Would YOU Buy a Vehicle From a Bankrupt Company?

@anniepa (27955)
United States
December 8, 2008 5:46pm CST
Let's play a game of "Let's Pretend" for a few moments here; let's pretend there isn't a heated debate going on as to whether or not any or all of the Big 3 Auto manufacturers should be bailed out. Let's pretend the economy doesn't totally suck, or at least it doesn't suck for you. Regardless of your REAL circumstances or intentions let's pretend you've made up your mind to buy a new vehicle. Despite your personal tastes or opinions or needs, let's pretend your preference is for a particular brand of vehicle and that the company that makes it has filed for Chapter 11 bankruptcy. Would you still buy that vehicle? There have been various commentators and politicians on different programs saying there wouldn't be any problem with GM, for example, filing for Chapter 11 to give them the opportunity to reorganize and rebuild. Some have cited the airlines, I think Delta was one mentioned, and have said that people continued to fly on these airlines that were operating under Chapter 11 and that they managed to come out of bankruptcy stronger than ever. Do you consider that to be a good comparison? For me, if I'm going to book a flight I'll have several factors to consider before choosing an airline - of course, the airline's safety record will be important, as will their fares and, obviously, the availability of flights to fit my schedule. Since I have some frequent flier points with several different airlines, that will also be a factor. Now, if I'm going to make the much larger purchase of a new vehicle there will be other things to consider such as will I be able to get parts in a year or so, will there be a place I can take it for repairs if needed and will my warranty be any good if something goes wrong. What about you? Do you think there's as good a chance an automobile company such as GM will be able to survive Chapter 11 as there was for an airline? I don't think so. Annie
3 people like this
17 responses
@suspenseful (40192)
• Canada
9 Dec 08
What would concern me is will I be able to get parts? The next concern would be would the warranty still apply, and who is in charge of the finances, and will I be able to get insurance. But what I would worry about was if there was an accident, or if there was something wrong with the car (like the steering wheel falls off at 10,000 miles) would I be able to get it rectified. If these questions are not answered to my satisfaction, I would skip buying the car and buy one from a company that is financially stable.
@anniepa (27955)
• United States
9 Dec 08
Excellent point about something being wrong like the steering wheel falling off. To anyone who may laugh at that idea, there have been many things like that happen to different vehicles due to some defect and there are huge recalls of certain makes and models all the time. There have been vehicles that have caught on fire, there have been brakes that have failed, wheels that have fallen off, all kinds of things and generally once it happens a time or two to a few unfortunate souls the company looks into it and they notify everyone who owns that particular vehicle to take it into the dealership or an authorized repair shop to be fixed. You're right, I'd definitely need to be guaranteed I wouldn't get stuck in the even something like that were to happen. Annie
• United States
9 Dec 08
I think the availability of parts would be a major point plus the fact that this would affect trade in or re-sell value of the automobile.
2 people like this
@anniepa (27955)
• United States
9 Dec 08
That's another good point about the trade-in or resell value. I have to add no matter what some may say about the availability of parts after a company goes out of business with a lot of today's newer vehicles some repairs and services almost have to be done at a dealership and even if there are other "authorized" places for repairs they may not be within a reasonable distance for some who may have bought their vehicle at a local dealership that no longer exists. Annie
@spoiled311 (5500)
• Philippines
8 Dec 08
hi anniepa! i am not familiar with chapter 11 because i am not from the united states. but whatever it is, i don't think there is anything wrong with buying stuff, a car or others, from a company that is going bankrupt. here in our country, some companies sell their stuff secondhand especially if they are closing. and you can get good stuff for less. so i think there is nothing wrong. it is actually helping the owner recoup some of its losses. take care and God bless you! merry christmas!
