Michael Challiner asked: Experts have warned that due to plunging car prices thousands of motorists are in 'negative equity' on their vehicle loans. It means many car buyers are in similar positions to those whose mortgages are bigger than the value of their home. Altogether the total amount that is owed on car loans and the value of the vehicles could be as much as 272 million.If you have bought your car on a personal contract purchase (PCP) finance deal the problem is a lot worse. The total amount owed last year was 2.13 billion pounds. These contracts usually involve making a series of monthly installments. You then make a final payment after two years to secure ownership of the car. This is based on what the vehicle is predicted to be worth. Read more [...]