FAQ Friday: What If Your Brand Goes Under? (And How Do You Feel About That?)
You'd have to live way off the grid to not know that Chrysler just declared bankruptcy, and that Pontiac, Saturn, Saab and Hummer are in their death throes. But where does it leave consumers?
As Phil Reed noted yesterday, and as we detailed in this article, the immediate impact on consumers should be limited (see the above links for details if you're still worried, but you needn't be unless you work for one of those companies or their dealerships).
Yes, it's a shock to realize that your car's brand may cease to exist -- or be reincarnated as something you don't recognize. But will that change the way you feel about your car?
Current owners of these brands would be wise to enjoy their cars without letting the constant barrage of news upset them. Use the same advice given in couples therapy: Try to remember what attracted you in the first place. You bought the car because you wanted it, right? Those essential qualities haven't changed.
Put another way: Say you're married, and your spouse's parents suddenly became insolvent, or they let their cousins from Italy move in and take over their house. You wouldn't take that out on your spouse, would you?
To extend the family metaphor even further, if your car is your "baby," does the failure of the parent company make you feel like your baby just came home from school with all "F"s?
We think you should enjoy your current Chrysler/Pontiac/Hummer/Saab/Saturn. Know that you'll still be able to get warranty service, and repairs after that.
And if you're pinching pennies, don't afraid to grab a screaming deal on a new vehicle from these brands... And feel free to thumb your nose at anyone who dares to look down on that.
Does a bankrupt brand bring out your inner bargain hunter, or does it change the way you feel about your current car?
- Posted by
- Joanne Helperin May 1, 2009, 11:00 AM
- Permalink
- Categories:
- Automotive Consumer News, Car Advice Articles, Chrysler, Dodge, FAQ Friday, Jeep, Pontiac, Saab, Saturn
- Technorati Tags:
- Bankrupt Brands, Chrysler, Hummer, Pontiac, Saab, Saturn
"...Say you're married, and your spouse's parents suddenly became insolvent, or they let their cousins from Italy move in and take over their house. You wouldn't take that out on your spouse, would you?"
You haven't been to WV, have you??
If I was buying a car to keep until the wheels fall off, I'd be very tempted to go bargain hunting. If I cared about resale value, I'd probably steer clear.
Also depends on the type of car. Not many people buy cars they love. They buy cars that they think are "good" cars. If I'm looking for an SRT something or a Hummer or some other dream car that I've always wanted and I will love regardless of what other people think, then yeah, go bargain hunting and brag about the awesome deal you got. But if I'm looking for a vanilla midsize sedan that won't give me any grief, I'll probably skip the Aura and G6 and go for the Malibu, even if I could have saved a little money up front.
If I'm looking for a car for my kid, it's bargain time. G5 or G6 or Astra below invoice, why the heck not. If I'm looking for myself and want to impress my friends, probably not going to get that G8 after all.
I don't consider it a huge issue, really. I would buy a car from a dying brand if it's what I wanted. I think the only thing that might stop me is concerns about resale, but if I planned on keeping the car for more than 5 or 6 years, which I probably would, then that would most likely not stop me.
Funny that you used a Dodge Journey to illustrate this post, as I was comparing crossovers recently and this one was the best value (resale notwithstanding).
I decided against purchasing one not because the brand may become defunct, but because I just do not trust Dodge's long-term reliability. Plus, there's nothing wrong with my current car, other than perhaps its size. The biggest bargain is keeping what you have...
With a lifetime warranty, how could you be concerned about long-term reliability?
Mopar424, it's a combination of my dad's poor experience with getting warranty work done on his Chrysler (and he worked at the dealership!), and some of the owner reviews at Edmunds.com complaining about recurring steering issues on the Journey.
I agree that the warranty terms are strong on paper, but it won't help if the dealers are not cooperative...
misterfusion, It's to the dealer's advantage to be cooperative. The get paid to do the warranty work. For most dealers, it's their major revenue stream. The situation with your father is inconsistent with dealer incentives.
mopar, The lifetime warranty is a great thing, but people fear problems even if they're covered under warranty.
Problems = inconvenience, lost time, etc., even if the fix is covered under warranty.
More to the point, if the dealers go under, what is the warranty worth?