The Bank of England has announced a rise in interest rates from 0.5% to 0.75% following a unanimous decision by its Monetary Policy Committee.
Car dealers have started rethinking their lending panels as economic pressures start to spark a reduction in the number of customers meeting “prime lender criteria”.
Inflation rose to a six-year high of 3.1% in November as retailers struggled against a squeeze on shoppers finances in the run-up to Christmas.
Automotive finance companies may be hit harder than car dealers by rising inflation & interest rates and falling consumer confidence
Threats to car finance firms and demand for new and used cars have been highlighted once again after the Governor of the bank of England warned that inflation might peak at over 3% next month.
The Consumer Prices Index – which measures changes in prices – fell by 0.1% in the year to October 2015, according to the Office for National Statistics.
Automotive Management Live: Where franchised and independent dealers will find everything they need to know about operating a modern showroom and service and repair facility fit for the digital age.
When: November 12 2020
Where: Birmingham NEC
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