The Bank of England (BoE) has confirmed that interest rates will rise by 0.25%, from 4.25% to 4.5%, the twelfth consecutive rise since December 2021.
"Today's anticipated decision by the Bank of England (BoE) to raise their interest rates by 0.25%, to 4.5%, will inevitably have implications on consumer spending habits, but franchised dealers will be factoring this into their sales processes and price points, whilst offering finance options to support affordability and consumer budgets" said Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA) which represents car and commercial retailers across the UK.
"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."
About the RMI
The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.