When Chrysler announced plans two weeks ago to shed 25 percent of its dealer network by June 9th, the 789 retailers affected had more than 44,000 new Chrysler, Dodge, and Jeep vehicles sitting on their lots. Chrysler’s move triggered some to immediately drop prices, as they tried to divest themselves of bloated inventories before the June 9 deadline. Does that make this an especially good time to make a deal? As we’ve reported before, good prices can be found, though there are significant caveats to consider. Chrysler considerations The most significant caveat is that no Chrysler, Dodge, or Jeep models are recommended by Consumer Reports . Reliability has been below average for most, and others have scored too low in our testing. That said, we understand that many people purchase non-recommended vehicles and car shoppers will be tempted by the aggressive pricing now available. Those shoppers may be disappointed with the models left in stock. Harold Bendell is President of Major Auto World , a multi-branded dealership that sells Chrysler, Dodge, and Jeep along with other makes in Long Island City, NY. He pointed out that after months of discounts and rebates, buyers will likely find much of the remaining inventory to be increasingly made up of less-sought-after models, or those in unpopular colors or lacking popular features. As for prices, Bendell says things can only get discounted so far. “There are some people coming in thinking they can get a super-duper deal, 50 cents on the dollar. They can’t.” That may change, as the June 9 deadline fast approaches, particularly at smaller, single-line dealerships, if not big ones like Major World. Prior to the bankruptcy filing, Chrysler officials urged dealers to take additional inventory and said doing so would increase their good standing with the automaker. Some then lost their franchises anyway. According to Bendell, any cars that remain on dealer lots after their franchise is lost must be sold as used cars. Additionally, the Chrysler won’t extend rebates or incentives on those models. Chrysler said it is helping to find homes for any unsold inventory at its remaining dealerships, but Bendell remains skeptical, particularly if those models are older inventory or less-popular models. A quick Internet search found widely varying prices among Chrysler, Dodge, and Jeep dealers, but we did see some deep discounts, especially on 2008 models. We found a new 2008 Dodge Avenger SE listed for $15,542, a discount of $4,818. The same dealer was offering a 2008 Dodge Caravan SE discounted $7,425 to $21,900. Good news for buyers looking to trade is that in spite of losing their franchises, many Chrysler and Dodge dealers are planning to continue in the used car business and are looking for used inventory. “Most of the Chrysler dealers I know are buying at auction” said Bendell. “There is a ready market for used cars, prices are astronomically high.” Be especially wary of buying a “new” car once it must be sold as a used model. The U.S. government agreed to back warranties on new cars sold during the Chrysler bankruptcy, but if the model is sold as used the compelling “Lifetime” powertrain warranty protection is not available, as the warranty is non-transferrable . Plus, financing rates are also likely to be higher for a used car than a new one. While it may be tempting to save big on a new car now, remember the risk you may face bigger losses later in depreciation and increased repair costs. (Should you intend to keep a vehicle longer than five years, depreciation may not be a factor, though reliability should given even higher priority.) Purchasing a vehicle from an automaker going through bankruptcy exposes the consumer to further risks, as there may not be the traditional lemon law and product liability protection . No matter what vehicle you desire, be sure to do your homework to ensure you are buying a good, safe, reliable model with average or better project owner costs. In this economy, it is best to minimize the surprises, and the research can be done in minutes using our interactive new car selector . We will continue to monitor the news from Chrysler and GM, reporting here in the Cars blog and also updating advice and news on the Auto Crisis hub . — Jim Travers

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Can you get a great deal on an orphaned Chrysler?