Consumers need more incentives to buy

‘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,’ said Sue Robinson, Director of the RMI National Franchised Dealers Association (NFDA), commenting on car sales figures for February 2008, and the interest rate cut announced today (Thursday 6 March 2008).

69,610 new cars were sold during February, 5.4 per cent down on 2007.

The Bank of England has also announced that it has held UK interest rates at 5.25 per cent. The rate was reduced last month from 5.5 per cent

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.’