FEBRUARY’S car sales drop was not unexpected, but with consumer confidence still fragile, the Bank of England would have been better advised to cut the interest rate rather than hold at the current level, believes Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA).
The comments came as interest rates were held at 5.25 per cent today by the Bank of England. The rate was reduced last month from 5.5 per cent. In February, 69,610 new cars were sold, 5.4 per cent down on 2007.
Robinson observed: ‘What consumers need now is a further rate reduction. The softening of the housing market has led to consumers reigning in their spending. The market needs encouragement which only an interest rate cut could provide.’