Should he buy a Dodge

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iflyatiger

Pre-takeoff checklist
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iflyatiger
Hello Everyone,

There is such a wide selection of knowledgeable people on this forum I thought someone might be able to help me with a question.


A Friend of mine is buying a new 2008 Dodge car from a Dodge dealer that is on the list of dealers that are being dropped by Chrysler.

He is paying cash for the car and picking it up tonight. Is there any danger in buying this car for cash and having trouble down the road getting clear title to it? What if the dealer were to go bankrupt and not have paid the floor planning company for the car ?

Any info will be appreciated.
Thank you,

Jon
 
You can go to any remaining dealers for warranty service.

What happens with the title transfer is up to the lawyers here but I think the sale will go through long before the dealership loses the franchise. It's not like this makes or prevents the dealer going bankrupt. It just takes away their right to use the name and sell the products.

Would I buy one? No, but only because I think the quality only came up from poor for a short duration and it went back down with the Daimler - Cerebrus nonsense.
 
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iflyatiger said:
Hello Everyone,

There is such a wide selection of knowledgeable people on this forum I thought someone might be able to help me with a question.


A Friend of mine is buying a new 2008 Dodge car from a Dodge dealer that is on the list of dealers that are being dropped by Chrysler.

He is paying cash for the car and picking it up tonight. Is there any danger in buying this car for cash and having trouble down the road getting clear title to it? What if the dealer were to go bankrupt and not have paid the floor planning company for the car ?

Any info will be appreciated.
Thank you,

Jon
Click to expand...
If he buys it in cash, the State should issue him a new title when they register the car in his name. If he is concerned, pay a couple bucks for an escrow account to hold the money until the title gets to him, but it shouldn't be a problem.
 
Thanks Guys...

He just told me that the Dodge dealer is also a dealer for another car brand as well as a motorcycle line. This mad him feel beater that they would be sticking around to sell there other lines.

They also said that it would be awhile before they actually close the Dodge part of things.

Thanks again for your help.

Jon
 
The report I just heard stated that Chrysler was NOT taking back the inventory so I would presume that whatever the dealer has on the lot "NEW" would still have the manufacturer's warrantee.
It's rotten what Chrysler is doing but then, hard times call for hard decisions. Long time loyal franchisees are losing out. Customers are losing out. And GM is poised to do the same thing tomorrow.
 
I definitely feel bad for all of the employees who are effected. As a mater of fact his brother is a salesman at the dealership that I was referring to..
 
Let's see. What could go wrong with that plan? Guys says he is buying a car on the day that 25% of the dealers learn they have to fire-sale their inventory? It's the first time in history such an event has taken place, so can't see how that could drive prices down, can you? What will somebody have to pay for that unit next week? Next month?

iflyatiger said:
Hello Everyone,

There is such a wide selection of knowledgeable people on this forum I thought someone might be able to help me with a question.


A Friend of mine is buying a new 2008 Dodge car from a Dodge dealer that is on the list of dealers that are being dropped by Chrysler.

He is paying cash for the car and picking it up tonight. Is there any danger in buying this car for cash and having trouble down the road getting clear title to it? What if the dealer were to go bankrupt and not have paid the floor planning company for the car ?

Any info will be appreciated.
Thank you,

Jon
Click to expand...
 
wabower said:
Let's see. What could go wrong with that plan? Guys says he is buying a car on the day that 25% of the dealers learn they have to fire-sale their inventory? It's the first time in history such an event has taken place, so can't see how that could drive prices down, can you? What will somebody have to pay for that unit next week? Next month?
Click to expand...

I don't see it driving prices down in the short term. The dealer paid Chrysler $N for the car and intends to make profit $X on the sale. There is no need for a fire sale his problem is future inventory, warranty and maintenance business. The dealer will keep the price up on current inventory for the short term.
 
silver-eagle said:
The report I just heard stated that Chrysler was NOT taking back the inventory so I would presume that whatever the dealer has on the lot "NEW" would still have the manufacturer's warrantee.
Click to expand...
This is my understanding also. I would wait untill he is not an Chrysler dealer. Then he might lower the price to get rid of the car.
 
Obviously they're dropping these dealers because it costs the car maker a lot of money to support a dealer. I'm wondering for what.

The signs and cardboard can't be that big of deal. They have advertising credits, the floor financing? Don't the dealers pay a monthly fee?
 
YGBSM

RMCN172RG said:
I don't see it driving prices down in the short term. The dealer paid Chrysler $N for the car and intends to make profit $X on the sale. There is no need for a fire sale his problem is future inventory, warranty and maintenance business. The dealer will keep the price up on current inventory for the short term.
Click to expand...
 
RMCN172RG said:
Why. Do you think that~800 businesses are going to just close the door and go away because Chrysler says we're voiding your contract to sell and support our cars?
Click to expand...

One thing wrong on your assumption is that the dealers BUY the cars. They get the cars on the floor through a lease/financing deal with the credit arm called a floor plan where the dealer only pays the maker when they sell the car. There are financial cost penalties for the dealer if the car sits for x months which is why you might be able to make a better deal at the end of the month.

See "Fargo." :D

The dealer profit margin is some 10-20% + whatever they can weasel out of the buyer for crap which is no way to have the cash to sink into inventory.
 
ron22 said:
This is my understanding also. I would wait untill he is not an Chrysler dealer. Then he might lower the price to get rid of the car.
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Wrong! While he is a Chrysler dealer, he still gets "hold back" from the factory and will make money selling at his invoice. Once the franchise is gone, so is the holdback payment. I'd buy sooner rather than later.
 
mikea said:
One thing wrong on your assumption is that the dealers BUY the cars. They get the cars on the floor through a lease/financing deal with the credit arm called a floor plan where the dealer only pays the maker when they sell the car. There are financial cost penalties for the dealer if the car sits for x months which is why you might be able to make a better deal at the end of the month.

See "Fargo." :D

The dealer profit margin is some 10-20% + whatever they can weasel out of the buyer for crap which is no way to have the cash to sink into inventory.
Click to expand...

Floor plans are often run through local banks as well. Even "factory" floor plans are an independent agreement with the financial arm of the company and are separate entities from the franchise.
 
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