Chrysler Dealers Face Foreclosure as Financiers Bicker

Despite the sunny outlook for Chrysler, at least 40 Chrysler, Jeep, and Dodge dealerships face foreclosure due to a continued conflict between Chrysler Financial and GMAC. According to the Detroit Free Press  GMAC is expected to take over wholesale financing operations from Chrysler Financial. This transition could be the end for many dealerships across the country.

In the past Chrysler Financial accepted the value of the dealerships inventory as collateral for loans. Now GMAC is telling dealers this isn’t enough. Many of these dealerships are looking to draw on their mortgages, however Chrysler Financial (the holder of some of their mortgages) refuses to relinquish its stake in these properties.

The dealerships are unable to turn to commercial banks for assistance either. According to Dick Huvaere, a dealer from Richmond, Michigan, "today, there's not a bank on the planet that will loan a dime to any Chrysler or GM dealer."

A Chrysler spokesperson said they are not concerned that critical dealerships are in danger. They suggest consolidation of Chrysler, Dodge and Jeep sales into one dealership. Chrysler dealer’s prior optimism regarding the company turn-around has now been smothered by worries of foreclosure.

Companies Launch Car Incentives to Replace Leases

Several companies are launching financial car incentives to compensate the loss of leasing as a viable sales tool.

The moves come after all three Detroit auto makers changed their leasing programs in recent days. According to Bloomberg News Chrysler has stopped offering leases through its Chrysler Financial unit, while General Motors, Ford Motor Co. and BMW announced plans to tighten the availability of leasing.

According to the Saint Louis Post Dispatch Chrysler on Friday announced several finance deals "to make buying as affordable as renting," the automaker said in a statement. The deals include 72-month financing on a wider range of vehicles and $2,000 cash-back on certain purchases financed by Chrysler Financial.

And CNN reported that Chrysler not only has extended discounted six-year financing to more products, but is offering $750 to lease customers that can be used toward the purchase of a new vehicle. The company is also offering 40 percent off select Dodge Ram pickups as part of its August incentive program for dealers and BMW several weeks ago began offering buyers 0.9 percent loans of as long as five years Bloomberg News reported.

GM meanwhile is offering its customers $1,000 off various V-6-powered versions of the Chevrolet Malibu sedan and the Pontiac G8 sedan that hit showrooms this spring. According to Dow Jones Newswires the auto maker will continue to offer six years of free financing on its large SUVs and up to $8,000 off a GMC Envoy or Chevy Trailblazer.

Buyers also can get a deal on the Corvette sports car, up to 48 months free financing. Even though GM has offered zero-interest loans on the iconic Chevy before, the company’s never done it for such a long time.

So even though leasing is getting tighter or eliminated not everything is looking bleak for those looking to purchase a new car, just try to find the incentives that best adjust to your budget before heading to the dealership.

Dodge still trying to change buyer's minds about Durango

It's really too bad that the Dodge Durango got such a bad rap so early on in its life. While Dodge has made very few design mistakes in the last 10 years, they readily admit they boo-boo'ed on the Durango's second generation design in 2004. And unfortunately, last year's exterior makeover of this workhorse still hasn't seemed to make buyers forget.

The jury is also still out as far as Dodge buyer opinion on the Durango. Many buyers have obviously never forgotten that the original trucks were recalled almost a dozen times in two years for a host of reasons.

It's too bad too, because the Durango is a powerful vehicle with the trademark V8 engines which Dodge has been making a living out of over the years. Plus, it has a lot of room inside for all the things SUV'ers like to throw in back and hit the road with.

While the re-designed Durango looks a lot better than the one that hit showrooms in '04, its continued battles with earlier stigmas have forced Dodge to start touting a few new wrinkles for '08; like a back-up camera and reclining second row seats to stave off the stiff competition that the Chevrolet Equinox, Nissan Pathfinder and Hyundai Santa Fe are sure to provide.

The Dodge Ram 1500: The Boldest-Looking Full-Size Pickup

It's hard to find a more aggressive-looking full-size truck on the market. And while it's always nice to have cars cower and pull aside to let you pass, some of the Ram's bite is only skin-deep. There are other large trucks out there that surpass the Dodge Ram 1500 in terms of interior quality, towing capacity and power offered with their base engines.

If you opt for a higher level SLT, you get a new 310hp V8 added this year which gives the Ram some serious punch without negatively (in fact slightly improving) gas mileage. So, that's nice. Also if you want one of the largest cabs on the market, the Mega Cab has tons of space, even enough to allow the rear seats to recline. But those options may or may not be enough to distract you from the lower-grade plastics that abound inside. Another detractor is reliability, the Ram 1500 has been recalled 7 times in the last 2 years. The ride is pretty agile and comfortable overall, but can be prone to bumps in certain circumstances.

If you favor quality over macho-looks, you may want to look into the Ford F-150 or the Toyota Tundra.

The Dodge Magnum - A Distinctive Wagon

Dodge has made quite a few surface-level updates this year to keep the Dodge Magnum wagon current. The added soft materials in the interior and the more aggressive exterior touches are welcome. All in all, nothing major has been revamped. But even though Chrysler is considering discontinuing the Dodge Magnum after this year, the BuyingAdvice Team applauds this wagon for offering rear-wheel or all-wheel drive and a nice collection of powerful engines.

