August 26, 2008 - Ford Expedition Resale Values
Ford Expedition resale values have plummeted in the past 12 months, with the blame falling squarely on the rising price of gasoline. Demand for larger vehicles, partiularly SUVs, is falling rapidly, as people move to reduce their gas consumption. The value of a three-year-old Ford Expedition has fallen 12.2% since July last year, to just 32.48% of the value of a new vehicle. Given that oil prices are not likely to fall in the near future, Ford Expedition resale values are likely to remain depressed for a long time.
The Problem With Falling Ford Expedition Resale Values
Lower Ford Expedition resale values create a major problem for Ford Expedition owners who have financed their Ford Expedition. When the time comes, the residual payment on the vehicle finance may actually be greater than the amount the vehicle owner could get by selling the vehicle in today's market. In order to keep your Ford Expedition under those circumstances, you are going to need to refinance.
Refinancing when you are upside down on the vehicle can be difficult. Even though your Ford Expedition is a high quality vehicle and should arguably be worth more, the finance companies are only going to take into consideration the Ford Expedition resale values that are showing in today's marketplace.
What To Do If You Are Affected By Falling Ford Expedition Resale Values
If you have been caught by falling Ford Expedition resale values, you will need to get a little creative with your auto refinancing. A refinancing professional can help you to find a way to refinance your Ford Expedition, even if resale values have moved against you.
One good option, if you own your home, is to refinance your Ford Expedition as part of a debt consolidation mortgage refinancing. This will have several benefits beyond simply overcoming the issue of Ford Expedition resale values.
First and most importantly, Ford Expedition resale values will no longer be an issue for your refinancing. With a debt consolidation refinancing, the loan is secured by your home, not by your Ford Expedition.
You will usually benefit from a lower interest rate on your finance, as well. Loan secured by real estate are considered lower risk than loans secured by vehicles, and therefore lenders charge lower interest rates.
Ford Expedition Resale Values - Wider Effects
Ford Expedition resale values are, of course, just one example of the wider problem. Vehicle buyers use resale values as an indication of the quality of a vehicle, which means that the fall in Ford Expedition resale values is likely to impact on the demand for new Ford Expedition vehicles as well - a double whammy with the fall in demand as people adjust their driving habits to compensate to higher gas prices at the pump.
Ford Expedition resale values are a matter of great concern to all Ford Expedition owners, but particularly those who are close to the end of their vehicle loan. If you want to keep your Ford Expedition, you will need to find a way around the problem of falling Ford Expedition resale values.
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