Motorpoint records bumper month in light of declining UK car sales

A recent report has indicated that consumers will be increasingly reluctant to put their hands in their pockets to purchase a new car, because of the threat of further interest rate rises. The Bank of England rate currently stands at 5.5%, the highest level in six years, with many predicting that it will increase to 6% before the end of 2007.

However, Motorpoint, the UK’s largest car supermarket, is far from feeling the pinch, having recorded an impressive 23% rise in sales for June 2007, compared to the same period last year, which means that the retailer is well on course to achieving its sales target of 47,000 units. Buying a car over the phone and Internet is also still proving very popular with the retailer’s call centres accounting for 33% of the total sales last month.

The threat of rising rates has neither dampened the desire to purchase a car on credit thanks to Motorpoint’s very competitive Boomerang™ finance programme. This allows repayments for both new and used cars and commercial vehicles to remain affordable despite the increase in the cost of borrowing. Furthermore, customers are treated to a £300 contribution towards their deposit, and a guaranteed future value at the end of the three-year repayment plan.

Commenting on the recent trend, David Shelton, Managing Director of Motorpoint explains: “During the last year, consumers have become accustomed to paying more interest on loans, which has naturally made them more wary about their spending. However, by offering great value and competitive prices on a large range of products from off-road vehicles to cabriolets, coupled with affordable means of owning a vehicle, this has provided a low-cost solution to buyers enabling us to buck the national trend.”

For information on the latest deals at Motorpoint, refer to motorpoint.co.uk.