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What happens when something like this happens?

What happens to the customers if a company like Chrysler , of GMAC were to fail. Meaning have to file bankruptcy, or just goes under completely. What happens to the customers who have there vehicles financed through them? Are they bought out by someone else? Does it change the terms of there contracts. Can they go up on there payments if they are on a fixed rate? Anyone know?

Answer Question
 
Anonymous

Asked by Anonymous at 11:14 AM on Jan. 5, 2009 in Politics & Current Events

Answers (7)
  • Can you even get a car loan that has an adjustable APR? I would imagine the government or bank would take over the loan and you would still have the same terms that you signed under. I would think worst case that another company would buy Chrysler or GM and assuming their debt and contracts (some they would be able to renegotiate). You would probably end up paying them.
    Anonymous

    Answer by Anonymous at 11:16 AM on Jan. 5, 2009

  • Most likely anything owned by the company would be sold like their loans to other people, mostly their own banks who they owe money to in order to pay for losses. Most of the time though companies like them file a chapter 11 I think its called and they restructure their business plan and keep running.
    gemgem

    Answer by gemgem at 11:17 AM on Jan. 5, 2009

  • Someone will buy the failed company's assets - which include the car loans. The terms of the contract can not be changed. But there may be months of confusion where you don't know where to send your payment. During this time, keep copies of every check. Take notes during every phone call - date, time, name of person you spoke to, what they said. If you don't know where to send you check and have not been able to find out, do not shrug your shoulders and blow the money. Set it aside and keep trying to find out who to send it to. At some point, someone is going to get upset that you haven't been paying and they will want all the missing payments in one lump. If you have blown the moeny, you may lose your car.
    kaycee14

    Answer by kaycee14 at 12:12 PM on Jan. 5, 2009

  • The loans are sold to another company. Your terms of the loan should remain the same.
    Tetona

    Answer by Tetona at 1:40 PM on Jan. 5, 2009

  • Sugar Daddy Warren Buffet will take care of us all. Pretty soon it will be the US of Warren's A
    Anonymous

    Answer by Anonymous at 1:56 PM on Jan. 5, 2009

  • I like Warren Buffet. He's the man! So bad off Anon 156 pm.
    Anonymous

    Answer by Anonymous at 1:57 PM on Jan. 5, 2009

  • Yeah, you'll still have to pay.Most car loans are financed through a fiance company that is seperate from the actual car manufacterer. So even if let's say Ford goes bankrupt, that doesn't mean Ford Financing will. They are 2 different companies.
    Oliviasmommy131

    Answer by Oliviasmommy131 at 6:21 PM on Jan. 5, 2009

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