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Discussion Starter · #1 ·
Buying from a 'dying' car brand

When car brands go away, the service continues but your value can dry up.

NEW YORK (CNNMoney.com) -- With all the problems in the auto industry, you may wonder if the car brand you're thinking about buying today will be around tomorrow.

The bottom line is this: "You should stick with the strongest brand," advises Robyn Eckard, a spokeswoman for Kelley Blue Book, which tracks automotive values.

It's not what could go wrong with your car while you own it, she said. It's what happens when you want to unload it.

There's been a lot of speculation lately that Chrysler and General Motors may be in talks to join forces. If the two companies do become a single automaker, analysts expect a number of brands to be phased out.

But whoever winds up with its name on the logo is buying a lot more than the other company's cars. "If they're bought by someone else, that company would have to buy the parts and service business," said David Champion, head of auto testing for Consumer Reports.

Besides the legal reasons that the new owners have to honor those warranty agreements, service and maintenance work is the best way to keep car customers coming back into dealerships. That builds relationships that result in more sales down the road for the company that bought the business.

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I'm reluctant to buy a Mitsubishi Outlander (the most appealing vehicle in its class imho) because of the possibility of the company pulling out of the US market, leaving me without proper dealer servicing, parts, etc.
 

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Nothing but an ADVERTORIAL for Toyota.

We can nip this kind of crap in the bud - right now.

There are within the American automotive market system, legal operations and requirements that protect the consumer if this were to happen.

The only way around it is if the consumer is presented and signs off on an unmistakable and very specific type of disclaimer at the time of purchase.

Our correct model here is Daewoo USA when they ceased sales operations in the '90s .

You can also look at when Fiat turned and ran away from this market when faced with the likely prospect of successful class action litigation concerning rust.

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And btw, given all the data and trends and future prospects concerning all that, Lexus and Acura are not strong brands at this point in a general sense and specifically concerning future value where they are falling rapidly in the used vehicle market place.

Matter of fact, about 80% plus of what's currently being driven is under severe downward pressure concerning future value - and most likely that's going to get worse and will never really get better.
 

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I'm reluctant to buy a Mitsubishi Outlander (the most appealing vehicle in its class imho) because of the possibility of the company pulling out of the US market, leaving me without proper dealer servicing, parts, etc.
Well, a brand phase-out is different than an entire company leaving the business.

I'd buy a Chrysler product without hesitation, just like I'd buy a GM or Ford product without worry. Had I had the money (I was still in college), I would have gotten one of the last Oldsmobile Aurora 4.0s.
 

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I'm reluctant to buy a Mitsubishi Outlander (the most appealing vehicle in its class imho) because of the possibility of the company pulling out of the US market, leaving me without proper dealer servicing, parts, etc.
That's the reason we probably won't be replacing our old Lancer with a new one. All the Mitsubishi dealers around me have closed down in the past few months and if it's anything like the 02 Lancers most parts have to come from the dealer because Autozone doesn't sell much for it.
 

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Well, a brand phase-out is different than an entire company leaving the business.

I'd buy a Chrysler product without hesitation, just like I'd buy a GM or Ford product without worry. Had I had the money (I was still in college), I would have gotten one of the last Oldsmobile Aurora 4.0s.
Ironically when Oldsmobile's demise was made public, my dealership saw an increase in Oldsmobile sales...
Loyal Olds people wanted to get one more...before the end...

We even went so far as to takeover the inventories of 2 former Olds outlets to meet the demand....mostly for Aleros & Silhouettes...
 

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All the current brands are not going anywhere unless it gets so bad you'll have other things on your mind rather than your vehicle's on paper value - that you now may be living in.

Who owns what and what they sell and where its made - whole 'nother story.
 

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Ironically when Oldsmobile's demise was made public, my dealership saw an increase in Oldsmobile sales...
Loyal Olds people wanted to get one more...before the end...

We even went so far as to takeover the inventories of 2 former Olds outlets to meet the demand....mostly for Aleros & Silhouettes...
Hear that, t-rex? Better get while the gettin's good, or there won't be an Outlandish left for you.
 

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Discussion Starter · #9 ·
Nothing but an ADVERTORIAL for Toyota.

We can nip this kind of crap in the bud - right now.

There are within the American automotive market system, legal operations and requirements that protect the consumer if this were to happen.

The only way around it is if the consumer is presented and signs off on an unmistakable and very specific type of disclaimer at the time of purchase.

