There’s been a great deal of speculation about whether GM and Chrysler will merge. Both companies are facing serious financial problems. I think both are building some quality vehicles but the mistakes of the past are causing enormous problems now. Although the vehicles are sound there is one thing you need to be wary of if you are shopping for a GM or Chrysler product, the elimination of some brands.
I recommend that if you are shopping for a car you need to avoid buying a Buick, Dodge, Pontiac, GMC and to a lesser degree Saab and Saturn because most if not all of these brands could be gone in the near future. And the problem if you buy a car from one of these brands and then they disappear is not getting the vehicle serviced but that the resale for that vehicle will plummet. That is why I suggest you do not shop those brands.
I think Chrysler is in big trouble. Recently they announced that they would be implementing further layoffs. I just do not see them being a viable auto company any longer. I am not an expert on finances, but I can not understand why GM would consider merging with Chrysler. GM has its own problems and I do not think Chrysler offers any solutions. I think the reason for this proposed merger would be creating a company so large the US Government could not allow them to go bankrupt.
In fact, although there is nothing wrong with Chrysler’s product I do not think this company can survive for very long. Years of poor management and product mistakes have led this company to death’s door and I can not see anything stopping their demise except a Government bailout.
I don’t have to tell you that there is so much information about our presidential candidates Senators McCain and Obama that no one could possibly read everything. One item I saw pertained to which of the candidates would you buy a car from. Seemed a silly thing, but I was interested and I read the article. Not surprisingly, the person who wrote the article was simply trying to make a case for the candidate they were supporting.
But what was even worse was the car buying information and techniques they tried to use such as, I could trust McCain more so that is why I would rather buy a car from him. Whether you agree with the person’s politics or not let me stress… you do not trust ANYONE in a car dealership. There job is to separate you from your money. Before EVER entering a car dealership you need to have all your facts and know how you are going to get a good price. Trust has nothing to do with it. This article is a ‘must miss’!
It seems everyone has a story about a bad time at a car dealership. The first time I ever attempted to buy a new car I went to a Toyota dealership when I was 21 years old. I went to this dealership because of an ad for an Avalon with a $99 a month payment. Once I arrived at the dealership I was told that one Avalon had been sold, but for $500 a month I could be put in one very similar. Well, I had no intention of paying that much money so I attempted to leave. The salesperson erroneously thought by grabbing my arm he could make a sale, he almost made a trip to the hospital because I was furious. Little did I know then, that I would spend decades working with car dealers, life can be funny. Well here’s an amusing story about someone’s recent visit to a car dealership, click here.
When you read the story the key problem this person encountered could easily have been diverted if they took control of the sales process, rather than be led around by the people working in the car dealership. Remember, you are the customer, they need you. Do not let anyone push you around or dictate how things are done.
Yes, it is a good time to buy a car. Whether you are shopping import or domestic, it is a good time to buy a car. It’s a good time to buy a car if you are looking for a luxury vehicle or just basic transportation. In fact, whether you’re shopping for a fuel efficient sub-compact or a giant gas-guzzler, it STILL is a good time to buy a car. So you might be asking, why is there so much negativity surrounding the auto industry?
Simple, although getting an auto loan is much easier than it has been over the last few weeks people are still very concerned about the economy and their own finances. For many Americans a car is a necessity. So if you happen to need a car now you can get a fantastic price. Plus if your credit and work history is sound you can get a great auto loan rate. And almost without exception every auto dealer has some outstanding product to offer you. Conversely, I think many people who do not need a new car are choosing to wait and see how this global economic mess plays out. So if you need a car you can get a great deal now!
Recent reports indicate that upwards of 3,800 car dealerships will close by the end of 2009. That’s approximately 1 in 5. From an economic standpoint you can argue that this shows that we have up to 20% more car dealerships than we need. I can not argue with this. The only problem is what happens to people who own a car and the dealership they bought it from goes out of business and there is not another dealer for that manufacturer anywhere close to the customer’s home? What is that person to do?
If your answer is go to an independent auto repair shop the only problem with that is some manufacturers do not disclose all the information a repair shop needs to fix their automobiles. That is why it is important for the Motor Vehicle Owners’ Right to Repair Act (HR 2694) needs to be passed. To learn more about this act visit: http://www.righttorepair.org/HR2694.pdf
This act is designed to prevent auto manufacturers from preventing independent repair shops from getting the information they need to safely repair cars. Right now, many auto manufacturers purposely prevent this information from being accessed by independent repair shops forcing customers to do business with their dealerships. This may pose a big problem in the future for a lot of people, that’s why I support this act.
A group of customers have finally won a 6 year legal fight against a car dealer that got so ugly that when the first judgment went against the dealership, they filed bankruptcy. It all started with a typical shady car dealer promotion. The dealership, John Chezik Honda near Kansas City MO had a promotion; they said that if you bought a service warranty contract and didn’t use it, they would give you your money back. A great deal, right? No, not so fast, remember this is a shady car dealer. To get your money back you had to buy another car!!!
Well, one family who attempted to get their refund would not accept the nonsense of needing to buy another car to get their service warranty contract refund. They refused to accept this type of deceit and this fight went to court. A class-action lawsuit developed and in May 2007 the plaintiffs won, sending Joe Chezik Honda into bankruptcy. The bankruptcy estate appealed the decision. Now, the Joe Chezik Honda has lost the appeal. And since this is a class-action law suite all Joe Chezik Honda customers who had previously bought the ‘refundable service warranty that really wasn’t refundable’ can now receive $1,200 from Joe Chezik Honda because the courts deemed the service warranty promotion SHADY!
I know that it is not an uncommon practice for people to sell their car on consignment at a local car dealership. In theory this is a win/win situation. The car dealer makes a commission for providing a sales team along with a location for the sale to occur on, and the seller gets a chance to receive a better price for their car.
Well, what happens when the car dealer is facing tough economic times? The seller, you, often gets stiffed. I am hearing stories more and more about innocent people who put their car on a dealer’s lot to be sold on consignment and when the car is sold the owner never gets paid. In my opinion, it is a bad idea to consider selling your car on a dealer’s lot on consignment. Simply put, the chance of losing your money or having to go to court to get your money is not worth the risk!
There’s a large growing problem right now in the auto business, car dealerships closing without notice. The combination of high gas prices, a year full of slow auto sales and this growing economic crisis have led to car dealerships closing without a warning. This is a sad situation and something you need to be aware of if you are buying or servicing your car at a dealership. Around the country there are people who drop off their car, leave a deposit for a car or any other type of typical auto dealer transaction only to find the doors locked when they return to finish their business. So you must protect yourself, be sure you have a receipt or some type of documentation when you leave your vehicle or money at a car dealership. By not doing so you could be out a lot of money!
Dealing with all the economic discussions flying around now makes it difficult to make heads or tails of everything. As we see financial institutions collapse one little known fact affects the US auto industry significantly, credit default swaps or CDWs. In recent years GM, Ford and Chrysler have all been some of the largest players in CDWs. These CDWs are derivatives and it is not someplace you would want to have your money tied up now, but that is exactly were GM and Ford are now buried deeply! In fact, because of these CDWs the financial authority, Standard & Poors has reported that both GM and Ford may face bankruptcy. Until this economic mess straightens itself out, you must be very careful!