How will we be affected by the General Motors bankruptcy?

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 big three car manufacturers in America and one of the largest in the world. Now the motoring industry is really struggling, and of the three biggest car manufacturers in America two have now been forced to seek protection from their creditors by declaring themsleves bankrupt. But what effect will this all have on us?

Well, for those of us in the UK, the answer is probably not much. If you have a car that was 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. With the financial protection of the US government, they hope to be through the worst of it in as little as three months. In addition GM Europe, which consists of the British brand Vauxhall and the German 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 agreement takes into account your projected mileage and wear and tear, so your car won’t decrease its financial value over the course of the contract and at the end of your contract you can simply trade it in for the upgrade of your choice. While the car industry is struggling to stay afloat, it could be the best way to make sure that any future disasters don’t affect you too much!

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