UK Business Secretary Supports Car Finance Industry

Jul 23 2010

Twickenham MP and business secretary Vince Cable has announced to delegates of the society of motor manufacturers and traders limited (SMMT) that motor industry is the backbone and balance to the UK’s economical strength.

He quotes “It’s becoming clear the government’s success depends on the automotive industry”. The industry employs over 800,000 people and is also responsible for 10% of all national exports. It has also shown great flexibility to adapt their business models to help the UK beat the recession. Car Finance brokers such as Creditplus have also played their part helping the industry to keep financing vehicles and to continue the flow of new and used vehicles being sold in the market.

Cable explained that the UK was too reliant on debt and international banking which is what caused the economic crisis. As a result tax payers, home owners and car owners are left with minimal disposable income after the necessities for living. Credit ratings have also been hit due to missed payments which have led to difficulties in sourcing loans or finance agreements.

It is to their credit that financial specialists like Creditplus have continued to provide finance in such uncertain times. Clearly cars are an expensive purchase that most people, including those with excellent credit ratings, require some sort of financial help to afford.

Although Cable recognizes the importance of the industry, he’s made it clear that the government will not be issuing car companies with cash handouts. Cable stated, “we don’t want to go around waving a cheque book”, he then added that support will be given to the industry by ensuring a stable business environment is formed to capitilise on further opportunities. Ideas of stabilising the environment include creating a supportive tax environment, freeing up credit through the banking system and reducing regulation.

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