GM Bankrupt: What Could Happen to Your Car?

With auto industry powerhouse GM facing bankruptcy,car owners are shaking in fear about the vehicles they own. It's pretty normal tofeel some concern whenone of the Big 3 hits rock bottom; however, experts are saying there's nothing to worry about just yet.

Why Are People Feeling Afraid?
The word "bankruptcy"immediately instills fear in people because it represents financial failure and an inability to function as once before. However, when huge companies like GM face this issue, it usually means they're tweaking some things and need help from the government to do so.

However, since it is known that GM wants to sell off some of their cars, owners are wondering how this will affect them. Here are a few concerns:

• There will be no parts available. If you're concerned that no parts will be available to repair your GM car, don't worry. Plants will remain open so parts will still be available.
• No services will be available. Dealer mechanics as well as your local mechanics will still be available to work on your car.
• Warranties won't be valid. The government has stepped in to make sure manufacturer warranties are guaranteed. And while dealer warranties carry a lesser guarantee, experts still say not to worry because GM will likely not liquidate.

So Is There Anything to Worry About?
Well, if a company is facing bankruptcy, there is always a good reason for concern. Here's why:

• Your dealership may close. While the entire companymay notclose, the dealership you work with could. This means you might have to find a new location to address your issues.
• Your car might depreciate faster. When you buy a car from a troubled company, you face the car depreciating up to 30% after driving it off the lot, versus the regular 20% you're used to.

But I Want to Buy a GM Car!
If you love GM cars, you can still buy one. However, experts suggest that you conduct tons of research to buy one of the 10 out of 41 models that Consumer Reports recommends. Also, it's good to make sure you obtain manufacturer-backed, extended warranty.

GM facing bankruptcy isn't the end of the world. So don't panic if you own or want to own one of these cars. As long as you're smart when making purchases and keep a watchful eye on what's happening with the company, you'll be fine.

Are you more or less likely to buy a GM now that you know bankruptcy is imminent? If you're looking for a low rate auto loan, Go Banking Rates can help.