| Second Hand Car Prices |
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Second hand car prices continue to fall and many owners now find themselves locked in negative equity on car loans they took out on their vehicles. This leaves many owners in the impossible position of needing to sell the car to meet car repayments, but not being allowed to sell the car because of those car repayments, because the finance company wont let them. This has led to an increase in the amount of cars hitting the second hand market with outstanding finance on them. Of course the big gas guzzlers such as the Land Rovers and Range Rover have seen their value plummet through the floor. However the smaller more economical cars have not seen their values fall that much if at all. This is because there isn't the volume of new models coming down from above. What we mean is that if the new cars are not selling, they are sitting in a huge car park somewhere waiting to go to the forecourt. Now because they are not hitting the market, and the much older cars are being scrapped at the other end, there is a shortage of those cars in the middle. So whenever there is a shortage of something, the value holds firm. |