Dealers have given a broad welcome to the Bank of England cut Interest Rates to 4%.
The cut, from 4.25%, is the fifth the BoE has announced since August last year.
Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA) representing car and commercial retailers across the UK:
“As expected, the Bank of England has once again decided to cut interest rates after holding at 4.25% in June.
Previously, the BoE cut interest rates in February to 4.5% and again in May to 4.25%. NFDA welcomes this decision as it will continue to help ease pressure on both consumers and dealers.”
The decision to ease the rate comes at a time of volatility for many dealers, reflected in the booming used car market.
Philip Nothard, Insight Director, Cox Automotive: “As is often the case during periods of economic uncertainty, the UK used car market has seen a rise in popularity.
SMMT CEO Mike Hawes said: “The latest SMMT data out this week tells a story of two halves.
“On the one hand it shows a used car market surging ahead, with four million first-half transactions marking a welcome return to pre-pandemic levels.
“On the other hand, new car demand stalled, with the market posting its weakest July since 2022 and more moderate EV growth compared with the recent trend.”