2 people like this
@anniepa (27955)
• United States
9 Dec 08
It's one thing to buy things from a store that's going out of business or a company that makes clothing, but a car is a bit different in my opinion. If the company ceases to exist eventually you may not be able to get parts for the car. Also, if the company goes under who's going to honor your warranty if something goes seriously wrong with it before it's even paid off? These are things I'd worry about and really need to be reassured I wouldn't be left out in the cold. Annie
@spalladino (17891)
• United States
9 Dec 08
Oh goody, I haven't played "Let's Pretend" since I was a kid! I would still be willing to buy from a company that is under Chapter 11 if I was also able to get an excellent deal in exchange for the warranty that might not be there when it's needed. Having the vehicle repaired and finding parts isn't that difficult, as others have stated, but I would want compensation for the warranty risk I would be taking.
2 people like this
@neuronic (242)
• Japan
9 Dec 08
First of all, let me state that this is my personal opinion, and you have been warned before further reading (no offense). Now about the reply: first off - buying a new car is the most idiotic investment, if you can even call it an investment. If you're living in the rural areas it makes sense, if you live in a city; it's kind of out of place to buy a car since there are ways to go anywhere by using public transportation. If you buy already used car in a good condition that makes sense, but unless you need it for business I don't see a point of buying a new car. What's more, I had one, sold it, and I'm never buying one again, at least not the one that runs on gas. When they start massively producing electric car (already happened once, but pulled out for political reasons), I will, surely, buy one IF I really need it. Otherwise it's just waste of money, space, and time.
@hildas (3031)
8 Dec 08
I certainly would by the car as it would be a bargin for me. It would help the owner also out and make him a few dollars also. I think a lot of companies are going to go bust this new year, especially the bigger ones and certainly the car buisness. It is all very sad though and I will pray for everyone.
@peavey (16936)
• United States
9 Dec 08
I would have no problem buying from a company that went bankrupt. First, they won't go out of business when/if they go bankrupt. That's only a way of getting out from under obligations they can't pay anyway. Secondly, as others have stated, parts have to be available for any vehicle manufactured for 10 years. Thirdly, if the parts are available, there will be mechanics to work on them. Number four: Prices will be lower on these vehicles, at least for awhile. As a matter of fact, it might be the best choice if you're in the market for a new vehicle.
1 person likes this
@mikeysmom (2088)
• United States
9 Dec 08
i do not know if i would or not. if i could get a really good deal on the vehicle perhaps i would. but then you have to ask yourself who will stand behind the vehicle if something goes wrong? i guess it is a matter of weighing your options just like with any other decision. i always buy american made vehicles so if my purchase would help things that would be a bonus.
1 person likes this
@anniepa (27955)
• United States
9 Dec 08
You're doing your part by buying American made vehicles. That's part of why the American companies are hurting, too many people have been buying foreign cars for decades now but on the other side of the coin Honda and Toyota, for instance, have been making very good and reliable vehicles that get excellent gas mileage for years. Also, many of the vehicles we think of as being "foreign" are actually made in the U.S. and some that have an American name are made in other countries. Annie
@lvaldean (1612)
• United States
9 Dec 08
Fundamentally Chapter 11 is not always a bad thing. It forces the organization into receivership with outside oversight. No more will the executive be able to pay themselves outrageous fortunes for bad performance, no more will the Unions have a chokehold, no more outsourcing if that makes bad business sense. Creditors get paid. The company continues to operate and generally overtime more profitably as under performing operations are either shut down entirely or sold off. Operations are consolidated and overhead chopped down to manageable size. Contracts are re-negotiated at better terms. Decisions are scrutinized not just by the BoD, but by the externally assigned Receivership Judge. Would I buy a car from a company in Chapter 11? Hades yes, the likelihood of that manufacturer staying in business, improving their business model and maybe even improving their cars is strong.
1 person likes this
@hnumeng (33)
• China
9 Dec 08
i wouldn't buy it. A bankrupt company couldn't supply any after service. Although i can get a vehicle with a low price,it means more likely i would spend more money in the future, if some parts from the vehicle only are made by the company are broken,no substitutes i can find in market. i lost more.
