Some of the products sold by the company are usually purchased on credit. When customers buy a new car, customers must provide a deposit small amounts and obtain a loan to pay off the remainder of the purchase price. If the interest rate increases, the customers who buy a new car had to pay the monthly installments higher. This can make some customers are not buying new cars because they do not want to or can not afford to pay installments that high. Thus, higher interest rates lead to lower yanbg demand for new cars, resulting in lower sales to car dealers and car manufacturers.
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