Increase in car finance is unlikely to cause credit crunch despite Bank of England fears

Aidan Rennie-Jones
File photo dated 05/01/17 of new cars in a compound near Sheerness in Kent as as new car sales reached a 12-year high in January, according to an industry trade association.
File photo dated 05/01/17 of new cars in a compound near Sheerness in Kent as as new car sales reached a 12-year high in January, according to an industry trade association.

The Bank of England has said it is worried that the current increase in people taking out car leases could cause an economic collapse.

However, this has been strongly denied by the automotive industry. According to The Telegraph, those within the industry have rebuked claims that the constant rise in people borrowing to finance a car is going to dramatically affect the economy – especially in personal contract plans (PCPs).

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