How Will All this Auto Bailout help or hurt bankruptcy filers?

[CoCoChanel]

Some of us have leased cars, some of us bought new cars, some of us have revolving credit cards, some of us have new credit cards. Some of us were able to keep our houses barely, some of us lost our jobs and some of us have all these problems combined. How much worst can it get? Someone actually told me that if the auto industry goes under and has to file bankruptcy, if folks have cars, they are not sure where we will be able to get them fixed, where we pay our car notes, or just what the heck will happen. Anybody got any news on that?

[banca rotta]

Some of us have leased cars, some of us bought new cars, some of us have revolving credit cards, some of us have new credit cards. Some of us were able to keep our houses barely, some of us lost our jobs and some of us have all these problems combined. How much worst can it get? Someone actually told me that if the auto industry goes under and has to file bankruptcy, if folks have cars, they are not sure where we will be able to get them fixed, where we pay our car notes, or just what the heck will happen. Anybody got any news on that?

Some of what you are mentioning such as the "notes" are assets of the financial division of the car company. Their shares in their credit services such as GMAC will be sold off to another financial company as an asset if they go through a liquidation.

Someone else will probably buy the parts for pennies on the dollar and so on.

I think the warranties will vanish since this is more of a liability.

The sale of the above assets will make sure the employees get paid probably their last check and the rest will go to creditors, with unsecureds on the back of the line.

The huge flood of unsold cars and trucks will probably hurt the other auto companies since these will be sold at basement bargain prices.