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DAL208
16th Jan 2009, 11:41
I have a Honda, its 8 months old and i got it on one of those finance deal things. Put a deposit down, then pay x amount per month for 3 years, then after 3 years is up you can either pay a fixed amount for the car and its yours or you can just give it back and oay no more.
What happens if honda went under? I appreciate this is unlikely...but with news today of cutting of production it just got me thinking....
I'd imagine if the administrators took over, they wouldnt exactly want the car back itself...who would buy it? they would just want money...so surely would just want me to keep on paying?
It reminds me of when northern rock almost went to the wall and people were worried abut their mortgages...surely if your mortgage company went under that would be a good thing??? I know, im rubbish at this stuff am sure the last thing i want is for honda to go bust....

P.s i appreciate, obviously, that if honda did go under...there would be an awful lot of people worse off than me...im just curious...

Effluent Man
16th Jan 2009, 11:47
They won't go bust,it's just a production cut back.

Standard Noise
16th Jan 2009, 14:57
Ah well, less coffin dodger chariots on the roads then. Oh no, sales of tartan blankets will plummet!:sad:

Captain Stable
16th Jan 2009, 15:16
less coffin dodger chariotsAhem!

"fewer coffin dodger chariots", if you please. Thank you. :)

Desert Diner
16th Jan 2009, 15:44
...so surely would just want me to keep on paying?


Are you thinking of renegotiating your payments if such an unfortunate event occured?

Standard Noise
16th Jan 2009, 15:52
Sorry:sad: not at my best after a nightshift.

G-CPTN
16th Jan 2009, 15:54
DAL208, You will find that your contract is not with Honda Motors (Japan) or even Honda Motors (UK), but with a finance company who have already paid Honda UK for your motor car. It's just like borrowing money from a bank in order to buy your car . . .

Captain Stable
16th Jan 2009, 15:55
No worries, StdN. I assume that, like me, you are short-selling Edinburgh Woollen Mill shares? :E

BoeingMEL
16th Jan 2009, 15:57
Yep G-CPTN is spot on... your agreement is with the finance company... the dealer has had his . bm

DAL208
16th Jan 2009, 16:02
Yeah thats what i thought...although my payment every month goes to 'Honda Europe Ltd'. But yeah, i guess the 'agreement' is with the finance company so wont change anything.

airfoilmod
16th Jan 2009, 16:03
And Boeing Mel. Correct, but there's more. Depending on how many units the lender floors for Honda, the price paid to Honda was less than the owner paid. How much less? Again, would depend on the volume of underwriting.

AF

Wait, just read Dal's latest. Honda may floor their own. If they do, similar to General Motors in the US, they have a separate, banking entity, and this is degrees of bad depending on what your position is on another thread, Doom and Gloom, above, AF

Desert Diner
16th Jan 2009, 16:12
...although my payment every month goes to 'Honda Europe Ltd'.

Actualy your agreement is with Honda Europe Ltd. and therefore Honda.

The borrow funds from others sources to enable them to finance the sale to you. This is how they can sell you vehicles with attractive terms. Dealing directly with a finance company or bank would normaly require a significant down payment and higher interest rate (things that could reduce the number of cars sold).

Providing attractive financing is the main reason car makers can keep their sales up.

GM used to do this in the US through GMAC. Once GMAC's ability to borrow money dried up, so did GM's ability to sell cars, and you can guess the rest of the story. Same for Ford and Chrysler, and now it apears, for the rest of the worlds car makers.

airfoilmod
16th Jan 2009, 16:15
GMAC has recently acquired several billions in TARP dough and a banking LICENCE, what say you about that, my friend.

AF

Desert Diner
16th Jan 2009, 16:31
My "dear" friend, that would mean they can start offering financing once more. The problem now is that thanks to the economy and the uncertainty of the future of GM, people are still hesitant to buy.

Now get off that little horse of yours called Sarcasm, and make your point.

airfoilmod
16th Jan 2009, 16:42
I did not mean my post as a challenge, or even wry. My feeling is that banking has gotten a little too common. That is my point; made?

AF

(As in, First National Bank and Pizza Parlor, no?)

Lon More
16th Jan 2009, 16:42
As SN puts it a reduction in the number of coffin dodgers on the roads is possible. although this didn't seem to happen when Rover folded.

Knock on effect in the caravan industry and the woolly hat and stringback gloves trade as well.
On the plus side the above should all led to a general improvement in the mental ans physical wellbeing of the rest of the road users.
Let us hope that Mercedes/BMW/VAG follow this encouraging trend. :E

DAL208
16th Jan 2009, 17:29
so.....what happens to me then if they go under??

Desert Diner
16th Jan 2009, 17:56
so.....what happens to me then if they go under??

Your note will be treated as an asset an may be transfered to one of their creditors or consolidated and sold off by the bankrupcy administrators to some investor in order to generate cash. Either way, you had better continue to pay it on time or they may come and take your car away.

In the extreme situation that they sell that they sell your note to some of the more agressive lenders that are still in business, then you had better make sure that your payment is recieved exactly on time or you may find your T&C changed.:=

Nevertheless, the only chance of Honda or Toyota going under is just under the demise of the world currency systems.

OFSO
16th Jan 2009, 18:47
so.....what happens to me then if they go under??

Why it's obvious - you'll have to move away from Eastbourne !

DAL208
16th Jan 2009, 19:41
Haha...for the record its a lovely civic...not old man-esq in the slightest!

The payment goes out by direct debit same date each month and i earn more than enough to pay for it as is...so thats not the worry...i just couldnt afford to pay for the whole car at once...if that makes sense...

WG774
16th Jan 2009, 19:47
Ah well, less coffin dodger chariots on the roads then.

Yeah. Those pesky NSX drivers are always holding me up.

Effluent Man
17th Jan 2009, 08:17
Who you owe the money to generally depends on if you buy a new or second hand car.Almost all used car deals will be with a finance company so you owe them. New cars however are often financed directly by a separate company that may be a wholly owned subsidary of the manufacturer.This allows them to source funds globally at the lowest rates.It's how people like Citroen always offer 0% on their cars

Desert Diner
17th Jan 2009, 09:43
...i just couldnt afford to pay for the whole car at once...

They can't make you do that to you.

Just as you can't renig on the agreement, neither can the owner of the note. It's only if you default that they can try to screw with you.

DX Wombat
17th Jan 2009, 11:11
What happens? Well around here the local drug dealers will have to find another make of car as their method of transport.
NB I am NOT saying that all drivers of Honda vehicles are drug dealers, merely that it is a very popular car with local ones.