If you are able to turn your attention away from the COVID/Coronavirus situation for just a moment, you may remember that we were in the midst of exiting the European Union!
Quite surprisingly talks have continued to this effect as the UK Government has been in the midst of negotiating both a political and economic excommunication of sorts.
I don’t think many of the UK public understand just what a complicated and sensitive task this will be; if you think COVID has impacted you financially, a difficult BREXIT will really shock you.
Whether you agree or disagree with our decision to go at it alone, this separation is happening and there will be further changes to the way we travel and purchase goods and services with our European cohorts, on top of the COVID ones.
Lease a New Car before Brexit?
So does it affect my new car purchase or lease? Absolutely it does. Should the UK exit the EU on Thursday 31 December 2020 without a deal we could see the introduction of temporary importation tariffs on all goods which enter (and exit) the UK/EU.
For the uneducated bystander, the automotive industry uses an unbelieve amount of products from the EU (including the built cars too).
We are now in position where the manufacturers, financial companies and vehicle data providers (CAP HPI) are working together to understand the significant impact on the car and van industry (leasing/purchase/hire).
The possibility is such that data from the manufacturers will have to change almost immediate so that any vehicles which arrive after “d-day” will be subject to the new pricing structure/tariffs.
Will Car Leasing Cost More after Brexit?
Some manufacturers have provided indicative costs to our data partners whereas as others are waiting until the event happens and will supply adjusted figures thereafter.
So will my new car be more expensive after Brexit? Again, it could be. If we are unable to reach a conclusive deal, any vehicles which arrive after 31 December will be subject to these price increases.
To be clear, the manufacturer will be passing this cost onto you as the end user. Neither the finance company (we operate with a select number of finance companies) nor us as the broker (we are a credit broker and not a lender) will be covering the cost for you.
To assist our present and future customers we are educating them on this matter so that they are entering into the deal on an eyes wide open basis.
We really don’t know for certain if your car and rentals will increase by 10% but it may well do. For some customers this may push them out of their proposed vehicle arrangement and into something lower in value or even a used-car proposition.
However, we are already seeing a stockpiling in the used and nearly-new car industries as companies like Cazoo, Cinch and Heycar (to name but a few) are aggressively trying to control the online arena.
What will Happen to Used Car Prices after a Hard Brexit?
The result is that used car prices are increasing and customers in the car and van world are not going to be receiving good deals.
You will find that should a hard Brexit arise, you will be paying as much for a used car as you would for a new equivalent beforehand. However, with new cars aiming to increase substantially, this may be your only option.
If you are in the process of looking for a new (or nearly new) car, you may be thinking that you can wait until the new year for the best deal. Quite unequivocally, you are wrong in this assumption.
With COVID and lockdown measures for the last 6/9 months, we have not seen anywhere near the volume of cars we would expect enter the UK. This has resulted in limited options available to our customer.
Those who are reticent could end up missing out and effectively end up in a worse proposition (but for more money). The press have not helped customers in this effort as we have noticed some reporting that deals are to be had and that over-supply will assist the consumer.
Our submission is that this is very much a fallacy and customers could end up being misled. If you want something now, just get in touch with the CarLease team.
Our Latest Personal Car Lease Delivery
A big thank you to our personal leasing customer from Braintree for sending pictures of their new car! In terms of the car shown, the Audi A4 AVANT 35 TFSI Black Edition 5door (Manual/Petrol), this is based on the following configuration:
- Navarra blue Metallic Paint
- Alcantara/leather – Black with rock grey contrast stitching + front sports seats with S embossed logo
- 19″ 5 arm rotor design alloy wheels titanium matt look
As standard the car includes alcantara/leather upholstery, privacy glass, rain/light sensors. Acoustic glazing,
ESC, hill hold assist, multi collision brake assist,
Audi connect, parking system plus with front and rear sensors, rear view camera,
power operated tailgate, virtual cockpit, electrically folding/dimming/adjustable/heated door mirror with LED indicators, DAB radio, body coloured externals, illuminated door sills,
S Line aesthetics, climate control, LED headlights with headlight adjustment, high beam assist, 3-spoke flat bottomed steering wheel,
LED interior light pack, black styling pack, 4-way electric lumbar support, 40/20 split folding seats, heated front seats, keyless go, 19” alloys and anti-theft alarm.
In terms of additional options, consider adding – fine nappa leather and the panoramic glass sunroof.
On the technical-side company car and business users can note the P11d at £37,140.00 and CO” at 157g/km. The 1984CC 6 speed manual petrol engine delivers 44.1 combined MPG, 150ps and 0-62 times of 8.9 seconds.