NFDA COMMENTS ON LATEST RISE IN INTEREST RATES

The Bank of England (BoE) has confirmed that interest rates will rise by 0.25%, from 5% to 5.25%, the fourteenth consecutive rise since December 2021.

Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents car and commercial retailers across the UK commented:

“Interest rates have once again risen in a bid from the Bank of England to curb inflation and stabilise the economy. Whilst this may have a broader impact on consumer confidence, and personal finances by encouraging saving, purchasing vehicles and the freedom of transport will be a necessity for many. Therefore, franchised dealers will continue to offer the best price points and payment schemes to support motorist’s shifting spending budgets.

“As new electric vehicles still remain at a price premium in the market, there is a chance demand will dampen as the cost of borrowing increases.  Electric Vehicle Approved (EVA) retailers will continue to promote the message that used EVs remain as viable alternatives to new EVs and helping subvert common misconceptions such as battery degradation, and anxieties around range.”