We've had some questions from you about our slide show of empty car dealers -- mainly about what happened to all the cars that were left on the lot after Chrysler's June 9 deadline for dealers to shut down.
I called up Howard Sellz, who owned Big Valley Chrysler Jeep Dodge in Van Nuys, Calif., until it closed down with 140 cars left on the lot. He said that dealers had two options: some chose to sell the cars after the deadline, without Chrysler warranties or benefits. Others, he said, took up Chrysler's offer to redistribute the cars to surviving dealerships to be sold.
"I've been here 44 years, to have an empty lot is the most depressing thing I've ever gone through in my life," he said.
Sending your cars to surviving dealership comes with some fees, he said.
Sellz cited a $350 transportation fee on '09 models, and said Chrysler also deducted the advertising fees from the cost of the car. "If the invoice for a car is $25,000, advertising costs you $900 to $1,000," he said.
On top of that, Chrysler won't take back a car if it has more than 125 miles on it according to Kevin Mullins, the general manager at Wilson Dodge in Flowood, Miss. Mullins says that after a few test drives, it's very possible for many unsold cars to wrack up that much mileage.
categories: Economic Scene
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