GM & Chrysler Bankruptcies Not Affecting Used Market, Yet

Chrysler’s bankruptcy has yet to have a significant impact on used values. In May, Chrysler vehicles did not sustain increased volatility as a result of their bankruptcy filing at the end of April, according to Kelley Blue Book’s June 2009 Market Report. In fact, Chrysler values were flat overall, with cars and crossovers dropping 1 percent and 1.5 percent, respectively. SUVs actually appreciated by an average of 0.7 percent. Most surprisingly, the Chrysler Town & Country and Dodge Caravan minivans increased aggressively, appreciating 2.8 and 4.6 percent, respectively.

GM’s announced bankruptcy filing on June 1 is expected to produce a similar market response as the Chrysler filing. Even as the threat of a GM bankruptcy loomed during May, used values remained fairly stable. Overall, GM values dropped 0.6 percent, although SUV and van values appreciated 0.6 and 1.2 percent respectively.

The effect of shuttering dealerships and liquidating unsold inventory remains to be seen, but a dramatic increase at auction of new GM and Chrysler vehicles could put significant downward pressure on late model values. However, the long-term strength of each brand’s used values depends largely on post-bankruptcy actions and consumer perceptions.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Who Controls Your Vehicles’ Data?

In the name of security, an automaker’s alliance is advocating denial of third-party access to the OBD-II port. Is this going too far?

Job Finder: Access Top Talent. Fill Key Positions.

>