Is it Safe to buy a ‘Big Three’ Car Right Now?

For those of you who find yourselves in the position to purchase a new automobile, you may want to look to another company than an American automaker right now until further headway and progress is made with the fall of the ‘Big Three’ automakers in the United States. Now there are some who would say this is preemptive, and that more Americans need to buy more American made cars and trucks. But from a personal perspective, there is much to consider before you make your decision on whether or not you should hold off on buying that new GM, Ford or Chrysler car. As of right now, senate has repeatedly shot down any bailout funds for the ‘Big Three,’ making their financial indisposition even more despairing. And, if action is not taken soon, and I mean within the next three months at most, GM and Chrysler could find themselves on the corporate bread line, begging for a handout; not that they are not already begging for a handout from congress to stay afloat. Why the ‘Big Three’ are Hurting The major American auto makers are hurting for a number of plausible reasons. One: they overproduced far too many vehicles because of shoddy contracts that hold them financially liable to the United Auto Workers Unions. Two: the economy has slowed consumer spending and purchasing of cars, causing a surplus in inventories. And three: the car makers never slowed down their production of cars, causing an even bigger surplus—this combined with poor management and bad corporate structure has placed the major auto makers into a pretty precarious situation. What Happens if They Go Out of Business? If the big three auto makers do fall into the sinkhole where there is no point of return, massive international financial fallout will directly follow in the wake of their demise. Millions of consumers who already own a Ford, GM, or Chrysler made vehicle will wake up and realize that their vehicle now has no warranty, is worth less than half of what it was a day ago, and is nearly impossible to sell. Imagine a world where you paid thirty thousand dollars for a new Ford truck, and with interest on that loan you will pay back around, say thirty five thousand dollars. Then, you find out that the manufacturer of the car, that you just purchased and are tied to a lengthy auto loan with, has gone out of business. Now your car is worth less than half of what you owe. Even if you pay it off in full, you still lose your butt. And the warranty is useless, so any and all repairs, covered or not, is now your obligation. Who is Left Holding the Bill? We the American taxpayers are left footing the bill for this mish mash. Hundreds of thousands of people who are left jobless in the wake of this tragedy will have no other choice but to collect unemployment. The banks lending out on auto loans will have far less business and will layoff employees. And good taxpayers like you and me, will be left with a chunky fat tax bill to pay, one that last a good deal longer than a decade, at best!