No interest rate rise, yet

The cost of financing a car is unlikely to rise over the next month as the Bank of England voted to maintain the base interest rate at its current level today.

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The cost of financing a car is unlikely to rise over the next month as the Bank of England voted to maintain the base interest rate at its current level today.

Although the Bank has increased the rate twice in the last three months, it today decided to keep it at 4.5%, at least until it next meets in August.

There is continued pressure on the Bank to raise rates further in a bid to cool the housing market, however, so the cost of finance will probably rise through the year.

Latest sales figures from the Society of Motor Manufacturers and Traders show car buyers aren’t being dissuaded from visiting showrooms by the prospect of increased borrowing and running costs. Last month’s sales figures were the second highest ever for the month of June.

Currently the most competitive loan rate available is 5.8% APR from Cahoot on a secure loan of up to £20,000 over five years.