According to reports in the
car finance news, thousands of drivers throughout the UK who
purchased
cars on
hire purchase schemes are in
negative equity, and are passing cars back to
finance companies .
The second-hand values of many higher-end
second-hand cars have slumped, meaning many
car finance customers owe more than the car is worth. The
shortfall stands somewhere around £272 million, according to
Auto Express.
The
Finance and
Leasing Association, who represent
car finance companies around the UK, agreed that thousands of
drivers were passing cars back to finance companies rather than
paying way over the odds for the
vehicles .
An
AA spokesperson reportedly commented: They should be
approaching the finance house as well as the dealer to see what the
options are. These could be very expensive cars and the losses
could be crippling because of the change in the financial
world.
