Credit crunch hits UK motorists

The financial turmoil has been headline news for some time now and it looks like it will be effecting UK drivers who have existing finance deals in place. Those who have a PCP (or personal contract purchase as it is also known) deals on their cars will have agreed to make a final balloon payment at their fixed repayment term in order to keep their vehicle. What has happend is that the amount that they are required to pay is now looking to overvalue most cars quite considerably. This guaranteed future value that the finance companies predict in advance is based on what the market value is likely to be at the end of the deal. The general slump in the UK car market though has resulted in these estimates being way of the true value. This will leave a high percentage of UK motorists having to simply hand the keys back at the end and start again.