Have you ever heard of a new car being referred to as an “orphan?” These are cars made by companies that are going out of business. Some people in the know advise that you consider buying such a car because it could save you a whole lot of bucks.
Two such companies are now defunct Plymouth and Oldsmobile.
Many dealers still have them on the lot.
Isuzu recently announced that it will no longer be selling cars and SUVs in the U.S. by January 2009. So you might be able to get a good deal at an Isuzu dealership through the coming months. If you do this, however, make certain that the dealership will continue to service and maintain the car. Also find out if the company will continue to honor the warranties. Isuzu has stated it will continue to provide roadside assistance.
Another thing to consider is that car makers who go out of business are required to keep a 10 year supply of parts for the discontinued vehicles. It’s the law.
Our take? There might be some advantages when first buying the car. But what about your return when you are ready to sell it. It’s possible that by that time the manufacturer is no longer honoring warranties and no longer has parts in inventory. Also, whose going to want to buy a used car that has been discontinued for a long period of time. Unless it is somehow a novelty or collectors are fighting to get their hands on it.