General Motors, one of the largest car manufacturers in the world, has filed for bankruptcy with the American government. For as long as cars have been around, General Motors (GM) has been one of the three largest producers of cars in America as well as one of the world’s biggest car companies. Now the motoring industry is really struggling, and two out of the three big American car giants have already been forced to ask the government for protection from their creditors. But what does all this mean to us?
Well, for those of us in the UK, the answer is probably not a lot. If you own a car made by GM, there’s no need to worry about the future of your car and any parts you may need, 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. In addition GM Europe, which is responsible for Vauxhall and the German brand Opel, has been bought by a Canadian company who have said they will do all they can to protect the 5,500 UK jobs at stake.
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 that any future disasters don’t affect you too much!
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