The decision by the Bank of England to raise their interest rates by 0.25%, to 4.5%, will inevitably have implications on the motor trade, according the car dealers’ body.
The Bank of England has confirmed that interest rates will rise by 0.25%, from 4.25% to 4.5%, the twelfth consecutive rise since December 2021.
Sue Robinson, Chief Executive of the National Franchised Dealers Association representing car and commercial retailers across the UK said, “Franchised dealers will be factoring this into their sales processes and price points, whilst offering finance options to support affordability and consumer budgets.”
Cars are still a necessity to many and registration figures for the first quarter of the year suggests that demand from customers is robust and the market is in a state of recovery.
“The used car market remains in a position with high values, new cars and finance options will still be a favoured avenue for many motorists.”