Canvey Carriage Company Asks: Are Car Prices About to Go Up?

Reports that came out last week suggested that a future rise in interest rates may push up what you pay for a new car.  Is there any truth in this? Canvey Carriage Company Explores.

Canvey Carriage Company – The Cost Effective Used Car Service

We prioritise rock bottom prices here at the Canvey Carriage Company. A Canvey, Essex-based used car provider, we’ve built up a reputation as the showroom where you can bag a quality bargain for your latest used car.

The services of used car providers such as Canvey may be more in demand than ever, according to industry experts, as the wallet friendly prices currently trending in the national car industry may be set to disappear, as the national interest rate gets raised by the Bank of England.

Set to Hit Pre-2008 Levels of Economic Growth

For anyone who reads the money pages of their local rag, you’ll know we’re in the midst of an economic recovery. Accoridng to practically every financial expert around, our economy is stronger than it’s been since the recession, and we’re set to return to pre-2008 levels of growth by the summer.

This has been spurred on in no large part by the Bank of England setting their benchmark interest rate at 0.5% last year in a bid to spur British business growth. It clearly worked for the car industry, as UK car production jumped 12% in March alone and people are buying British cars in droves.

So Goes the Interest Rate, Goes the World

It seems like the bubble could burst a little now, though, as UK Hyundai CEO Tony Whitehorn has suggested that even small rises in the interest rate would impact the car industry, as it would restrict access to the funding people need from lenders to buy their car.

Reuters reported that Whitehorn said of the situation "I think it just has significant ramifications to confidence and directly into accessibility of funds to buy cars." Whitehorn has a point, as the interest rate will rise at some pint – it has to in order for the economy to keep on growing.

That is why used car services such as those supplied by Canvey Carriage Company are going to become more important than ever in the coming months – the interest rate can’t stay at 0.5% forever!