Consumers Warned The Price Of Cars Will Rise Due To Slump In The Pound

The video discusses the impact of Brexit on the UK car market, highlighting a potential slowdown in sales and rising prices due to the weakened sterling. It explains how the majority of cars in the UK are imported, making them susceptible to price increases. The Society of Motor Manufacturers and Traders (SMMT) predicts a 2-3% rise in car prices, affecting popular models like the Ford Fiesta. Additionally, the rising cost of fuel is impacting motorists, leading to increased reliance on finance options. Concerns are raised about household debt levels, with the Bank of England's chief economist warning of tougher economic conditions ahead due to higher inflation and reduced consumer spending power.

What is the main reason for the predicted slowdown in car sales according to the Society of Motor Manufacturers and Traders?

• Rise in electric vehicle popularity

• Decrease in consumer interest

• Weakening of the pound due to Brexit

• Increase in local car production

How much is the price of the Ford Fiesta expected to increase due to the rise in car prices?

• £200

• £500

• £300

• £400

What is one of the reasons for the increase in fuel costs?

• Government subsidies

• Cuts to oil production

• Increase in oil production

• Higher demand for electric cars

Why are more people turning to finance options for buying new cars?

• To avoid paying taxes

• Because of lower interest rates

• Due to rising car prices and fuel costs

• To get better insurance rates

What economic concern is highlighted by the Bank of England's chief economist?

• Increase in exports

• Material slowing of the economy

• Decrease in inflation

• Rise in employment rates