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It's Official, Chrysler is on Life Support.......
07-25-2008, 01:21 PM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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It's Official, Chrysler is on Life Support.......
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Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
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07-25-2008, 01:24 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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Quote:
Originally Posted by FinanceDude
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They just have to find some other finance company willing to own Chryslers for too much money at the end of the leases. I guess they got tired of losing 2 to 5K a copy at the auction. Look out below!
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07-25-2008, 01:28 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by 73ss454
They just have to find some other finance company willing to own Chryslers for too much money at the end of the leases. I guess they got tired of losing 2 to 5K a copy at the auction. Look out below!
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I guess the $2.99 a gallon thing didn't turn things around........
Isn't it now standard practice for Chrysler Financial to buy a gap insurance policy on new car leases to mitigate the loss at the auctions? The main reason GE Capital got OUT of leasing was the bloodbath they took at the car auctions on lease returns.................
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-25-2008, 01:31 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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Gap insurance is only good if the car is stolen. I would guess they would lose less $ if the car was stolen rather than taking them to the auction.
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07-25-2008, 01:31 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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It's hard to make money leasing vehicles that have horrific depreciation.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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07-25-2008, 01:33 PM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by ziggy29
It's hard to make money leasing vehicles that have horrific depreciation.
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GM figured it out, just limit the customer to 700 miles a month (when most folks drive 1000-1250 miles a month), and make them build in mileage to limit the damage.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-25-2008, 01:33 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Posts: 7,746
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Who would intentionally steal a Chrysler??
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07-25-2008, 01:34 PM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
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Quote:
Originally Posted by FUEGO
Who would intentionally steal a Chrysler??
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I'll bet Walter P. is rolling around in his grave now.............
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-25-2008, 01:34 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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Yeah, they figured it out. BK next stop.
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07-25-2008, 01:36 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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FD, you've been out of the business too long. What does Gap ins. have to do with losing money at an auction?
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07-25-2008, 01:56 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by 73ss454
FD, you've been out of the business too long. What does Gap ins. have to do with losing money at an auction?
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Perhaps my knowledgeable sources in the car industry are losing their marbles. I am not talking about the gap insurance that folks buy to make up the "gap" between the value they owe and the ACV in the event of collision damage.
A factory guy I know (reliable source) that most automaker's financial arms in effect reinsure their leased vehicles with a type of wholesale gap insurance against large vehicle losses. Of course, there are limits to this coverage, there is a cost to get it, and the reinsurer has the option to cancel a contract to offer it if market conditions sour.
i doubt he was lying to me, it seem plausible..........:confused:
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-25-2008, 01:57 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by 73ss454
Yeah, they figured it out. BK next stop.
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Maybe GM will be able to buy up the profitable "pieces" from a Ford and Chrysler implosion...........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-25-2008, 01:57 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by FinanceDude
Perhaps my knowledgeable sources in the car industry are losing their marbles. I am not talking about the gap insurance that folks buy to make up the "gap" between the value they owe and the ACV in the event of collision damage.
A factory guy I know (reliable source) that most automaker's financial arms in effect reinsure their leased vehicles with a type of wholesale gap insurance against large vehicle losses. Of course, there are limits to this coverage, there is a cost to get it, and the reinsurer has the option to cancel a contract to offer it if market conditions sour.
i doubt he was lying to me, it seem plausible..........:confused:
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Your source is correct that this is done. I bet that now that the insurers have gotten spanked that the policies will be a lot more expensive and harder to get.
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"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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07-25-2008, 01:58 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by brewer12345
Your source is correct that this is done. I bet that now that the insurers have gotten spanked that the policies will be a lot more expensive and harder to get.
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Or be limited to Honda, Toyota, and Nissan vehicles...........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-25-2008, 01:59 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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Quote:
Originally Posted by FinanceDude
Perhaps my knowledgeable sources in the car industry are losing their marbles. I am not talking about the gap insurance that folks buy to make up the "gap" between the value they owe and the ACV in the event of collision damage.
A factory guy I know (reliable source) that most automaker's financial arms in effect reinsure their leased vehicles with a type of wholesale gap insurance against large vehicle losses. Of course, there are limits to this coverage, there is a cost to get it, and the reinsurer has the option to cancel a contract to offer it if market conditions sour.
i doubt he was lying to me, it seem plausible..........:confused:
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If in fact there's an ins. co. that's willing to guarantee loses on Chrysler vehicles at auction, well, they must be crazy. Can you imagine a Chrysler going through an auction at a profit. Maybe Chrysler can get them to do the leasing. (heh)
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07-25-2008, 01:59 PM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
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BTW, GE Capital exited the leasing business (new and used) quickly after a $230 million dollar loss in ONE QUARTER several years ago...........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-25-2008, 02:00 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by 73ss454
If in fact there's an ins. co. that's willing to guarantee loses on Chrysler vehicles at auction, well, they must be crazy. Can you imagine a Chrysler going through an auction at a profit. Maybe Chrysler can get them to do the leasing. (heh)
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They look at the spread between perceived resale and such, and price the insurance policy accordingly. Seems risky to me, but I'll be the premiums are high enough for a decent ROI,at least on the "right" vehicles.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-25-2008, 02:03 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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They are no doubt living on the edge.
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07-25-2008, 02:04 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by 73ss454
They are no doubt living on the edge.
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Chrysler, the reinsurers, or both??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-25-2008, 02:05 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,698
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I think Chrysler may have the edge here, but it's close.
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