How to Benefit from Chrysler’s Fire Sale
Chrysler (who also owns the Dodge and Jeep brands) is forcing 789 dealerships to close, leaving about 44,000 vehicles at a potential bargain for you. These dealers basically have until June 9th, when their franchise agreements end, to unload all of their vehicles. After that date Chrysler will no longer give warranty reimbursements, rebates (some totaling up to $6,000), and low interest financing.
Chrysler Fire Sale
What does this mean for you? Well, if you’re in the market for a new vehicle, Chrysler is having a fire sale. Yeah, I know, Chrysler’s vehicles are not the best. But if you’re looking for a dirt cheap new vehicle, this might be an opportunity that comes along, well, at most about 3 times per generation.
Why you could Find a Dirt Cheap New Vehicle
Odds are that if you can find a dealer near you that is closing, you can probably bring a low ball offer into the dealer and it will be considered (if not jumped on). The closer to June 9, the more desperate closing dealers will be to move the vehicles, or risk losing out on the rebates from Chrysler. That’s not too many days to sell a whole lot of vehicles, and a lot of incentive to do it.
Other Circumstances that Make this Potentially a Good Time to Buy a New Car
I’m not a huge proponent of buying new vehicles unless the opportunity is just right. In addition to this fire sale, there are other good reasons why right now might be a good time to buy a new vehicle.
- Sales tax deduction: buy new and you could write-off the sales tax on your 2009 tax return if your locale has sales tax. No need to itemize either.
- Huge Rebates: Chrysler (not the dealer) is offering huge rebates right now.
- Low Interest Financing: not sure how many closing dealerships will still be offering this or if Chrysler itself is.
- Government Backed Warranties: Chrysler and GM warranties are now being backed through the TARP on vehicles purchased starting in April of this year.
- Future Inflation: with the Obama administration announcing vehicle fuel standard increases, new cars are expected to increase in price by $1,300 by 2016.
If you are Considering, be Patient, and Play your Cards Right
Here’s three things to do, if you’re considering this.
1. Really consider the costs/benefits of buying new vs. used vs. public transportation. If you decide this is for you, sleep on it before you go to a dealership
2. Find a Chrysler dealership near you that is closing. The Wall Street Journal has an interactive map of closing dealerships.
3. Google the dealer cost on the vehicle you are looking for. This should be a good starting point for determining the absolute max you would want to pay.
4. Read 12 Tips on how to get a good deal on a new car. Stick to the principles. Lowball like you’ve never lowballed before.
- Does a new Chrysler at a dirt cheap below dealer cost motivate you to want to actually buy a Chrysler?
- If you give this a shot, keep us posted!