Bankrupt Automakers Attract Lots of Bargain Hunters, but Some Forget to Negotiate, Reports Edmunds.com
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Bankrupt Automakers Attract Lots of Bargain Hunters, but Some Forget to Negotiate, Reports Edmunds.com
Purchase Intent Up for both Chrysler and GM; Consumers Should be Aware that Pricing Up Also
SANTA MONICA, Calif. — June 1, 2009 — Shopping traffic on Edmunds.com dispels the notion that consumers will refuse to buy cars from a bankrupt automaker.
Purchase intent for Chrysler vehicles has been remarkably high since the company filed for Chapter 11. In mid-May, purchase intent rose 72 percent over its April average.
Additionally, amidst wide speculation that General Motors would file for bankruptcy, purchase intent for the company's vehicles was actually up 4 percent on Edmunds.com for the week ending May 31 and up 11 percent for the week before that.
Edmunds.com measures purchase intent by evaluating specific site traffic behaviors that have been proven to be good predictors of sales to come in the near future.
"The bankruptcy filings of Chrysler and General Motors have attracted more shoppers to those brands than anyone might have guessed," noted Edmunds.com Senior Analyst David Tompkins, PhD. "Comforted by the government-backed warranty, shoppers are drawn by the thought of bargains."
Edmunds' AutoObserver.com reported that this phenomenon gets GM and Chrysler vehicles onto more families' shopping lists — something the companies have been trying to do for ages. Each company has the opportunity to generate an extended customer base as a result, if the vehicles exceed expectations.
However, more than ever, shoppers must do their homework and prepare themselves for the negotiation in order to get the good deals that they seek. Edmunds.com analysts have determined that while the industry average discount has remained flat at around 16 percent off sticker price in the past three months, the average transaction price on a Chrysler has gone up from $24,489, which is about 26 percent off sticker, to $26, 390, which is just 18 percent off sticker.
"Just because a brand is hurting doesn't mean that a shopper can automatically walk in and simply get a great deal," remarked Edmunds.com Consumer Advice Editor Philip Reed. "Researching the True Market Value price is more important than ever."
About Edmunds (http://www.edmunds.com/about/)
Edmunds.com publishes four Web sites that empower, engage and educate automotive consumers and enthusiasts. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value® , is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in January 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in February 2006 and is an automotive social networking Web site and home to the oldest and most established automotive community. Edmunds is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.
