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Dealer Cuts Mean Deals on Chrysler, GM Cars

Closing dealership networks have just weeks to move massive inventory

By the Associated Press

Posted May 18, 2009 9:32 AM CDT

(AP) – At 789 Chrysler lots across America sit 44,000 potential bargains, cars and trucks that are stuck between shellshocked dealers and a troubled company that no longer wants their services. The dealers have just a few weeks to sell the Chryslers, Dodges, and Jeeps or risk losing thousands of dollars on each—giving people who want a car on the cheap a serious chance for a deal.

Chrysler doesn't have the money to buy back vehicles left on the lots, says a company spokesman, but the company has made a deal to float loans to dealers that Chrysler plans to keep, to enable them to buy some of the unsold inventory of the 789 dealers that have been cut loose. General Motors Friday also notified 1,100 dealers that it no longer wants them—putting another 65,000 vehicles in play.

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[Quotes (1)]

Cars are parked at the Terry Morris Chrysler Jeep dealership in Burnt Hills, N.Y. Dealers have just a few weeks to sell the Chryslers, Dodges and Jeeps or risk losing thousands of dollars on them. (Mike Groll)

Dealers have just a few weeks to sell the Chryslers, Dodges and Jeeps or risk losing thousands of dollars on them, giving people who want a car on the cheap a serious chance for a deal. (Damian Dovarganes)

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You've got some very good negotiating power. (Dealers are) really looking to shift this inventory. It's just stacking up all around them. - Dave Champion, director of automobile testing for Consumer Reports

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Dealer Cuts Mean Deals on Chrysler, GM Cars