the factories churn out cars that dealers don't order just to keep the line moving, they have to end up somewhere. Alex.
I remember working at Chrysler Canada in the 60's and they were building cars "on speculation" for a while. We had a sales slump and Chrysler was renting farm land in the county to park the cars that weren't selling..... many of them were in open fields and sank in the mud during wet weather. Chrysler went back to filling orders soon after that goin'-off.
 
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 Originally Posted By: NHHEMI
In a normal economy it would be almost unheard of to have any previous year models left as June approaches unless it is some kind of really odd vehicle( either extreme bare bones or extreme high end )that no "nitch buyer" has dropped in to grab. In the economy we are in today however it is not something that should surprise you. In my area every single dealership, including the import giants( Toyota/Honda/Nissan )not just GM, Ford, and Chrysler, have brand new 08's on the lot and advertised with thousands and thousands marked off. Guys, people are just not buying new cars period. It is not just a Chrysler thing nor a Chrysler & GM thing. It encompasses the entire auto market. Even the all mighty Toyota and Honda are struggling to sell vehicles.
IMO, we have reached a forced WalMart-ization of the auto market. Unless new cars prices substantially come down going forward, people aren't going to be spending $30K-$40K on a 'regular' vehicle. Heck, most sub-compacts are far overpriced IMO.
 

mrsilv04

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I didn't mention this earlier, but one of the 08's was a 300 that had a sticker price of over $46,000. And it wasn't a SRT either. It was some sort of a fully loaded "Heritage Edition". If I'm going to spend THAT kind of money on a car, it sure isn't going to be a 4 door from Chrysler. But the fact that they had three or four, reasonably equipped '08 Town and Country minivans (with MSRP's of just under $30k).... these aren't anything near what would be considered a niche vehicle.
 
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IMO, we have reached a forced WalMart-ization of the auto market. Unless new cars prices substantially come down going forward, people aren't going to be spending $30K-$40K on a 'regular' vehicle. Heck, most sub-compacts are far overpriced IMO. [/quote] I agree, when subcompacts, are asking for $17 for a top of the line Honda Fit. there is something wrong. With the economy in the tank, home values are going down, how come car prices keep going up? oh, and I would never buy a Chrysler product. They only way I would even test drive one is if their vehicles were 50% off!
 

mrsilv04

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 Originally Posted By: Cutehumor
oh, and I would never buy a Chrysler product. They only way I would even test drive one is if their vehicles were 50% off!
Wait until about June 6th, and then show up at a Chrysler dealer that has been given the ax, and whip out the checkbook. 50% might not be too unrealistic....
 
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 Originally Posted By: hone eagle
Get a realy good deal because the I do not have a lot of confedance in government run warrentee's
When our president told the public about how the government would stand behind a bankrupt car manufacturer's warranty, I had the vision of Mr. Obama lying on a creeper working on a car. As the customer walks up, he rolls out from underneath the car, grabs the rag from his back pocket, wipes the grease and oil off of his hands and in accurate detail tells the customer what is exactly wrong with his car. Seems silly? Of course. Just like the headache everybody is going to go through when they get warranty work done on their bankrupted car. This will be rife with abuse.
 
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 Originally Posted By: mrsilv04
 Originally Posted By: Cutehumor
oh, and I would never buy a Chrysler product. They only way I would even test drive one is if their vehicles were 50% off!
Wait until about June 6th, and then show up at a Chrysler dealer that has been given the ax, and whip out the checkbook. 50% might not be too unrealistic....
anyone have an idea what a Dakota might go for at 50 Percent off? They can't be that bad of a truck if new, compared to used, especially if you're a person who reads these boards and does all the maintenence as called for and found out by others.
 

mrsilv04

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 Originally Posted By: FXjohn
anyone have an idea what a Dakota might go for at 50 Percent off? They can't be that bad of a truck if new, compared to used, especially if you're a person who reads these boards and does all the maintenence as called for and found out by others.
2009 Dakota pricing: http://consumerguideauto.howstuffworks.com/2009-dodge-dakota-2.htm However, if they can, dealers that are closing will be selling their inventory off to other Dodge/Chrysler/Jeep dealers who aren't. However, other dealers aren't going to want any 2008's. There's your opportunity to bargain hard.
 
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 Originally Posted By: mrsilv04
 Originally Posted By: FXjohn
anyone have an idea what a Dakota might go for at 50 Percent off? They can't be that bad of a truck if new, compared to used, especially if you're a person who reads these boards and does all the maintenence as called for and found out by others.
2009 Dakota pricing: http://consumerguideauto.howstuffworks.com/2009-dodge-dakota-2.htm However, if they can, dealers that are closing will be selling their inventory off to other Dodge/Chrysler/Jeep dealers who aren't. However, other dealers aren't going to want any 2008's. There's your opportunity to bargain hard.
cool..also interested in word of mouth and speculation. Come on, these are safe vehicles to buy. I might..who knows. maybe even a ram in short box, single cab and a stick shift...
 
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