Confidence in spending is growing
Wednesday, 25 July 2012
In today's economic climate it can appear that consumer confidence in purchasing new items such as new cars is rapidly falling away. However, there is some evidence that suggests this not true. Not only have new car purchases remained at a constant level, but confidence in spending is also growing steadily.
The measures which British financial institutions have taken to ensure economic stability targets are reached and that credit is still a viable option is a prime reason for this growing confidence, as a recent report from the BBC has suggested.
Cash injection schemes
The Bank of England has recently implemented a large cash injection system, which is helping banks overcome their economic problems. One of the main problems connected with the financial industry was offering high-risk loans, something many banks were guilty of.
At present, over £8 billion has been injected across the board to ensure that credit is still a viable option. If you are an individual with a good credit history then loans are still available at good interest rates.
There are also many deals, such as the Honda Jazz deals, that are plentiful and cater to all budgets and requirements, and which may help you afford the car of your dreams.
The government has recently purchased a large number of shares in many banks. When one bank goes bust, the impact is often felt across the board. This is what the British Government are hoping to address. With the government share system, banks are not nationalised but monitored and attended to in times of need to prevent disruption.
Delay in the rise of fuel prices
Fuel prices haven't risen significantly of late and this, combined with the recently implemented cash injection schemes, has seen a rise in the amount of new cars which are being purchased.
In actuality there has never been a better time to purchase a new car. With the costs of public transport growing, many people are returning to financial reward schemes and credit to obtain their own form of transport instead.
Public perception is key
Alongside the improvements to finances being made, government plans are also hoping to address the perception which British residents have of the economy. If a country believes that they are in tough economic times then they are likely to spend less.
The rise of hybrid cars
The availability of hybrid cars on the domestic market has also meant that there has been a rise in the amount of public spending. Low emission cars do a great deal to keep the costs of running a car as low as possible.
Combined with a growing confidence in public spending thanks to government measures and deals on new cars, the idea of buying a new car is not something that is completely unrealistic.
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