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Why are the dealers that was dropped by Chrysler getting bent out like they are stuck with the jeeps?

isn't there a factory warranty still? Most have bought the inventory they have so they still just sell it correct? And the parts inventory still around.

I guess they just don't wanna be dropped.

  • Super User

Don't know.

Our Jeep dealer is OK, so far, and we expect him to remain in business.

I don't think the dealers know what is going to happen.  >:(

  • Super User
Why are the dealers that was dropped by Chrysler getting bent out like they are stuck with the jeeps?

The dealers are stuck with a cost that's higher than the Jeeps

can be sold for today. When they discount them 2 for 1, the

dealers will have to eat the loss. If no one was buying them

before the bankruptcy, why would they sell now?

Exactly RW.  I believe they have a 2 month grace period on this and after that, if they havent been sold, those guys are taking a hit.

  • Author
Why are the dealers that was dropped by Chrysler getting bent out like they are stuck with the jeeps?

The dealers are stuck with a cost that's higher than the Jeeps

can be sold for today. When they discount them 2 for 1, the

dealers will have to eat the loss. If no one was buying them

before the bankruptcy, why would they sell now?

So, they still can sell them ::)

Most have bought the inventory they have so they still just sell it correct?

Actually most all of them are on a floor plan and they only pay interest on them till they are sold then they pay for it when it's sold.  Why in the world would you want to buy a Jeep anyway.  For years they were just a hodge podge of surplus Chevy and Ford parts anyway.  Probably why Chrylser lost so much they actually started making they're own parts and they are just garbage.

  • Author

I like the real jeeps, not the Cherokees.

so if they didn't pay for them does that mean they are free if they bankt on them?? This seems what I'm confused it sounds like they got free jeeps?

They aren't free it is like they buy them the same as you do directly from Chrysler but they only have to pay the interest on the loan till they are sold and then they pay whatever the cost was.   Say the cost is $15,000 and they sell it within 30 days they pay only the 15K.  If they still have it on the lot after 30 days they pay the interest which is wahtever percentage of the 15K they have worked out with Chrysler.  The ones that are shutting down would sell whatever inventory they have to other dealers, of course they won't make any money off of them and thus why they are so upset, well that and they are losing their livelyhood.

New car dealers actually make their money off of used cars and service not off new sales.  When warranty work is done the manufacturer pays the dealer the full price for the work done.  

so if they didn't pay for them does that mean they are free if they bankt on them?? This seems what I'm confused it sounds like they got free jeeps?

The dealers purchase their inventory.  That purchase is then financed through the manufacturer so the manufacturer is in essence loaning the dealership the money to pay for the car that they are trying to sell.  However, the ownership of that car is at the dealership.  So they aren't getting it for free.

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