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Car by yourself -- Friday that Jeremy and -- the guys Chief Executive Officer of Edmunds dot com ended Jeremy thanks so much for joining us.
Historic my pleasure strange times are here in DC right now I mean now we're talking about Chrysler.
You speeding through a bankruptcy potentially here and in General Motors and literally knocking on the door it seems inevitable now -- -- whoever reporting.
That it seems they are indeed going to file on Monday what's with that your take at this juncture here.
Well good to -- -- it's not I think a foregone conclusion about GM I think the odds probably are but as you were talking earlier GM is very different than Chrysler not the least of which is global site I expect the challenges that would arise during bankruptcy would probably be more onerous on them the process.
Could drag on so there's a lot more risk for GM bankruptcy and they may actually decide at the last minute.
If they can get enough of these deals done over the weekend to -- not filed -- I think the odds probably are right now that they will.
And you talk and ideals like the selling of Opel in Europe -- box on some of their other brands.
Yeah they've got to get the deal wrapped up with the bondholders so they're making progress on that -- yesterday I think they were up to 35% approval.
You know that the negotiations going back and forth from the media with that.
We now magnet on the German government and GM and the US government to analyze stuff was obviously coming down the wire so -- -- -- know for sure till Monday.
And I do think it is going to be one of those last minute decisions.
You know what our first guest on the show today.
At Jeremy -- he was Bernie.
He's an investor and we're talking in about what stocky one stone he supports.
That hands him contend she went the last time he went and bought a -- he said hey listen I'm going out tonight not gonna buy a car.
So you know we're right -- -- go -- -- indictment in viewing tells what kind.
If you -- there is a model -- not yet.
It because you -- at Edmunds dot com look at all things out of related for the consumers as well.
If you have the option to wait through the weekend to actually see there's a bankruptcy filing and potentially some -- sales from that mean.
As the consumer should you wait what with the scenario.
That the situation is a little different between Chrysler and GM and here's the issue with with Chrysler they terminated.
Little about 800 of their dealers effective June ninth.
And -- that those dealers still had any cars on the ground after June ninth they wouldn't be -- eligible for incentives or any of the other things that the dealers might again from Chrysler so they have a lot of pressure.
To us all those cars that sold over half of them basically in the last week or so there's still some of those out there and there are exceptional deals on those vehicles.
But on the other hand the rest of the Chrysler vehicles GM vehicles there are still kind of selling a pricing actually that might even be up a little bit than other -- pricing such it.
There are great deals out there are bad just because the companies in bankruptcy doesn't mean that the deals are actually any sweeter.
They Jeremy John -- -- commenting here on the boards.
One of our viewers so wants to -- the value of the use General Motors or Chrysler vehicle will drop to to these bankruptcies here what would you tell him.
It's not as bad as as people are forecasting we're looking at maybe a 2% drop over five years on -- Chrysler vehicle and I think the -- -- -- about the same as as -- -- -- -- -- other folks out there are forecasting a much bigger drop.
But we're basing that on the fact that the transaction prices of the new vehicles actually having dropped that much and in some cases the release -- even gone up.
So I don't think that that's one of the things I'd be worried about -- I was thinking about buying a vehicle in the next few weeks.
And -- -- -- collector.
Yeah laughing but I think yeah I think -- be great to buy a car right now Jeremy in -- keep it from.
Thirty years in General Motors -- it's still a reality that that it might my father had a really old classic car in 1958 we're looking at statistics -- yesterday at 1958 -- -- And 1950 for a GM it's split I think now he actually did but thank you for.
But it in 1954.
A General Motors sold its fiftieth and fifty million car we talked about that you know it.
And and as he had this -- Nick Greisen you know he's redundant.
I guess it's worth something it's more sentimental than anything -- ahead.
It's wonder if that's going to be the same case it.
You know fifty years from now if this big companies even going to be around -- -- -- -- collector -- -- I don't know who buys for that these days.
Authenticate with collectibles obviously is -- how much -- -- -- vehicles are actually produce so there's one example right now which does the -- Pontiac Solstice coupe which is a limited production vehicle.
Finance going away so if you're going to be facing a bit of a bat there's there's one option that will be in the market -- you know what about a thousand of those -- -- I'm so that you mention that -- that this little secret -- reviewers as -- as Jeremy is that Adam Shapiro has been one of our other correspondent has been dying to go out and buy a car.
He hit that midlife crisis if not he didn't imagine that he carton and -- -- -- -- so this is a pretty cool looking car.
The group has there's probably not looking at the venerable so that might be one option for people like I'm -- email -- right now capsule and -- a good point brought up 01 of our viewers here was saying.
What I think -- Chris from LA wondering you know.
Everything's on fire sale right now they're trying to move these things -- lots.
