The
credit crunch has affected the
car sales and
motor finance industries in a number of ways. According to a
recent industry barometer,
car dealers are less confident in their
business than they were three months ago.
Problems in the
housing market have spread to other sectors, and the
Motor Trader Franchised
Dealer Barometer finds that just 6 per cent of car dealers
expect a good year ahead.
With
interest rates remaining high, as the
Bank of England curbs inflation, the car sales market may have
a rough ride ahead. The director of the National Franchised Dealers
Association, Sue Robinson, was reported as commenting:
Reductions in interest rates, efforts to stabilise fuel costs
and clarification over the cost of
motoring are all within the government’s remit and we
urge it to look into these areas urgently.
Experts said that consumers could be putting off purchasing a
new car due to lack of disposable income.