The Magnum has distinctive looks that tell a buyer right off the bat that this is an unusual, unique vehicle. It has a stance and style that is bound to spark opinions. What is sure to please, is the amount of room and power this wagon incorporates. With 2 base V6 engines or the harder-to-resist HEMI V8, which souped up with 10 extra horses in the SXT Trim will give you 425 hp, the power level you require from a wagon is easily met. Also, there is a formidable amount of space and five star safety ratings to attract buyers. Unfortunately, reliability has been less than average and the power of the engines also results in thirst at the gas pump.

Other wagons that have very different looks but cost about the same or less are the Mazda MAZDA6 Sport wagon or the Pontiac Vibe.

New SRT4 Trim Helps the Dodge Caliber Avoid Complete Mediocrity

The Caliber is a compact hatchback that debuted last year as a more versatile, stylish Neon replacement. Although the Caliber does have more room and utility to offer buyers, certain weaknesses really take away from its overall competitiveness. And while this year's debut of the SRT4 trim with its 285 hp engine helps balance out some of the lackluster performance in the lower trims; the BuyingAdvice Team still doesn't see enough strength in the Dodge Caliber to make it rise above most competitors.

Besides the speakers that fold down to help underscore your tailgating and a cooling beverage compartment, there's just nothing all that exceptional about the Caliber. Even though the new SRT4 offers more horsepower than buyers can usually get for that price, the handling and driving experience end up feeling clumsy and not connected. Safety features that are often standard for models in this segment, like ABS and stability control, are optional on most of the Caliber's trims. And without AC and middling fuel efficiency, there are some hatchbacks that just offer more for their price.

Some competition the BuyingAdvice Team recommends is the Scion xD and the Nissan Versa Hatchback. The price will look a bit higher at first, but you get more standard features included up front.

The Dodge Viper is Back with Even More Bite

After a break during the 2007 model year, the Dodge Viper is back with even more power, speed, a new hood design and some deliciously-named colors like "Viper Violet" and "Snakeskin Green". If you want raw power and speed from your sports car without distracting frills like comfort and safety, the BuyingAdvice Team think you will adore the new Dodge Viper. It features a hand-built 600hp V10 engine that's constructed for amazing acceleration pure and simple.

The Viper's design centers on being the fastest sports car in its price range. In addition to being able to reach 60 in 3.7 seconds, the Viper has a distinctive look, massive brakes, and power adjustable pedals so you can floor it with precision. What is ignored is an interior that matches its $85K price. Also disregarded are things like stability and traction control, which could be useful in a car that has tons of speed, but not the most refined handling. It's an amazingly fast, cool car. But it's not for green racers or the faint of heart.

If comfort and better daily drivability are things you are looking for in a sports car, we recommend the Porsche 911 Carrera or the Chevrolet Corvette Z06. You will lose a significant amount of horsepower, but you'll gain some safety features and driving versatility.

The Dodge Sprinter Cargo Van - The Mercedes-Benz of Vans

The Mercedes-Benz Sprinter leads the van market in Europe. When Dodge introduced this van to the U.S. three years ago, it quickly became a popular choice. With a new model for 2007, the BuyingAdvice Team believes that the Dodge Sprinter Cargo Van is a modern van with Mercedes' build quality, incredible amounts of cargo room and handling more in line with an SUV than other full-size vans.

Most experts believe the Sprinter has been significantly improved this year. With a longer and taller body that makes standing possible, better tilt/ telescoping steering, comfortable seating, varied configuration options and the best fuel-efficiency in its class, the Dodge Sprinter is hard to top. The Sprinter's fuel efficiency does trade-off some engine power and towing capacity. And the price is a bit higher than competing vans, but the quality is well worth it.

If power and towing are more important than superior maneuverability and fuel efficiency, the BuyingAdvice team recommends the Ford E-Series Wagon. If you would like to save about $3000 and increase your payload capacity, it may be worth looking into the Chevrolet Express Cargo Van and the GMC Savana Cargo Van.

The Dodge Caravan Passenger Van – The Original Minivan Is Well-Rivaled

The world's first minivan, the Dodge Caravan, hailed in a whole new market almost 25 years ago. Although many believe the days of the minivan are numbered, a van with room for seven passengers plus some extra cargo is still very much in vogue for some buyers. The BuyingAdvice team recognizes that the Dodge Caravan Passenger Van is one of the lower priced minivans on the market, but we believe that some competitors offer more desirable features at only a slightly higher price.

The Dodge Caravan has stayed close to its original formula, providing a practical van for those with stuff and people to transport. One pragmatic feature is seats that quickly and easily fold down in order to carry cargo. However, what's lacking is a more powerful engine, cargo space and better reliability. Also, many competitors have more standard safety features like ABS, side airbags and traction control.

If you are looking for a minivan with more power and standard features, the BuyingAdvice team recommends the Chevrolet Uplander Passenger Van and the Kia Sedona. They cost about $1,000 and $1,500 more respectively, but you will get a lot more van for your money.

Dodge Dakota Is a Smartly Designed Truck that Carves a Unique Niche

Our staff loves the Dodge Dakota as it hits a sweet spot in price and performance that compact trucks just can't compete with.

Do keep in mind, however, the interior is not up to par, and previous models have a well documented history of poor reliability.

Therefore, if you want better chances on reliability and reduced long term ownership costs from your pick up, consider the Honda Ridgeline or the Nissan Frontier. But, generally speaking, everyone on the BuyingAdvice Team agrees that the Dodge Dakota is a winner.