Thinking about buying a Challenger, but what if Chrysler goes bankrupt May 1st?

To clear up a common misconception on here, neither GM nor Chrysler will "go under" if they file for bankruptcy. They will both continue to operate as usual. In fact, filing for bankruptcy and the reorganization that follows will probably be the best thing to happen to both.

That being said, do indeed expect a drop in resale value. How big is anyone's guess, but it will be imminent.

I'll take on your questions per your numbering:

1) They will probably stop making the Challenger if they file bankruptcy, and concentrate on more "mainstream", fuel-efficient vehicles. What is killing Chrysler is the fact that they have no vehicles to compare and compete with the Corollas/Accords/Civics of the world. Neons, Avengers, Calibers, etc... all junk with horrible resale value. In order for Chrysler to survive at all, they MUST rethink their prevalent strategy of the past 20 years, which was "sell as many gas-guzzling trucks and SUVs as possible, make do with the Neons and Calibers, and wow everyone with the Vipers and retro wannabes (Challengers and Chargers). The high-margin stuff was keeping them in business. When gas prices jumped, folks stopped buying the high-margin vehicles and started looking for the smaller fuel-efficient cars. Chrysler had no answer. --- That being said, Chrysler has been around for many decades... so parts will always be readily available. They won't just stop making parts for mass-produced vehicles.

2) Won't matter if you wait 'til 2010. Prices won't change. Another common fallacy on here is the theory that prices will drop on vehicles if the company making them files for bankruptcy. Not true. It still costs just as much to manufacture them as it did yesterday. None of the American makes in trouble are going to sacrifice profit for sales. They'll go under fast. Simple economics.

3) Benefits of buying right now on the Challenger? Depends on where you live. Where I am, there are plenty on the lot and they are actually discounting them to try and move them. In other parts of the country, they are selling before they hit the lot. If you're dead-set on the Challenger, I'd definitely shop all over your area for one.

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I wouldn't buy a Chrysler at all, if this question were posed to me. They are on shaky ground, and have been building mediocre vehicles for the past 25 years.

**EDIT -- LowGear -- It's not a "fact" until it actually happens. Until that time comes, it's all speculation. However, if they file bankruptcy, they still operate as usual until they either turn a profit or go under. Until that is decided, it's all speculation. I don't care if they merge with Microsoft, Chrysler has the least amount of chance of survival among the Big Three. We all know that. However, until they shut the doors, nobody knows what will happen to them.

I agree with you, if you're alluding to the theory that they are probably doomed. But we can't turn the page on them just yet.

The common misconception on this forum is that "bankruptcy = shutting the doors, laying off everyone, and dropping prices to near nothing". That is and will remain a misconception. That is what I was referring to. As I alluded to, whether or not they "go under" and shut the doors is just a guess.

I would hold off buying a Chrysler until you know if the company is going to survive. If you do buy one and the company goes under your car would be worth next to nothing not to mention the availability of parts. The government will cover your warranty but the lose of value would seriously hurt.

ElGrande. The federal auditors have said that Chrysler is not viable as a stand alone company and has to merge with Fiat to survive that's not a misconception that's a fact.