General Motors, one of the world’s largest carmaking companies, has filed for bankruptcy with the American government. For generations General Motors (GM) has been one of the three largest producers of cars in America as well as one of the world’s biggest car companies. Now the motoring industry is really struggling, and two out of the three big American car giants have already been forced to ask the government for protection from their creditors. 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 own a car made by GM, you don’t need to worry about the possibility that you might not be able to get parts for it in the future, as the company has not gone out of business entirely. After receiving protection from the American government, they hope to be through the worst of it in as little as three months. In addition GM Europe, which is responsible for Vauxhall and the German brand Opel, has already been sold off to 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 contract allows for your estimated mileage and normal wear and tear to the vehicle, so your car won’t decrease its financial value over the course of the contract and when your agreement ends you get to swap the car for the new model of your choice. While the car industry is struggling to stay afloat, leasing could be the most effective method to ensure you’re not affected by any future surprises!

Tags: BMW car leasing, car leasing, contract hire, ford car leasing, general motors, GM

This entry was posted on Wednesday, July 1st, 2009 at 6:38 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.