Should you buy an orphan? We're not talking about buying and selling children. We're talking about buying new cars made by companies that are about to go out of business. Plymouth and Oldsmobile are two recent examples of car divisions that went out of business, yet continued to sell off inventory until the day when the last dealer closed its doors. Isuzu -- the Japanese company that has been selling trucks, SUVs and the occasional sedan -- is expected to close up shop by January 2009. Until then, dealers will sell off the Ascender SUV and the small I Series pickup. The advantage to the buyer is that the dealer and the manufacturer are eager to close out their books, so there are good deals to be had. Skeptics say the downside is that when it comes time to sell or trade, the orphan car may be worth less than a comparable vehicle from a manufacturer that's still in business. While that may be true for some cars, it's not always the case. Consider the 2001 Plymouth Neon, the last car made by that now defunct Chrysler brand. It's identical to the 2001 Dodge Neon, which is still being manufactured. replacecontent-tcm:8-21751 A check at Edmunds.com, shows that a 2001 Plymouth Neon with 65,000 miles would be worth $3,429 as a trade-in. Yet a comparable Dodge Neon would be worth just $2,952 at trade-in. |