ziggy29
Moderator Emeritus
Technically, yes. But at that point it's basically a shell game. If I took out a $25K car loan and then proceeded to get a $25K home equity loan to pay off the car loan, my car loan *is* paid off but it doesn't mean my balance sheet is any better; I still have a $25K debt liability either way.If it was originally funded with borrowed money, and then used to repay the loan, the loan is still repaid.
So that would mean that GM wouldn't be any better off financially for having paid this off if they used other borrowed money to do it (other than possibly repayment terms or interest rates).