Our correct model here is Daiwoo USA when they ceased sales operations in the '90s .

You can also look at when Fiat turned and ran away from this market when faced with the likely prospect of successful class action litigation concerning rust.

******************************
And btw, given all the data and trends and future prospects concerning all that, Lexus and Acura are not strong brands at this point in a general sense and specifically concerning future value where they are falling rapidly in the used vehicle market place.

Matter of fact, about 80% plus of what's currently being driven is under severe downward pressure concerning future value - and most likely that's going to get worse and will never really get better.
Ya I was thinking this is another dont buy american cars article, but I figured I would still throw it up here. The only thing that will cause stuff like this happening is people to stop buying the cars, so really its a self fulfilling prophesy
 

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Ironically when Oldsmobile's demise was made public, my dealership saw an increase in Oldsmobile sales...
Loyal Olds people wanted to get one more...before the end...

We even went so far as to takeover the inventories of 2 former Olds outlets to meet the demand....mostly for Aleros & Silhouettes...
Ha of course, the demand shoots up for the two crappiest models they happened to build :D



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Hear that, t-rex? Better get while the gettin's good, or there won't be an Outlandish left for you.

What's wrong with Mitsubishi? They are not big enough to be a challenge to anybody and pay UAW wages to Americans. I see no problem there.

As far as buying from a dying brand, I really wanted an Intrigue. Mysteriously, several years later I ended up with a W-body anyway.
 

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What is so crappy?


My dealer also has Pontiac...from 99-04, even with the 05 Grand Am...we sold more Aleros new than Grand Am's....

Same held true with the minivans....people loved these...

I had a 2003 alero...i loved it...
Well they all have various mechanical issues from 3,4 intake gaskets and the Alero especially with the wheelbearings all the time

Think I had a 2003 Alero as a rental once, may have been an 02, was okay

Compared to say the Aurora which was really very good (okay there are issues there too)



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Nothing but an ADVERTORIAL for Toyota.

We can nip this kind of crap in the bud - right now.

There are within the American automotive market system, legal operations and requirements that protect the consumer if this were to happen.

The only way around it is if the consumer is presented and signs off on an unmistakable and very specific type of disclaimer at the time of purchase.

Our correct model here is Daiwoo USA when they ceased sales operations in the '90s .

You can also look at when Fiat turned and ran away from this market when faced with the likely prospect of successful class action litigation concerning rust.

******************************
And btw, given all the data and trends and future prospects concerning all that, Lexus and Acura are not strong brands at this point in a general sense and specifically concerning future value where they are falling rapidly in the used vehicle market place.

Matter of fact, about 80% plus of what's currently being driven is under severe downward pressure concerning future value - and most likely that's going to get worse and will never really get better.
I haven't seen our legal system protect us lately, have you? You can sue anybody you want, but if they have no money, your SOL!! I never saw a dime when my GM diesel blew up!! I got a $1500.00 coupon in the mail 13 years later. It still sits in my drawer.
This is good advice for prospective buyers. How far do you have to drive when the respective brand dealership folds in your neighborhood. There are way more aspects of being stuck with a lame duck brand. GM is having a hard time getting parts for cars that are less than two years old because the supplier is out business. Due to the financial crisis, many consumers are looking at holding on to their cars for a longer time period. The smart choice is obvious, buy a vehicle from a company that's not going out of business.
 

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What is so crappy?
Ewwwww! The N-bodies were GM's worst cars! They were atrociously built, fell apart after a few years... they were just awful. And ugly to boot. While the Alero was the best-looking of the N-cars, it wasn't a particular attractive car.

The U-bodies were just a bit underdone. My Aunt & Uncle have a Silhouette, and it's been rock-solid, but sadly the U-vans in general don't have that reputation. And if painted dark blue, like theirs, the Silhouette looks a tad classy...

Again I point to the fuddy-duddy-ness of the Oldsmobile name that led to the brand's demise. Come on, it had "old" in the name; how are you going to attract the techy, import-oriented buyer with a name that reminds you of a grandfather clock? Ooooooooooooldsmobile. The name alone suggests that each model would come with added features like a walking cane, and incontinence warning light, and a bifocal windshield.

It had to be the name.

