Any relief to be had?
Published 11th March 2009
With UK interest rates now at their lowest rates since 1951, is there any relief to be had for the motor trade?
Banks and building societies are coming under pressure to pass rate cuts on to their mortgage customers but where’s the joy in that for the car trade?
With the vast majority of cars bought through finance it’s the lack of liquidity – not the rates – that is blocking these vital finance lines.
Although mortgage rates may start to drop, freeing up a bit of extra disposable income in many UK households, the availability of unsecured funds – the lifeblood of the motor industry – remains so far totally unaffected by Mr Darlings’ aggressive rate cuts.
Meanwhile, PriceWaterhouseCoopers has issued a report suggesting that in spite of the downturn, UK consumers are still “credit hungry” and are still prepared to borrow. Perhaps this continued clear demand will, at some point, start to influence supply in 2009?
With the vast majority of cars bought through finance it’s the lack of liquidity – not the rates – that is blocking these vital finance lines.
Although mortgage rates may start to drop, freeing up a bit of extra disposable income in many UK households, the availability of unsecured funds – the lifeblood of the motor industry – remains so far totally unaffected by Mr Darlings’ aggressive rate cuts.
Meanwhile, PriceWaterhouseCoopers has issued a report suggesting that in spite of the downturn, UK consumers are still “credit hungry” and are still prepared to borrow. Perhaps this continued clear demand will, at some point, start to influence supply in 2009?
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