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Feb 20, 2008 8:19 am US/Central
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Consider Adopting An 'Orphan' Car
MINNEAPOLIS (WCCO) ―
If you or someone you know is in the market for a new car, you might want to consider buying what some call "orphans."
By that we mean cars or trucks made by companies that are about to go out of business. It's an odd concept, I know, but if you have not firmly committed to buying a certain make and model of car, it is worth looking into.
The folks at
Bankrate.com say the advantage to the buyer is that the dealer and the manufacturer are eager to close out their books, so it is possible to get some get some good deals.
Plymouth and Oldsmobile are two recent examples of car divisions that went out of business, yet continued to sell off inventory until the day when the last dealer closed its doors.
The latest car maker to announce it's going out of business is a Japanese company. Isuzu is expected to close up shop by January 2009. Until then dealers will sell of the Ascender SUV and the small I-series pickup.
I spoke to a couple of the Isuzu dealers in the Twin Cities. One of them stopped selling the SUVs and trucks a year ago, and another is all out of the Ascender SUVs but still has a few trucks left. Both dealerships say they still service Isuzus and will continue to do that.
If this sounds risky to you, consider this: Isuzu says it will continue to honor all of its warranties and roadside assistance programs, and most of its dealers will continue to service their vehicles.
Also keep in mind that federal law requires car manufacturers to make available a 10-year supply of parts.
I talked with Scott Lambert, vice president of the Minnesota Auto Dealers Association. He told me that people really need to understand what they are getting into if they choose to buy a new car that has been discontinued. He said to ask whether the vehicle you want to purchase is a good deal right now and will hold its value.
He says customers should still compare the vehicle to the like models in the same class to determine if it really is a steal.
An as for holding its value, it's a tough question to answer. He says it depends on if there will still be some novelty to the vehicle in a few years.
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