So What If GM Goes Bust. Let’s Just Hope You Don’t Own a New GM Vehicle.

There is more to worry about if GM goes bust. Sure, nobody likes yet another bailout but the repercussions in job losses will rocket through not only the car company but all the suppliers, local economies, GM dealers, and so much more.

But here is a subject that I have not heard talked about. If GM goes bust and you own a GM car or truck then your car or truck will immediately become worth less, a lot less. If GM no longer exists then warranties are gone, dealers are gone, a deep supply of parts is gone and along with that goes the value of your now defunct GM manufactured car.

This will spell real trouble for anyone who has financed and still owns a GM car or truck when the value of the ride plummets but the loan remains at the current amount due. You will instantly become upside down in that loan without any way to escape it.

All of this happened a couple of years ago when Rover in the UK went bust. Owners were instantly stuck with a nice car with nothing behind it. If you wanted to buy a Rover car you still could, but why would you want to invest in an unsupported ride? Take a look at what many of the old Rover dealers are doing now. When you visit their sites you won’t find a mention of Rover support or service anymore.

So before you start gathering wood to build torches to march on Washington against yet another government investment in our quickly sinking economy, just hope that you are not drive a GM, and oh yes, a Ford.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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