- 2009 Dodge Challenger
The biggest question a GM, Ford, Chevrolet, Pontiac, Buick, Lincoln, Mercury, Dodge, Chrysler or Jeep owner has to ask themselves these days is “What is the value of my car if the manufacturer goes out of business?” That question has haunted car buyers trying to decide if the rebates and low interest rates are enough to over-come the potential depreciation of a product not around tomorrow. Dealers and Auto reps shudder to think that the words
“merger” or “bankruptcy” will further frighten potential customers away. Now, tomorrow may be FAR, FAR, away, for the demise of Ford, General Motors or Chrysler, yet reports indicate that GM and Ford are crying on the door-step of the US treasury with balance sheets suggesting insolvency is just a few months away.
Chrysler, privately held by Cerberus, has some cash, (which GM seriously entertained as the means to a
bailout for both companies in a merger) which could get them through the first quarter of next year. However, the real question you have to ask yourself is, should these companies survive? If survival is required, what car lines should be kept and which deserve the ax?
General Motors, Pontiac, Chevrolet, Buick, GMC truck, Lincoln, Mercury, I’m not sure? Chrysler, having dumped Plymouth and at one time paring duplicate platforms within CHrysler, Dodge and Jeep, recently unveiled the Nitro and Jeep Liberty, Durango and Aspen and still share the Town and Country/Grand Caravan box with Guess who?) Volkswagon! Stow ‘n Go, the only piece of imagination left to make a difference to consumers, and you can now have it with a german accent.
Without creative design, technological ingenuity and reasonable cost/value, the drive to buy a new car is un-inspiring. That leaves the customer who has to buy, overwhelmed with so many often redundant choices, he/she wants to run and hide. Which brings up the second issue of begging for money by the Big 3. Without money to loan on these $25,000 average car cost today, the consumer is left to beg for financing in a market where lines of credit have all but disappeared. If the FICO Auto score falls below 680, look out IRA or company 401k, this may be the only account left to draw on.
The only hope in all of this auto massacre is the eventual rise in value of the true American muscle cars, the soon to be obsolete gas hogs and seven passenger SUV, coming to an auto museum or car auction near you in the next fifty years. SO if you can justify the purchase and have a garage to store your “investment”, enjoy the ride in a 2009 Dodge Challenger, 2007 Chrysler Crossfire, 2009 Ford Saleen Mustang or 2009 Chevy Corvette Z06.
You may need it for your retirement.
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Sarah Lee writes on the automotive industry. She offers great no hassle deals and expert opinion on a variety of cars. 