Chrysler would file chapter 11 which means they will have the bankruptcy court come in and try to settle their debt and reorganize the company. They will still operate as they always have. If it goes to chapter 7, well it's game over for Chrysler.

 

I was going to post something close to this! I think it is funny that no one has caught on but a very few!!! Usually you guys are all over these kind of slip ups!

You are right, Dodge told me "No way in h3!! would they cover Lariat warranties!!"

ROFLMAO

 

What Obama says doesn't mean much to me, but on the topic of warranties, here's where it stands:

If Chrysler files Chapter 11, they will continue to operate and our warranties will still be honored. The minute they stopped honoring warranties would be the minute they'd stop selling cars.

If Chrysler files Chapter 7 they officially cease to exist. The profitable lines (Jeep Wrangler & GC, Ram, T&C, Viper) will be sold off. Our warranties are a higher class of obligation than basically all of their debt. What that means is that a portion of the proceeds from the sales will have to go to cover our warranties. They are a liability that Chrysler carries on the books. And the only way Chrsyler is filing Chapter 7 is if it is better for debtors, who are getting paid out after our warranties. So if they're getting paid out, our warranties are covered. Chrysler may need to setup a trust or something to handle our warranty claims, but somehow they will be honored. Additionally, there is a very good chance that they are insured, so as to limit the liability to Chrysler, in which case we have even more guarantee of them being honored.

So, in summary, your Dodge warranty will be honored one way or another. You are in fact safe.

 

Chrysler Credit is either a separate company or operational unit. If Chrysler goes under it does not mean that Chrysler credit will go under with it (most likely won't).

Now, for the sake of discussion, if Chrysler Credit were to go under, you would still need to make payments on the truck. Why? B/c if you didn't it would simply get repo'ed. Why is that? B/c if Chrysler Credit goes under, they still have assets that will be sold off. What are those assets? The vehicle notes just like yours. So, someone will buy up the notes (most likely at a discount) and you will now be paying them. Let's say the lifetime revenue of a note is $40,000 (sum of all payments with interest). If the truck cost $30,000, there was $10,000 of profit there. That's normally worth some amount of money up front, say $5,000, to earn $10,000 over 4 years. Anyways, in bankruptcy they may pickup the whole note for 25k (a steal of a deal), but you will still owe payments to someone.

 

We made our decision, perhaps against better judgment, to buy the Ram 1500 and not an F150.

It was a very close, difficult process and decision because both trucks are really fine vehicles. I've seen F150's being made in Dearborn twice, very impressed by Ford quality controls. And the Ford has that nice step into the bed which doesn't seem on Dodge's horizon. Still came down to the engine and MPG. Take delivery Monday; deal saved $9,000 off MSRP (yeah, I know I could'a gotten more if I played it better but they wore me down after two hours and the numbers on the page stared to blur); the darn clam shell cover is $1,950 (YIKES! but it looks absolutely fab, very sexy and decided I can't live without it ); CA tax kicked my butt for thirty-six hundred.

But as you guys know, this truck is a monster, very well designed and great lookin'. I kept my Tundra nine years, hope this Dodge wears as well. And we only live once, right? (See? I have lots of ways to rationalize my extravagance.)

Thanks to all replys. I'll be back to read all your posts and articles. Happy to join the Dodge community and sure hope the Company survives and prospers.


Ram 1500 Lamarie, crew cab, 5.7 Hemi VCT, bed liner and clam shell top, mineral grey metallic, nav system with back up camera, 32 gal tank, uconnect, 20" tires (YES!), DVD.