What is your opinion on buying a car from a brand that is bankrupt and/or being sold off?
This question was sent to me through the suggestion box, and I imagine it is one that's on so many minds right now. Just today, I was driving past a Jeep dealership near my house and the only thing left on the lot was pre-owned cars and a big "FOR SALE/LEASE" sign. This was a dealership that I thought was doing well, but I guess it lost the franchise.
There are advantages and disadvantages of buying from a brand that is suffering such as Chrysler and GM. The main advantage is the price you'll pay, the disadvantage is the price you'll pay. Though I haven't seen anything published on residual values for 2009 Chrysler vehicles, I can only imagine that resale value will fall through the floor in a short amount of time. The car you just purchased at a third off the manufacture's suggested retail price, will probably be worth 2/3 less in a couple years. (If you do the math, I just told you the car will be worthless)
If I were in the market to buy, and I really wanted to buy new, I would go to a brand that a. has a strong reputation, b. isn't in our recently out of bankruptcy court, and c. will have a service department for my warranty needs.
But then again, those Chrysler products never had any warranty issues, right?