Would an automobile company being in bankruptcy affect your decision to by a vehicle from them?
Heathen asked:
Would you be less likely to buy from one? Would you totally rule out buying from them? Would it not affect your decision at all?
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Would you be less likely to buy from one? Would you totally rule out buying from them? Would it not affect your decision at all?
May 13th, 2010 at 12:07 am
It depends on the availability of repair parts and if I can purchase a warranty from a solvent car manufacturer.
Otherwise, it would take a huge reduction in price to entice me to purchase a car that may not have a warranty in a month or two. ranger_co_1_75
May 13th, 2010 at 11:57 am
The only question I would have would be concerning the warranty. If in the bankruptcy there is a provision for guaranteeing the warranty, then I would buy from them
The reason to declare bankruptcy for the car companies is so they can renegotiate the labor union contracts. Worldly25
May 13th, 2010 at 11:12 pm
A car company filing for bankruptcy is reliant on one truth… they are lacking in sales. If they can’t see their cars, they can’t produce revenue, expenses exceed revenues, and viola bankruptcy. Obviously it’s not that simple but you get the picture. Now the reason for the lacking sales is the key, are they making sub par vehicles? are the newly designed cars unappealing to the masses? or the more likely cause, are they simply losing their market share because of increasing competition?
It’s also important to remember that a bankruptcy in the car industry with a corporation the size of General Motors for example, will never cause it to completely disappear. If it ever came to the point of bankruptcy (which it won’t) more than likely the next able competitor will simply buy out their interest in the market. A name like General Motors is to big and waaaaaay to recognized to simply sell off their assets and call it a quits.
Just remember that this so called “bail out” of the car industry is only publicized because the big banks are unable to give out loans this size for the next few years. Companies like General Motors, Ford, and even Toyota are always taking out large loans to cover them selves but it’s not usually loaned out by the Government.
I wouldn’t let the media influence your decision on buying your next vehicle. If you find a vehicle that is practical and affordable for your lifestyle buy it, domestic or imported.
If nothing else remember this…
Believe half of what you see, and none of what you hear. Ray
May 15th, 2010 at 11:40 am
I would not be less likely. Taking GM as an example, Magna and Delphi make a lot of the parts for GM, so i wouldn’t be worried about getting parts. If GM files for chapter 11 that’s actually “Bankruptcy protection” and prevents creditors from taking over the business and selling it off. So they likely would still be able to offer a warranty. And if they were able to restructure and not be so diluted, they would make better cars because they wouldn’t spend as much energy and time on making the same car look different for 3 or 4 different brands.
I think i would likely buy a car from them after the restructuring took place because they will be in a better position to make better quality cars. G6er
May 16th, 2010 at 11:22 am
No! Filing Chapter 11 gives the company a chance to recover, renegotiate their labor contracts, file a plan for solvency, issue new stock. Ford and GM will not go under totally. They can’t afford to walk away from the warrantees. iluv2tradestks