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Car News

Oct 7 2008

In order to restore confidence in the new and used car markets the government needs to take action now, an industry body has claimed.

Sue Robinson, director of the RMI National Franchised Dealers Association, said trading conditions for car dealers are "tough".

It is "essential" that the government aims to stabilise the economy to boost consumer confidence, Ms Robinson remarked.

The expert made her comments following new figures from the Society of Motor Manufacturers and Traders which showed that the number of new cars sold in September was 21.2 per cent lower than a year earlier.

"With consumer confidence at such a low ebb, September's car sales figures are not a surprise in many respects," Ms Robinson said.

There is a "real need" for government action, she added, stating that lower interest rates would benefit the economy as a whole.

Last week, Ross Walker, economist at the Royal Bank of Scotland, predicted that the Bank of England would cut the base rate of interest by 25 basis points this month.
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