1 person likes this
• Philippines
9 Dec 08
Yes, why not? But if the price is good...
1 person likes this
• Philippines
9 Dec 08
A car from a bankrupt car company? No, a big NO. because where can I find a parts for that car if ever it get trouble, the warranty .?.
1 person likes this
@sunny0806 (248)
• China
9 Dec 08
Of cource not. I care about who will serve for repair after the sale. I don't want to waste time on these problems.
1 person likes this
@rin888 (74)
• Australia
9 Dec 08
haha good question, i am not from the states, so chapter 11 means nothing to me, but we have bankrupsty just like you do and i would consider buying a car from somewhere else, depending on the deal they wanted to offer, just because if anything happened to the car (if it was faulty and they prob knew bout it and didnt bother mentioning it) i wouldnt be able to go anywhere to complain now would i!?
1 person likes this
@bam001 (940)
• United States
9 Dec 08
I really don't think I would buy a vehicle from a bankrupt company. My reasoning is that if the company is bankrupt, who knows how much longer they will be in business --thus possibly affecting the warrantly on the vehicle.
@Bd200789 (2994)
• United States
9 Dec 08
I don't think so either. I know I wouldn't want a car from that company.
@bestboy19 (5478)
• United States
9 Dec 08
If the automobile industry could get the unions and the government regulations off their backs, maybe they could survive; but I'm not sure that's ever going to happen.
@anniepa (27955)
• United States
9 Dec 08
I'm very much in favor of unions, as long as their demands aren't unreasonable and they're willing to make some concessions in tough economic times such as right now. I think the UAW already has made some concessions and they say they're willing to make more, so that's a start. As for government regulations, we NEED some regulations, don't you think? Fuel efficiency and environmental safeguards are very important in my opinion not to mention safety. They took the government regulations off the backs of the banking industry and look where they got us! Annie
@bestboy19 (5478)
• United States
10 Dec 08
I'm opposed to unions. I believe they destroyed our steel industry and are now destroying our auto industry with their greed. I know the unions have made some concessions, but I heard that it wasn't permanent. I also believe that unions and the increase in the minimum wage are the reasons so many companies outsource. Why do you think the foreign auto makers, when deciding to build a factory in the USA, choose the south? The south are right to work states. Now for the government, have you ever known the government to get involved with something, that should be in the private sector, and it come out better than before they got involved? Schools are an excellent example. Before government got involved, children were actually educated, schools were allowed to discipline, and we didn't have teachers unions who are more interested in getting money for themselves than in the children's education. Now what do we have? We have children in high school who can't read, they don't know how to add or subtract without using a calculator, they don't have a clue about the government or where any state is, and police officers are roaming the halls because it isn't safe otherwise. Then there's welfare, how much personal responsibility has gone down the tubes because the government has taken it away from the people. And what about health insurance, before the government got involved, it was affordable. It's not affordable anymore. What about these environmental safeguards? I'll admit I enjoy the air being cleaner, but these green people take some things to the ridiculous, and the government, instead of going with the majority of the people, go with the green people and we pay billions for foreign oil instead of using our own and now food cost are going up because they want to change corn to fuel. I say the government should butt out and let the private sector do its own job. The government should protect us from our enemies, foreign and domestic, keep the roads in good working order, and take care of trades and tariffs. Some of us seem to forget that it's our taxes that pay for all these extras the government DOES? for us. As John Wayne said once, " the government never gave anyone anything."
@anniepa (27955)
• United States
10 Dec 08
Thank you for your well thought out response but I'm afraid we're going to have to agree to disagree on a lot of what you've written. Unions are far from perfect, the government is far from perfect (especially our current Administration!) but I don't blame them for all of the world's ills. Corporate greed is also to blame for many of our problems and workers need protection from employers who would take advantage of them in every way possible if they could. You're blaming government for the high cost of health care? It couldn't be greedy insurance or pharmaceutical companies, right? I'm all for personal responsibility but there are times when people need a helping hand and a safety net. Annie