What does that do to to demand you know when these guys are -- more financially if you fiscally fit if you will coming out of potential bankruptcy for GM and out of it for Chrysler.
What about the demand waiting for them on the other side.
-- there isn't good pretty good argument to be made we're looking at may sales -- about nine and a half million on an annualized basis way below sort of the normal rate of sales.
Argument that could be made that there's a demand that said that sort of building up and at some point that's that's going to be at least when people feel more comfortable about the economy going forward.
And I think for that reason for other reasons that our prices are probably going to be trending up over the next you know -- and I knew you could make a -- argument they're going through the summer.
That this is this for them for people that are are feeling that help financially comfortable this is the time to be buying because the deals are going to be -- -- -- getting any better.
Right and I interviewed -- this morning as they -- and they're concerned about.
Yet the way that cars come out you know from.
Government motors is everyone's -- the 11 o'clock PM these days after restructuring our -- potential -- it seems like it will be.
And that you oil would be sort of dictated by Washington what kind of model -- in fuel efficiency or whatever and they are concerned about the choice they're gonna have.
Coming out of that and maybe people wanna go and buy now because maybe you're buying at the bottom measure saying prices are gonna go up probably.
Buying now and that's you know sort of at the fears of people -- -- -- now before they're concerned about what comes out of that.
Yeah I think you'll be -- resonant -- just a question obviously about.
Who's gonna be -- managing -- on the day today basis obviously the government says it's going to be hands off but we'll have to wait and see.
Clearly I think that the assumption is that over time gas prices are going to climb.
And that's gonna have an influence on the other cars that are actually -- on the marketplace so there's there's not plenty of reasons right now in terms of choice and also -- that says that this is Melia.
A once in a lifetime opportunity.
And Donald was wondering he's one of our viewers as well with the top selling American cars in 2009 that maybe we can open and out.
And you know what the tax on cars in our overall in America right now.
Well it's it's burying I kind of month by month because as fuel prices and the slowing economy ebbs and -- I remember last summer we had a huge spike in fuel prices in the top selling car for a while that was actually.
Honda -- based on fuel economy that's kind of shifted around and now we're saying that that demand has shifted towards more mainstream larger vehicles.
Some right now we're saying a lot of strengthen the crossover segment.
These -- sort of like -- -- minivans and suvs that get decent fuel economy but you could see six maybe do some light -- so that's a very popular segment.
-- in them larger sedans.
Are doing well -- -- a lot of new hybrids coming into the market the Pentagon more expensive that there was interest in the look at because they show obviously showcasing great technology.
Yeah we had just had an interesting question here from VSL.
The GM building is it now a toxic assets.
Does it get sold off in bankruptcy any -- any thoughts on that.
-- Think that's -- really let's not really one of the things that people would expect to see this -- up.
No -- that if you look at the bankruptcy that the -- going through the Chrysler or potentially be going through them on the Chrysler went through it's really about restructuring.
And it's not about that's on -- day today liabilities.
Supplier -- things like that.
They've built up some issues over the years -- -- just trying to sort of -- -- a divorce themselves from them and seems like the cleanest way to do it through bankruptcy that.
The day to -- operating expenses don't seem to be the real issue.
Quick question preakness three happily eat out -- you you're your thoughts write your CEO.
Right like Europe that is on the bottom here is the bots -- and we're gonna do -- his statement next on you know what happened if if you have a really bad.
Relationship with your box and made that we did I think we should be very bouncing to Jeremy and me.
How how to eat candy good employee though to Jeremy rate can't just be getting his living your -- for being great right.
Well I think -- -- that we're going through some very tough economic times so on the one hand.
I think you know -- a at a company people looking for leadership and clarity and communication and what's the company going through and and what employees can expect.
And you know speaking.
-- -- from an employer perspective obviously you're looking for employees are making a contribution as well -- journalism is going to be a good balance there.
All right I don't know if this is a trade secret -- not that I've got a two part question for you to finish out what are you driving now on what are you buying the next car.
Right now I'm driving a Range Rover which I've had for about six years is a breakdown -- about.
-- actually doesn't.
That many -- site and it's only about 30000 miles I don't drive very much.
And I -- I really bad thing employing or whether I should be getting a new car and I just don't drive very much I'm gonna kinda hold them only got about two miles an office every.
And the big rush to -- buying it and.
At that erotic and was that your dog in -- Santa Monica mean argues that's to be in a driving on the think the people out there we know that -- -- there's any.
I gotta tell you an LA traffic that -- no funds are mad at them and appoint the -- very closely office and I did move by.
This is why he's seen -- -- that he argued that really until ideally hope to see you back now dissolution of seeing maybe next sneaky and thank you very much Jeremy --
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