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.
Stoneacre Financial Services (SFS) is preparing to buck the interest rate trend to make car finance more attainable for non-prime customers.
Automotive finance companies may be hit harder than car dealers by rising inflation & interest rates and falling consumer confidence
The NFDA has welcomed the Bank of England’s decision to leave interest rates at 0.25%, stating that it “protects the interests of our industry”.
UK interest rates have been cut from 0.5% to 0.25% to the lowest level recorded.
NatWest has written to businesses to warn it may have to charge to accept deposits if interest rates are cut below 0%.
