The Big Three automakers said anew on Thursday that bankruptcy wasn't the answer, as did an official of the United Auto Workers who called the idea unworkable and even dangerous. The car companies argue that no one would buy a vehicle from a bankrupt company for fear that the company might not be around to honor warranties or maintain a supply of spare parts. By DEB RIECHMANN, Associated Press Writer
No one will buy a car from a bankrupt company. The truth is no one will buy a car when they don’t have a job. However if they could afford to buy a car the fact that the company is in bankruptcy does not mean you can’t get parts or service. There are lots of repair shops out there to do the job if all the dealerships close. If there is a market for parts for cars someone will produce “after market parts” to fill the need.
Bankruptcy does not mean the end of the car companies. Look at the airlines for example, we have seen many of them fill for bankruptcy. They reorganize and are back in business. Sometimes it is the only way a company can restructure their debts and reorganize the way they run things.
The problem is getting cars sold. To do that you need two things, credit to borrow money and job security to make you willing to take on the payment. If you don’t have these you are not going to buy a new car even if the company isn’t bankrupt. Remember there are lots of good inexpensive used cars out there. If you are looking for a way to get to work or school a car is just a car new or used.