Suzuki recently announced it will stop selling cars in the US, and now there are bargains galore on new Suzuki models. But are there any drawbacks to buying a car from a defunct automaker?
There's nothing like a bargain price on a brand-new car.
But is buying a brand-new car from a departing manufacturer a good deal?
That depends on how the carmaker exits; unlike Saab last December, Suzuki isn't bankrupt and it hasn't stopped making cars. It's just stopped selling them in the U.S.
It also depends on whether your local Suzuki dealer plans to stick around for a few years to service the cars, or whether it plans to close its Suzuki business and transfer warranty claims work to another dealer somewhere further away.
But, first, the purchase price on that new Suzuki--which likely just got lower.
As the case of Saab just this past January showed, dealers may offer 25 percent or more off the new-car sticker price when a brand pulls out of the market.
The tactic worked, too: An Ohio Saab dealer sold 55 of its 122 new cars in one week by slashing prices 25 to 45 percent.
We know of a Detroit buyer who was able to get $4,000 off the $20,399 price of a brand-new 2013 Suzuki SX4 with all-wheel drive and the value package that includes a navigation system. He closed that sale yesterday.
Unlike Saab, however, Japanese carmaker Suzuki isn't defunct, however; only its U.S. unit declared bankruptcy.
That means that not only will parts continue to be available, but that warranties on existing Suzukiswill continue to be honored, and parts availability shouldn't be a problem.
When Saab declared bankruptcy last December after several failed sale attempts, its dealers were left without warranties on their brand-new cars--and had to sell them that way.
That Ohio Saab dealer created a $1,995 service contract for 60,000 miles to substitute for the defunct factory warranty.