Sue Robinson, director of the RMI’s National Franchised Dealers Association (NFDA), welcomed the reduction.
She said: "The Bank of England is giving the economy chance to recover. Retailers, including car dealers, have felt the crunch during the last few months, and although last year’s car sales figures were up, the outlook remains uncertain unless interest rates come down, and stay down.
"Consumers face rising costs including above-inflation rises in household costs, as well as the need to pay off debt. All of these costs have impacted on consumer spending, which has a knock-on effect on business."