Terminated Chrysler Dealers Offer Bargains, Earn Slim Profits, Edmunds.com Reports
By Michelle Krebs May 22, 2009SANTA MONICA, California -- Chrysler dealerships, whose franchise agreements have been terminated by the automaker effective June 9, are making significantly less profit on each vehicle sale, in large part, because they are offering the best deals to customers, Edmunds.com's analysis shows.
Profit margins for ill-fated Dodge dealerships are currently earning about $825 less per car, while closing Jeep dealerships are earning approximately $1,200 less per car.
In April, prior to the announcement of the 789 dealers whose franchise agreements would be terminated, dealerships that eventually received Chrysler's letter were earning about $825 less per vehicle than other dealerships. Now that difference has climbed approximately 300 percent to approximately $2,700 per vehicle.
"Any consumer seeking to take advantage of the great deals available should act fast, since there isn't much inventory to be had at the dealerships that are closing," advised Edmunds.com Analyst Jessica Caldwell.
Average Profit Margin Differential
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Dodge |
Jeep |
Chrysler |
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Jan-09 |
$830 |
$710 |
$610 |
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Feb-09 |
$1,844 |
$1,112 |
$115 |
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Mar-09 |
$725 |
$311 |
$679 |
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Apr-09 |
$888 |
$354 |
$828 |
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May-09 |
$823 |
$1,205 |
$2,672 |
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Source: Edmunds.com
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