Chrysler will revoke the franchise agreements of 789 dealerships nationwide, meaning the dealers can sell no more cars, next Tuesday. So, nationwide, nearly 800 Chrysler, Dodge and Jeep dealers want to sell everything on their lots, at any cost, in five days.
Many lots are already nearly empty. USA Today reports, "Car buyers and deal-hunters heading out to Chrysler showrooms this weekend hoping to snag a once-in-a-lifetime deal may be out of luck: Closing dealers have little inventory to sell." When Chrysler announced its intention to close the dealerships, they had a collective inventory of more than 40,000 cars. Now, USA Today reports, they "have only 1,981 vehicles left to sell."
The leftovers, at this point, are mostly models that are not in high demand. USA Today notes, "Dealers closing down soon sold 16,000 cars in May, and another 23,000 have been cherry-picked by dealers remaining in business." Since those dealers naturally bought the vehicles they knew they'd have an easy time selling, the leftovers are among the least popular cars. For those cars, however, good deals are available.
Ray O'Bryhim, owner of Pohanka Chrysler-Dodge in Leesburg, Virginia, told CNN "As we get closer to June 9, we're going to have to do what we have to do to move these cars." He "points to a new [Dodge] Nitro he has discounted 40% off the sticker: $17,510 instead of the MSRP of $29,170. Soon, he says, he may mark it down even further." Hamid Saghafi of nearby Dulles Motor Cars "says they are ‘taking a beating,' asking $10,000 less than the invoice price for high-end models like the Jeep Commander. But he still worries they won't be able to sell them all in time."
If you do plan to go out bargain-hunting this weekend, dealers say, be respectful of the dealers' plight. These are business people losing their investment, and they're not willing to listen to insulting offers. Chuck Smith, owner of Hamilton-Fairfield Dodge-Jeep, told Ohio's Oxford Press, "You won't be getting a $30,000 car for $10,000. That's just unrealistic."
You are also not their only option. After the Tuesday deadline, dealers still have the option of selling the vehicles to dealerships that will survive the current round of cuts. Chrysler has closed all of its manufacturing facilities during the bankruptcy process, so surviving dealerships may look to buy from the closed dealerships if their own inventory begins to dwindle.
If you're in the market for a new car, check out the U.S. News rankings of this year's best cars as well as this month's best car deals.
