Monday, April 20, 2009
BCA Calls for Car Credit Budget Boost
British Car Auctions (BCA) has called for a stimulus to the car credit market in the Budget on Wednesday to boost new and used car sales.
"In terms of expected budget content affecting the motor industry, there appear to be mixed messages on the adoption of a scrappage scheme.
BCA said it expected little movement on fuel tax and the road fund licence given the content of the pre-Budget report.
"We would argue that some kind of stimulus for the car credit markets is actually more important - so those that can sensibly afford to finance a new or used car purchase can do just that - particularly at a time when prices have rarely been keener.
BCA said potential deals are faltering at the loan stage because motorists are finding it difficult to get a suitable and affordable loan.
"When these are instances involving car buyers with perfectly good credit ratings and the wherewithal to manage a loan sensibly, the motor industry is obviously losing potential business through no real fault of its own.
BCA said it was encouraged that the used car and van markets have performed well this year and demand remains "much stronger" than it was for most of 2008.
But it warned: "Despite the recovery in prices, we believe there is more fragility in the market than we have previously seen and the last thing we need now is to see the market stalling.
"This week's Budget is therefore crucial - and stimulus is required right across the vehicle markets.
"Supporting new car sales is vital, but it is equally important that the used car sector is helped as well. Used cars are a major part of the motor retail sector's business and, therefore, a major contributor to the UK economy."
DATED: 20.04.09
FEED: TM
"In terms of expected budget content affecting the motor industry, there appear to be mixed messages on the adoption of a scrappage scheme.
BCA said it expected little movement on fuel tax and the road fund licence given the content of the pre-Budget report.
"We would argue that some kind of stimulus for the car credit markets is actually more important - so those that can sensibly afford to finance a new or used car purchase can do just that - particularly at a time when prices have rarely been keener.
BCA said potential deals are faltering at the loan stage because motorists are finding it difficult to get a suitable and affordable loan.
"When these are instances involving car buyers with perfectly good credit ratings and the wherewithal to manage a loan sensibly, the motor industry is obviously losing potential business through no real fault of its own.
BCA said it was encouraged that the used car and van markets have performed well this year and demand remains "much stronger" than it was for most of 2008.
But it warned: "Despite the recovery in prices, we believe there is more fragility in the market than we have previously seen and the last thing we need now is to see the market stalling.
"This week's Budget is therefore crucial - and stimulus is required right across the vehicle markets.
"Supporting new car sales is vital, but it is equally important that the used car sector is helped as well. Used cars are a major part of the motor retail sector's business and, therefore, a major contributor to the UK economy."
DATED: 20.04.09
FEED: TM
