Champion Motors files Chapter 11
05-12-2009, 12:17 PM
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Champion Motors files Chapter 11
http://www.bizjournals.com/southflor...4/daily70.html
Dealers stuffed with cars they can't sell. PAG buried in debt. A new high-priced front-engine model released. Reminds me of the 70's & 80's....
Dealers stuffed with cars they can't sell. PAG buried in debt. A new high-priced front-engine model released. Reminds me of the 70's & 80's....
05-12-2009, 08:27 PM
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^ the reality is champion may not be in "bankruptcy". the legal term "bankruptcy" usually means you got lots of money, but just hidden from creditors.
05-12-2009, 09:52 PM
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05-13-2009, 12:08 AM
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I have not seen it on ebay or cars.com in a while... I know it was a consignment car and when I was there less than a year ago, they quoted me $175K and then I watched the buy it now price go down and down to the high $140s and have not seen it since...
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05-13-2009, 02:14 AM
#8
Though I'm not happy to read this, I am not surprised. I mean really people, it is 2009 and Champion's website SUCKED ash bats. Couldn't even view inventory pics and details.
Let this be a lesson for others... sucky website = bankruptcy.
Let this be a lesson for others... sucky website = bankruptcy.
05-13-2009, 10:40 AM
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OldGuy: Can't believe I'm actually saying this but you're living in the wrong part of the country. My dealer (Boston area) is offering $20k off list on Turbos.
05-13-2009, 04:54 PM
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they are my local dealer and I check the website all the time. It's the standard PCNA site format and full details are always available for all new and used cars.
05-13-2009, 05:55 PM
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My guess is Champion's problem is related to financing and not being able to roll over loans. They might have a mortgage on the buildings which they can't refinance, or, they have been asked to pay down several million on the floor plan... I suppose details will come out.
One of the problems all car dealers face is much tightened credit for buyers/leasers. Porsche Finance is a lot fussier about credit scores, even in Canada where no banking crisis exists. Add to that much lower margins and perhaps excess inventory and you have a perfect storm brewing. I suspect this is what Chris was hinting at.
One of the problems all car dealers face is much tightened credit for buyers/leasers. Porsche Finance is a lot fussier about credit scores, even in Canada where no banking crisis exists. Add to that much lower margins and perhaps excess inventory and you have a perfect storm brewing. I suspect this is what Chris was hinting at.
05-13-2009, 09:23 PM
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i think i am bankrupt. i need bail out from PAG. a garden variety, zero option RS in any color would do. i am not picky.
05-13-2009, 11:21 PM
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My guess is Champion's problem is related to financing and not being able to roll over loans. They might have a mortgage on the buildings which they can't refinance, or, they have been asked to pay down several million on the floor plan... I suppose details will come out.
One of the problems all car dealers face is much tightened credit for buyers/leasers. Porsche Finance is a lot fussier about credit scores, even in Canada where no banking crisis exists. Add to that much lower margins and perhaps excess inventory and you have a perfect storm brewing. I suspect this is what Chris was hinting at.
One of the problems all car dealers face is much tightened credit for buyers/leasers. Porsche Finance is a lot fussier about credit scores, even in Canada where no banking crisis exists. Add to that much lower margins and perhaps excess inventory and you have a perfect storm brewing. I suspect this is what Chris was hinting at.
A big problem, hidden from consumers, is a lack of credit at the wholesale level. Banks and finance companies are being much stingier.
Anyone who has commercial mortgages coming due now is in for a shock. Traditional sources of capital just aren't there anymore and those that are are much more expensive and their terms stink.
Banks and wholesale (floorplan) companies want equity and they want cash. They are squeezing companies. Ask me how I know.