Behind The Wheel
- Can Ford Make a Smooth Transition in Management?
- US Auto Industry Made Stronger by Increase in Exports
- Will Super Bowl Ad Buzz Generate Sales Buzz?
- Boeing Inspects 787 Dreamliner for Possible Repairs
- Will Toyota Rebound to #1 in 2012?
- What Fueled Record January Auto Sales?
- The Three Year ‘Pinch’ Is Helping New Car Sales
- Ford Earnings Disappoint, Causing New Concerns and Questions for Investors
- Are Ford's Best Days Behind Them?
- General Motors Struggles to Break Out From Uncle Sam's Shadow
MOST SHARED
- Warren Buffett: Stocks Will Outperform Gold and Bonds .. and They're Safer 'By Far'
- Steelers' Antonio Brown Spends Super Bowl Week with Twitter Fan Turned BFF
- Investor Optimism At Highest In One Year: Survey
- Markets Get Greece Deal, So Where's the Big Rally?
- How to Get Your Name on the Bathroom Wall 4-EVER
- Indonesia Unexpectedly Cuts Rate to Seek Growth
- Kodak to Stop Making Cameras to Cut Costs
- Robo-Deal Is All About Lowering Mortgage Principal
- The Euro Still Has Room to Rise: Strategist
- Greeks Burn German Flags: Do They Have a Point?
- Victor Cruz ‘Understands’ Gisele's Super Bowl Frustrations
- Tamminen: The United States of India
- Unusual Volume: Taleo Jumps After Oracle's $1.9 Billion Offer
- Warren Buffett: Stocks Will Outperform Gold and Bonds .. and They're Safer 'By Far'
- So Now You Can’t Give Microsoft Away?
- Robo-Deal Is All About Lowering Mortgage Principal
- Groupon Needs More Disclosure: Analyst
- CEO to CEO: Taking a Job at a Startup vs. a Public Company
- Farr: Money, Jobs and Politics — We're Still in a State of Risk
- Markets Finally Get Greek Deal —So Where's the Rally?
- 'Mortgage Deal from Hell' Hurts Sound Borrowers: Bove
- Fidelity: 401(k) Balances Little Changed Over 2011
- Are Young American Workers a 'Lost Generation'?
- Westminster’s Most Successful Dog Breeds
- Greek Political Leaders Agree On Austerity Reforms
- Robo-Deal Is All About Lowering Mortgage Principal
- Fed Fines Banks $766 Million Over Mortgage Practices
- Spent Keurig K-Cups Filling Up US Landfills
RSS FEED
Residual Values Hold Up Through Bankruptcy
Text Size 
When you have a car company going through the great unknown of bankruptcy, you take the good news when it pops up. For Chrysler, the good news is the way residual values for new Chrysler vehicles are not only holding up, but actually rebounding a bit from when the company first filed for bankruptcy. It is the kind of proof the supports the arguments from the White House and elsewhere that bankruptcy would help, not hurt, Chrysler and GM.
According to Automotive Lease Guide, the residual values for Chrysler vehicles are all up 3.5 - 5 % for July and August compared to May and June.
Specifically, here are the residual values for each brand and how much they have increased:
Remember, the residual value is what percentage of the sticker price a new vehicle is expected to have in three years. Predictions are based on a number of factors, including the used vehicle market, how big the incentives are for new models currently in showrooms, and of course how the brand itself is doing with new car buyers.
That last point is one that many thought would sink Chrysler when it filed for bankruptcy.
The fear was prospective buyers would avoid Chrysler, Dodge and Jeep out of fear the parent company wouldn't honor warranties, etc.
President Obama took that fear off the table when he said, "I stand with Chrysler" and pledged the Federal government would honor all warranties. Since then, Chrysler sales have not plunged as many, including me, predicted long ago when we discussed the problem of Chrysler going bankrupt.
While rebounding residual values is encouraging, it doesn't mean Chrysler is out of the woods. It still has a long ways to go to get back on track. But, for the moment, it's clear the worst looks to have passed, and Chrysler vehicles should hold their value compared to their level before bankruptcy.
_____________________________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- General Motors [GMGMQ
Loading...
()
]
- Toyota Motor [TM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
_____________________________________
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes
