Should you buy a new Chrysler today or wait for lower prices?
— -- Go ahead, buy that Chrysler.
That's the consensus of analysts, consumer advisers and consultants, who noted Thursday that Chrysler now is like a government bond, backed by the "full faith and credit of the United States."
The government says it wants Chrysler to emerge from Chapter 11 bankruptcy reorganization quickly and undamaged. The government says it'll stand behind the warranties on Chrysler's Jeep, Dodge and Chrysler-brand vehicles.
The government's also lending the automaker money to keep going until it emerges and moves ahead in a partnership with Italy's Fiat that will provide small cars for Chrysler to sell in the U.S.
"The consumer who might be considering a Chrysler-brand vehicle should be reassured by this news. Not only does this stave off what had been the possible liquidation of Chrysler, it also puts the federal government solidly behind the automaker," says Jack Nerad, chief auto-market analyst at auto-shopping guides Kelley Blue Book and kbb.com
"Business as usual" at dealerships, promises Chuck Eddy, who represents the 3,200 Chrysler, Jeep and Dodge dealers on the National Automobile Dealers Association's dealer council.
"As part of the prepackage (Chapter 11 arrangement), we get treated as if there's not a break in the business. Warranty payments, incentive payments — every Monday, as usual. They're shipping ... whatever we've paid for," says Eddy, who runs Bob & Chuck Eddy Chrysler Dodge Jeep outside Youngstown, Ohio.
Perhaps surprising, don't look for giveaway prices. "Chrysler will not change its pricing and incentive structure radically," says Nerad. No need. "With the government as its source of funds, it is actually less in need of immediate cash flow than it was as recently as" Tuesday, he says.
But Chrysler's need to shed many dealers as part of the Chapter 11 reorganization will make it harder over time to find a dealer to sell and service cars.
It also could flood the market with inventories of new cars from the discontinued dealerships. It'd be better to buy a Chrysler after that happens, because the glut will depress prices temporarily.
