Chrysler residuals see marked improvement after speedy bankruptcy exit
07/09/2009, 4:06 PM
By Drew Johnson
Thanks to a speedy exit from Chapter 11 bankruptcy, Chrysler’s residual values have rebounded faster than expected. Chrysler’s resale values dipped 6 percent after the Michigan automaker filed for bankruptcy in May, but the company’s residuals have since rebounded by as much as 5 percent.
The Automotive Lease Guide announced on Thursday that it is increasing the residual values for all Chrysler brands – Chrysler, Dodge and Jeep – for the July-August period. According to ALG, the 36-month residual on Chrysler vehicles is up to 32.5 percent with the residual on Dodge-branded vehicles now up to 34.8 percent. Jeep has seen the largest jump in residual values, checking in with a value of 37.4 percent.
Although those values still aren’t up to pre-bankruptcy levels, they do show a marked improvement from just a few weeks ago. Just two weeks after filing for bankruptcy, Chrysler, Dodge and Jeep’s residuals were at 28.8 percent, 31.2 percent and 32.4 percent, respectively.
“The bankruptcy proceedings were pushed through with unprecedented speed, which likely mitigated the impact on consumer perceptions of the brand,” said ALG in a report. “Nearly all of the at-risk inventory at the 789 dealers losing their franchise have either been sold or reallocated to surviving dealers.”
The news should be encouraging for General Motors as it prepares to exit Chapter 11 bankruptcy in the next few days.
07/09, 4:14 PM
posted by:
idrinorbarsaku
which is useless because more people are still not going to buy them!
07/09, 4:55 PM
posted by:
JakeK66
What are the risiduals on cars like the Accord or Passat?
07/09, 5:05 PM
posted by:
johnnycanuck
Way higher I’m sure Jake, but it’s a start.
07/09, 5:24 PM
posted by:
Borat
It is understandable: we are nation of collectors. AMC Pacer in excellent shape will fetch as much as when it was new about $3 grand. People are stocking up on cars that will disappear soon. It is like buying Cord 75 years ago – you can’t loose.
07/09, 5:51 PM
posted by:
leftwingagenda
i have no evidence for this, but i doubt the classic car market is going to be that great for the cars we grew up with as kids as they become “antiques” and whatnot…i just can’t get excited about old plastic cars…i miss my first honda prelude, but a million years from now i still wouldn’t really say “wow, those lines, that blue plastic, that was craftsmanship”…i dunno…maybe i’m just anti-plastic biased when it comes to classic cars…(a little plastic is ok, but ’80s level plastic? not so much)…
07/09, 7:00 PM
posted by:
Borat
I was sarcastic.
07/09, 7:30 PM
posted by:
2WheeledSpeed
I often wonder about that leftwing… What WILL be a collectors item 40, 50, 60 years down the road?
07/09, 8:37 PM
posted by:
GM An American Embarrassment
id rather drive a dodge than a chevy any day
07/09, 9:19 PM
posted by:
carstuff
vettes, vipers, mustangs, camaros,
07/09, 10:47 PM
posted by:
aggie531
carstuff dont forget 2009 pontiac G8
accord lx 51%
passat komfort 39%
07/11, 5:12 PM
posted by:
jackjimturkey
Are these “residuals” something other than theoretical?
By Drew Johnson
JakeK66: “What are the risiduals on cars like the Accord …”
Not what peole are actually willing to pay for them. So Sayeth Spreen honda.
American Embarrassment: I’d rather drive a Viper than a Chevette ….