Major independent retailer Motorpoint has capped finance interest rates at 8.9% APR in a bid to help its customers through the pain of the cost-of-living crisis.
CEO Mark Carpenter committed the business to the rate for at least the next three months as UK inflation continues to soar and a further slump in new car sales looks set to drive car prices even higher.
He made the pledge as the latest data from the Society of Motor Manufacturers and Traders (SMMT), released yesterday, showed a 24.3% year-on-year fall in new car registrations in June, making it the weakest month since 1996.
The results rounded off a dismal six months for the new car sector, with global supply shortages contributing to the weakest registration numbers in three decades. This will further fuel demand in the already overheating used car market, driving prices up further.
Carpenter said Motorpoint lives up to its promise to be the car buyers’ champion by helping its customers achieve the best choice and value wherever possible.
And he urged anyone thinking of changing their car in 2022 to act now to secure best rates and fix their monthly repayments while they can.
“Our company values are ‘proud’, ‘honest’, ‘happy’ and ‘supportive’ and for 24 years we have set our stall out to offer our customers the best value and the best service.
“For us these are not just soundbites, we genuinely believe them, and so we cannot sit back and do nothing while our customers are struggling to make ends meet.”
He added: “As a car dealer we were faced with two choices in the current climate – put our prices up or make a lower profit by passing savings onto our customers.
“We have chosen the latter option without hesitation as our entire business is based on honesty, transparency and value.”
Carpenter continued: “The cost of financing through a car dealer or borrowing from a bank is going up and we’ve decided to hold ours at an 8.9% APR, which is one of the lowest in the market and to hold it there for the next three months.
“This means that customers who act quickly and buy at Motorpoint today can fix their monthly repayments for the next three to four years and will have the security of knowing their monthly finance payments won’t rise, even as inflation does.”