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Smart Shopper Got a Quick Question for a Car Dealer?
2394 messages, Last post on Nov 03, 2009 at 11:03 AM
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Replying to: smallcar (Apr 14, 2009 12:32 pm) |
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Does anyone have an idea as to how a Chrysler or GM bankruptcy would effect dealers? What I am asking is, if a dealer is still able to sell the cars on their lots after a bankruptcy by an automaker, would the prices go up or down, or stay the same? I'm thinking that since the dealer has to pay the automaker for the cars, that generally the prices and process wouldn't be too different from now, unless they were stuck with a lot of cars. Thoughts anyone?
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Replying to: sabre52270 (Apr 22, 2009 5:09 am) Which scenario are you envisioning? CH 11 is protection from creditors until re-organization can occur; CH 7 is complete liquidation of the company.
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Replying to: Mr_Shiftright (Apr 22, 2009 5:54 am) We could guess all day as to what could happen to Detroit - GM goes 11, Chrysler 7, Ford 11, sell-offs, etc. I think in most cases dealers would be debtors of the failed automaker, and be pushed to return some funds to the trustee, which would stress the dealers pockets and some would close due to it - more likely in a 7 but still possible in an 11 as reorg doesn't mean everyone gets to stay with the "new" co. In the end, I don't think it really matters that I didn't specific which, for forum purposes at least. Besides, I think it would be interesting to see comments from everyone on both.
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Replying to: sabre52270 (Apr 22, 2009 6:23 am)
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Replying to: Mr_Shiftright (Apr 22, 2009 7:23 am) This brings us back to the question - does anyone have an idea of the effect of bankruptcy on dealer prices? I know its a broad question, but maybe some dealer employees have heard things, or a dealer has gone down already in your area and you've seen the result. I'm interested to see the comments on this.
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Replying to: sabre52270 (Apr 22, 2009 7:33 am) I was following the Circuit City liquidation and most people commented that there were really no "deals" to be had. Prices may go down after 30-60-90 days, but you choices are limited to what is available and don't expect any breaks from a non-existent service department if something breaks!
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