The Aurora was a magnificent car, not flawless mind you, but probably the finest car GM's built since the 30s, yet it sold poorly, even for its price, and was invisible on most buyers' radars. The second-gen model was even more attractive, being distinctive without being odd, had a dashboard and interior materials that matched, or exceeded, most of its competitors. Though here it's difficult to say what the Aurora competed against. Acura RL? The ugly bigger Infinitis? Who knows. But sadly not even GM fans wanted one. It's not only the only GM car I ever seriously considered buying, but one of the very domestics I ever gave a second look. GM allowed this fine automobile to waste away, unloved. There's a silver lining though... they're so unwanted, they make incredible secondhand buys. I've seen '02s going for as little as $6500... It was tempting.

I have to give GM credit for the Intrigue too. While sadly most rolled off the assembly line with that horrible 3800 V6 (sorry GM fans, reliable it may be, but it was about as refined as Roseanne Barr...), GM went through great pains to create the "Shortstar" V6 just for the Intrigue. It had an attractive dashboard and clean, modern styling that would have appealed to an import buyer such as myself.

Ya know with GM's association with Toyota via NUMMI, Oldsmobile should have gotten an entry level model to capture first-time buyers. The first time I saw one of these, the first thing popped into my head was "Look! A baby Oldsmobile!"...



(though any car with really wide headlights looks like an Olds...!)

I've often wondered why GM didn't fold Olds into Saturn ages ago and gradually, rather than suddenly, build up the Saturn lineup with cars like the Intrigue and Aurora.

Who knows, maybe it woulda worked...
 

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I haven't seen our legal system protect us lately, have you? You can sue anybody you want, but if they have no money, your SOL!! I never saw a dime when my GM diesel blew up!! I got a $1500.00 coupon in the mail 13 years later. It still sits in my drawer.
This is good advice for prospective buyers. How far do you have to drive when the respective brand dealership folds in your neighborhood. There are way more aspects of being stuck with a lame duck brand. GM is having a hard time getting parts for cars that are less than two years old because the supplier is out business. Due to the financial crisis, many consumers are looking at holding on to their cars for a longer time period. The smart choice is obvious, buy a vehicle from a company that's not going out of business.
Appears you don't know what you're talking about or what I referred to.
 

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We can nip this kind of crap in the bud - right now.

There are within the American automotive market system, legal operations and requirements that protect the consumer if this were to happen.
You can't stop this kind of speculation especially when many of its warnings are true. Why buy a dying brand?

The public knows Chrysler is almost toast, so why buy one unless it's an incredible deal? The resale value will be awful however. Or even Pontiac? Any person buying a Pontiac nowadays will find it to be a dead brand in a few years with lousy resale too.
 

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The Aurora was a magnificent car, not flawless mind you, but probably the finest car GM's built since the 30s, yet it sold poorly, even for its price, and was invisible on most buyers' radars. The second-gen model was even more attractive, being distinctive without being odd, had a dashboard and interior materials that matched, or exceeded, most of its competitors. Though here it's difficult to say what the Aurora competed against. Acura RL? The ugly bigger Infinitis? Who knows. But sadly not even GM fans wanted one. It's not only the only GM car I ever seriously considered buying, but one of the very domestics I ever gave a second look. GM allowed this fine automobile to waste away, unloved. There's a silver lining though... they're so unwanted, they make incredible secondhand buys. I've seen '02s going for as little as $6500... It was tempting.

I have to give GM credit for the Intrigue too. While sadly most rolled off the assembly line with that horrible 3800 V6 (sorry GM fans, reliable it may be, but it was about as refined as Roseanne Barr...), GM went through great pains to create the "Shortstar" V6 just for the Intrigue. It had an attractive dashboard and clean, modern styling that would have appealed to an import buyer such as myself.
I agree with you about the Aurora and Intrigue. They are two terrific looking cars that perform well. I also like the 88/LSS of the 90s. They have clean, sleek designs that have aged quite well. It's hard for me to believe when I see an 88 driving along that it is at least 10 years old. Olds had most of my favorite GMs in the 1990s. I often catch myself thinking hypothetically, wondering what if Olds was still around today. I like to think GM would have kept them on the path they established in the 90s, producing nice looking touring cars.
 

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Appears you don't know what you're talking about or what I referred to.
I know what your talking about. Your example is like the Oldsmobile scenario. GM made it so you could go to any GM franchise to get your car serviced. GM was obligated by law to uphold the warranties. GM had money back then!! I don't think your going to see any domestic automaker be that supportive in these times. I'm not willing to bet $20,000 dollars on a new car from a troubled brand. The brand could be sold off before it's discontinued, like Hummer. Then who has the obligation to warranty the vehicle?
 
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