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Some Florida Chrysler dealers cutting 2008 model prices in halfMay 20, 2009 (Sun Sentinel - McClatchy-Tribune Information Services via COMTEX) -- If ever there was a time to buy a Chrysler, it's now -- before June 9, when nearly one-fourth of its dealers are targeted to close. AutoNation, the country's largest retailer, is among companies offering deep discounts at Chrysler dealerships set to shut, with up to 50 percent off some 2008 models, President Mike Maroone said Wednesday. In South Florida, special deals now are available at its stores closing in Coconut Creek and Miami and at a Pembroke Pines outlet that will absorb excess Chrysler vehicles. "Our intention is to quickly liquidate our inventory," at Chrysler dealerships closing, said Maroone, estimating stock at affected South Florida stores at 350 to 400 cars and trucks. Chrysler has been offering ample rebates and buyer perks for months already, even before it entered bankruptcy in late April and notified 789 dealers last week that they will no longer be part of its network after June 9. Rebates and other perks on some trucks now top $8,000. "We're offering the largest incentive package I've seen in 20 years in the industry," said Jim Arrigo, who runs Chrysler Dodge Jeep dealerships in Tamarac and West Palm Beach that will remain in business after June 9. "There's never been a better time to buy." But for dealers set to close, the big question is what happens when Chrysler cuts them off next month and no longer offers them those incentives. Carlos Planas, who owns Tamiami Chrysler Jeep Dodge in Miami, fears he'll be stuck with hundreds of vehicles no longer eligible for Chrysler perks, so he's selling all he can before June 9 at the best price he can rake in. "I don't mind losing $1,000 on each car over and above the discounts that Chrysler is giving, because we won't have any discounts in a few weeks," said Planas, estimating his inventory at 410 vehicles. "Better a bird in the hand than one flying." Not all dealers targeted to close are being extra generous. At Monarch Dodge in Lauderdale Lakes, owner Mark Hobos said deals remain the same as they were last week. He's fighting Chrysler's move to shut him. And even if bankruptcy court orders him out, he's hopeful that other remaining dealers likely will buy up his merchandise. AutoNation said deeper discounts at select Chrysler stores won't hurt finances, because the seven Chrysler dealers it is closing nationwide represent just 1 percent of revenue and less than 1 percent of operating income. Analysts do not expect similar discounts on GM vehicles, even as that cash-strapped carmaker seeks to end franchises with more than 1,000 U.S. dealers to close by October next year. GM is giving dealers time to appeal the decision and sell off inventory before a potential closure in what AutoNation's Maroone calls a "much more orderly process." Doreen Hemlock can be reached at [email protected] or 305-810-5009. To see more of the Sun Sentinel or to subscribe to the newspaper, go to http://www.sun-sentinel.com/. Copyright (c) 2009, Sun Sentinel, Fort Lauderdale, Fla. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |