How will we be affected by the General Motors bankruptcy?
Where Do You Live?
General Motors, one of the world’s largest carmaking companies, has filed for bankruptcy protection in America. For as long as cars have been around, General Motors (GM) has been one of the three largest producers of cars in America and one of the largest in the world. Now the car industry is on its knees, and two out of the three big American car giants have now been forced to seek protection from their creditors by declaring themsleves bankrupt. But what does all this mean to us?
Well, for those of us in the UK, the answer is probably not much. If you own a car made by GM, you don’t need to worry about the possibility that you might not be able to get parts for it in the future, as the company is still in business and hasn’t ceased trading. After receiving protection from the American government, they hope to be through the worst of it in as little as three months. Further to this, the European branch of GM, which is responsible for Vauxhall and the German brand Opel, has already been sold off to a Canadian company who have agreed to do everything in their power to save the 5,500 UK jobs that could be at risk.
For consumers looking to purchase a new car in times like these, it could well be that leasing or contract hire could be a better option than buying outright, as it gives you more freedom of choice and wouldn’t leave you in the lurch later if the manufacturer did go out of business. Certainly if you are worried about buying a car by one of the main manufacturers tied to one of the companies that is at risk such as Vauxhall or Ford, car leasing could put your mind at ease.
Whether you’re looking for a handy little car about town or a fancy new BMW, car leasing gives you a wider choice of vehicles including those that may otherwise have been out of your price range for buying outright. Your contract allows for your estimated mileage and normal wear and tear to the vehicle, so the value of the car will not decrease over time and when your agreement ends you get to swap the car for the new model of your choice. With the car industry in such a state of disaster, leasing could be the most effective method to ensure you’re not affected by any future surprises!
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