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.

The Jeep Wrangler: Exclusively Built for Off-Road Adventure

Despite its long, proud history, there are really only a few, select reasons to be interested in a Wrangler. If you want a vehicle that can travel off the beaten path more than on, your interest in a Jeep Wrangler is totally justified.

If you are interested in a practical vehicle, or an SUV that's geared towards everyday driving, you are going to want to look elsewhere. Though the Wrangler isn't an intolerable ride around town, here are the practicalities that Jeep's off-roading icon cannot be bothered with: any inkling of side-impact safety, sufficient highway acceleration or decent gas mileage. But many of us at BuyingAdvice admire Jeep for building a vehicle whose rugged looks really do match the pure-bred off-roading king it is designed to be. The Wrangler can truly take on all the unpaved terrain its competitors can and usually for a decent, lower price.

Other off-roading (but more expensive) options to look into are the FJ Cruiser and the Nissan Xterra.

The Jeep's Patriot - The Cherokee's Solid Successor

Jeep recently expanded their line in the crossover utility direction with releases like the Compass and Patriot last year. While the city dwelling Jeep Compass stands out as a departure from Jeep's comfort zone, its sibling that shares the same platform, the Jeep Patriot has more welcome, traditional Jeep styling and off-road performance to offer.

The first thing a buyer might notice when researching the Patriot is it has lower price compared to a lot of competitors (MSRP about 16K); especially ones that offer off-roading ability, which is available in an optional package. For their more rugged crossover, Jeep wisely chose not to round the edges of the exterior, making the Patriot more linked to the Cherokee's heritage. You get a decent amount of standard features for the price. But the Patriot is a bit slow when accelerating, and it could use a V6 engine option. Also, the black and white gauges are easy to read, but it would have been better had the interior quality moved closer to today's import standards.

A competitor that has more impressive engine performance is the Honda Element, but it costs a few thousand more. If off-roading is your highest priority, you may want to move up to the Jeep Liberty.

Diesels Are Reappearing in the U.S.

In this age of high-priced gasoline, diesel engine cars are looking pretty good.  That is why automakers such as Mercedes-Benz, Volkswagon and Jeep have all included them in their line-ups.  Not only do the diesel engines get better gas mileage, the diesel gasoline costs less too.

These diesels are not the same ones you remember, loud, foul-smelling and polluting the air, the new diesel engines are designed to not only meet strict federal clean air requirements but also to be as quiet and odor-free as gasoline engines, increase fuel economy by 25 to 40 percent and provide enough torque to please even the fussiest American drivers.

In 2010, GM is planning diesel passenger cars for their Cadillac and Saturn line-ups.  GM will be joining diesel front-runners such as DaimlerChrysler AG, Volkswagen AG, as well as diesel creator, Mercedes-Benz.  Audi is also in the game with the world's first twelve-cylinder diesel engine which gains the title of being the most powerful diesel engine for a production series.  This engine, which sprints from 0 to 60 mph in just 5.5 seconds, is available on the 2007 Audi Q7 V12 TDi.  If gas mileage is important to you, consider going diesel!

Liberty Rebates as New Model Nears

With its first redesign since the 2002 introduction due on lots later this year, Jeep dealers are being given help to move their existing stocks of the Jeep Liberty. The 2008 design promises a softer ride without a lost of the traditional off-road capability that is the hallmark of the brand, but is not expected to be available until the fall. So if you want that new Liberty for your summer camping and hiking adventures, grab the $3,500 rebate that is available now amid soft prices and head for the hills.

Jeep Puts Rebates on the Liberty

There seems to be some confusion at Jeep. After adding two new models to the bottom end of its range, they are now offering big discounts on the Jeep Liberty. By the time you add in the $3,500 rebate on the Liberty, the price gap to the Patriot and Compass narrows considerably. It seems that competition for the new Jeeps is fierce even in its own backyard.

Chrysler To Put Satellite TV in 2008 Minivans

If you can't get your kids away from the TV to take a ride, Chrysler has been thinking of you. The auto giant will be adding a satellite television option to its rear seat entertainment systems for the 2008 minivans. Only three channels will be available, Nickelodeon, Disney Channel and Cartoon Network, as the system uses the limited Sirius Satellite Radio bandwidth. The TV service costs an additional $7 a month over the $12.95 monthly subscription for the radio service. Chrysler expects the option to cost $470 and will also make it available on the many 2008 Chrysler, Dodge and Jeep models due on lots this summer.

Quick Reminder: Free Hemi Engines for Dodge Trucks

Way back in January, we reported that Chrysler would be giving away free Hemi engines on some autos this month. What was first announced as an offer that applied to the purchase of all Chrysler, Jeep, and Dodge vehicles has now been quietly reduced to Dodge trucks only.

The deal applies to the Dodge Ram 1500 pickup and the Dodge Durango SUV.  The powerful Hemi V8 engines usually cost about $1,700.

The free Hemi is in addition to other Dodge incentive offers.

When you're at the dealership, keep in mind that Chrysler's sales dropped 8% in January, and the company is pushing hard to boost its numbers this month.  If you've been wanting to buy a Dodge, this is the time to do it.

Read more in "Chrysler offers free Hemi engine."

2006 Jeep Special Dealer Incentives

From now until February 28, you can save up to $6,000 on select 2006 Jeep models. You'll have to ask the dealer about them in order to benefit, because these factory-to-dealer incentives are unadvertised.

Model	Rebate	Savings
Jeep Commander	$6,000	21.7%
Jeep Grand Cherokee	$6,000	21.8%
Jeep Liberty	$5,000	23.0%
Jeep Wrangler	$2,500	18.7%

Jeep Grand Cherokee Diesels Improve Fuel Efficiency - At a Price

The Chrysler Group has announced prices for the diesel versions of the Jeep Grand Cherokee. The Jeep Grand Cherokee will be the first full size diesel-powered SUV sold in the U.S.

The Grand Cherokee Limited will be rear-wheel drive and sell for $38,475.  That's about $3,000 more than similar gasoline-based models, or about 8 percent more.  The 4-wheel drive version will market for $41,715, about $3,700 more than the gas version, a difference of about 9.7 percent.

Whether their fuel efficiency will make up for their steep markups remains to be seen -- it is estimated that the clean diesel technology improves fuel efficiency by 30% -- but drivers can rest assured that emissions from the vehicles will be lower than their gasoline-powered counterparts.  Both trims will debut in March.