Chrysler has been operating under Chapter 11 bankruptcy protection for less than two weeks now but the automaker’s resale values have already taken a tumble. Since Chrysler’s April 30th bankruptcy filing, the automaker has seen its vehicle resale values tumble by 6 percent.
According to a new report by Automotive Leasing Guide, Chrysler’s three brands – Chrysler, Dodge and Jeep – have seen a 6 percent drop in residual values across the board. Before Chrysler’s Chapter 11 filing, three-year old Chrysler, Dodge and Jeep vehicles held 34.8 percent, 37.3 percent and 38.4 percent, respectively, of their original sale price. However, since the April 30th filing, three-year old Chrysler, Dodge and Jeep vehicles have seen their values slide to just 28.8 percent, 31.2 percent and 32.4 percent of their original sale price, according to the Detroit Free Press.
In comparison, three-year old Toyota s retain 45.5 percent of their original price.
Needless to say, all Chrysler vehicles are being affected by the company’s bankruptcy filing, not just vehicles 36-months old. As a result, Chrysler-brand trade-in values are down, resulting in many consumers having to cough up a larger down payment for a new vehicle.
Chrysler hopes to emerge from bankruptcy by month’s end, but it remains to be seen how far residuals will drop before then.
