Chrysler Resale Values Increase
The increasing resale value of Chrysler vehicles comes as a spot of good news after the automaker emerged from bankruptcy only a month ago, and it’s happened without Chrysler slashing prices.
Chrysler managed to get its inventory down from a 114-day supply when it entered bankruptcy to just a 71-day supply at the end of June (an ideal number is about 60). Detroit inventory lots where Chrysler stores its unsold cars are emptying out for the first time in years, and the company is no longer bullying dealers into taking more cars than they can sell.
As a result, the company’s prices have stabilized at an average transaction price of $25,200. With 25% fewer dealers, the average price will likely grow, given the dealer network — which in some cases was competing against itself — has been cut into leaner form.
This has led Automotive Leasing Guide to raise the resale value (a vehicle’s estimated value after completing a lease) for Chrysler vehicles. ALG increased the residual pricing for Chrysler vehicles from 28.8% in June to 32.5% of original sale price for leases ending in July or August. Dodge residuals bumped up from 31.3% to 34.8%, while Jeep bounced from 32.4% to 37.4%.
Considering Chrysler stopped leasing altogether last year because it cost the company so much money, this is welcome news. Still, don’t expect Chrysler to get back to leasing any time soon.
Even so, it seems Chrysler’s decisions to stop manufacturing for two months and slim down its dealer networks has had one very positive result.
Chrysler Resale Value Increases (Detroit Free Press)
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Proof that resale value really has nothing to do with the actual car.
broq
well, maybe not "nothing" but it is not all about the car. Some of the factors that affect resale value seem trivial to me- it should be more about the actual car.
broq
why should the resale value of chrysler cars increase when these cars still have sub-par build quality and dependability? resale should increase with an increase in the build quality and dependability of the vehicle.
Oh, so instead of one guy in an entire city who, when stupid drunk, is willing to date date your obese ugly sister, now there are two.
so if you have two or more clunkers at your house you cannot trade both of them for one car. The program is for one per
person.
Jimhenry
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www.cashforclunkersfacts.info
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This "article" is so ridiculous that I wonder how much Chrysler err I mean Fiat paid for it. Resale value is determined by two main factors, desirability and reliability. The overwhelming majority of Chrysler vehicles are neither.
If you've got a problem with how ALG conducts their business, the entire automotive financial industry for that matter, then take it up with them. They know THEIR business, you don't.