AM Online

Personal contract plan subscribers face negative equity

Thousands of cars on personal contract plans are being handed back to finance companies because the owners face negative equity.

People who bought prestige models have suffered the most because a nosedive in second-hand prices has meant they owe more than the car is worth.

According to a car magazine the shortfall for drivers across the country has reached £272 million.

Customers who buy cars on PCPs are quoted a future final payment but are not required to buy the vehicle at the end of the agreement.

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