Dealer trade body the National Franchised Dealers Association (NFDA) gave the thumbs up to the Bank of England move to hold interest rates at 3.75% for a fifth consecutive meeting.
It said the move offered “greater certainty” for dealers who have been hit by higher costs, inflation and increases in employer National Insurance rates and cost of employing staff.
Sue Robinson, chief executive of National Franchised Dealers Association (NFDA), said:
“Holding interest rates gives businesses some much-needed certainty, but the Government now needs to focus on keeping inflation under control while creating the conditions for the economy to grow.
“Although borrowing costs have eased from their recent peak, they remain higher than they were 12 months ago, meaning affordability continues to be a key consideration for motorists looking to purchase a new vehicle. A steady interest rate environment also gives franchised retailers greater confidence to invest in their businesses.”
Philip Nothard, Insight Director, Cox Automotive Europe said the 3.75% hold was “unsurprising” but added that affordability pressure hasn’t gone away, and the new government’s stance on the ZEV mandate and eVED is still yet to be confirmed.”
