Is your car your pride and joy, or are you ready for a change? Let us know and you could win a £300 John Lewis voucher | No thanks

Car sales increase 'will continue if interest rates drop'

Mon, 07 Jan 2008
A motoring body has claimed that sales of new cars will continue to grow so long as interest rates fall in 2008.

The Retail Motor Industry Federation (RMIF) reports that there were some 2.4 million automobiles sold in the UK over the course of 2007.

But this 2.5 per cent hike on figures from 2006 will be sustained only if the Bank of England can bring down the base rate and with it household costs, it added.

Director of the group Sue Robinson stated that consumers "weathered the economic storms" during 2007, but things will need to change this year.

She said: "Interest rates must come down in 2008 for this level of demand to continue ... Current rising household costs will have an impact on other major purchases."

Consisting of a number of smaller automotive bodies, the RMIF is the trade body of the motoring sector.ADNFCR-1081-ID-18416290-ADNFCR


Add a comment


Ask Honest John

Value my car

Amount to borrow
Sorry. The minimum loan amount is £1000
To pay back over

My credit score

Best available rate 9.20%

Total repayment £8,930.17

Total cost of credit £1,430.17


48 monthly payments

Apply now

Representative example

Borrowing £7,500 over 4 years with a representative APR of 25.4%, an annual interest rate of 25.4% (Fixed) and a deposit of £0.00, the amount payable would be £239.77 per month, with a total cost of credit of £4,008.96 and a total amount payable of £11,508.96.

CarFinance 247 Limited is acting as an independent credit broker

Universal Square, Devonshire Street North, Manchester, M12 6JH