RBA: Interest Rates Will Stay Low
Despite being primarily a public health issue, the Bank of Australia acknowledges that the COVID-19 pandemic has a significant impact on the financial system and the overall economy.
As their response to the financial situation, the Reserve Bank Board lowered the cash rate to 0.1 per cent and may not see an increase until 2024.
This new policy is expected to support job creation and stimulate economic growth by lowering the cost of funding and supporting the supply of credit to the economy.
How Will This Affect Consumers?
Car Financing is on the Rise
The lowered cash rate has driven steady growth in the demand for new cars in the last five months. More people have been open to buying a car on finance, thanks to the relatively low interest rates.
Intense Demands may Result in Supply Shortages
The economic effect of the pandemic has driven interest rates in Australia to an all-time low and encouraged consumers to leverage on credit.
Yet, the very same pandemic has disrupted global supply chains, and the Australian Automotive Dealer Association is still unclear about when the issue will be resolved.
High Demand and Low Supply
This situation can only push car prices to go up over the coming period. If you’re in the market or considering buying a new car, this might be the best time to finance a new car. Cash rates are low, and the situation’s effects on car prices have yet to manifest.
Buddii will Make it Easier
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Approval will remain active for 90 days, giving you more than enough time to secure your next vehicle.