Chrysler tightens dealer credit terms...

[RMBSRT]

If there are any 2006 or early 2008's on dealer lots, they will want to move them quick. Chrysler is going to start penalizing delaers for letting these units sit.

Dealers are getting squeezed even more...

Chrysler to Halt Car Production at Plants; Charge Dealers Fees - WSJ.com

 

[Flexx91]

Wonder if this applies to all Chrysler vehicles since some dealers (and correct me if I'm wrong) were somewhat forced to assume CAAP's aging inventory.

 

[Kala]

For SOME dealers, its good they are getting a kick in the pants...

There was a dealer near me in Fillmore CA, they had a new SRT Challenger sitting out front with a markup sticker next to the window sticker. Nothing added to the car, just a "Market Adjustment" for the true street value. That car sat out there every day, unsold. Until the dealer folded, trucks & jeeps were locked up in the service lot for a long time. Before being moved on to other locations... It seems to me, they should have sold the dang car, rather than go under..

Same thing happened to a couple of people I know.
One went into a Hummer dealer, during Employee Pricing, was told that they had only one H3 that was at Employee Pricing... It was a repaint, "Special Edition" Any other H3 @ $1k off MSRP... Dealer wouldn't budge, that was during $4 per gal gas too...

Another had the same problem trying to get a Ford truck at the advertised price... He went to several dealers before getting the deal he was looking for...

 

[redtanrt10]

If there are any 2006 or early 2008's on dealer lots, they will want to move them quick. Chrysler is going to start penalizing delaers for letting these units sit.

Dealers are getting squeezed even more...

Chrysler to Halt Car Production at Plants; Charge Dealers Fees - WSJ.com

Chrysler Financial is responsible, not Chrysler Motors. The fee's are nomimal the real issue is paying down the inventory. For example, if you had a viper with an $80K invoice, the dealer would need pay it down by $800 monthly. When the dealer sells it the dealer recoups the cash. The paydown will severly hurt cash flow for many dealers. Dealers are trying to move away from Chrysler financial as well as reduce new purchases from Chrysler.

 

[RMBSRT]

Sorry ...but that is wrong.

If you read the story, they have changed the game on the dealers. There are now penalties for older inventory.

the artcle says...

"Starting Jan. 1, the struggling auto maker's financing arm will impose large fees on dealers holding new cars and trucks that are unsold after more than 360 days, and will require the payment of all remaining balances on any used vehicles unsold after more than six months.

Some dealerships could incur charges totaling hundreds of thousands of dollars over the course of 2009 at a time when many are already losing money and battling to stay in business, according to dealers familiar with the plans.
Chrysler Financial acknowledged it has changed the terms on aging inventory. It said it is working with dealers "to ensure we minimize the impact."

This will take more money out of the dealers pockets...

This is

 

[gb66gth]

Ya know what, screw the dealers! These are the same guys who have put mark-ups over MSRP on the cars we love, for years! ....like they're not going to make a very nice profit at MSRP anyway. I hope they choke on their inventories until they get it right and reduce the price of the cars or go out of business. Any car enthusiasts get hot about these guys get greedy about. It's not just Chrysler, look at Nissan, they're still selling GTR's over MSRP, and don't even get me started on Ford and the GT, ugh!

 

[redtanrt10]

RMBSRT, this article is unclear about penalty fee's and principle curtailments, calling both "charges." The highest monthly fee is $25.00 per car. The real issue is the curtailments (principle reduction) which will hurt cash flow forcing dealers to reduce the balance on their unsold vehicles in inventory. This isn't a new news, they told the dealers over 90 days ago this was coming. I do know what I'm talking about, I run a captive finance company for an asian manufacturer, and, I'm an ex-executive at chrysler financial.

 

[Boxer12]

I feel bad and was going to take a Turkey over to my local Dodge dealer, but I can't get into his gated community.