Prospective car buyers say they will purchase British built vehicles in no-deal Brexit

Brexit: President of AA explains post-Brexit driving rules

Over half of prospective road users would be more inclined to buy British cars if EU built vehicles were hit with heavy tariffs. Research from WhatCar? has found an increased demand for UK cars as drivers desperately avoid paying heavy upfront costs in the event if a no-deal Brexit come 1 January.

A total of 34 percent of prospective users say they are considering bringing their vehicle purchase forward to avoid possible supply disruptions and increased costs.

In the event of a price increase, 25 percent said they would consider choosing fewer options on their next model.

While 18 percent said they would purchase a lower trim vehicle to help balance out the costs.

Newly imported cars are likely to face a 10 percent tariff in the event of a no-deal which could see prices rise by up to £1,900.

We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

This could increase to £2,800 for electric cars which have been imported into the UK from EU nations.

Analysis from WhatCar? found a massive 87 percent of buyers were aware prices could go up in the event of a no-deal.

Meanwhile, 64 percent raised their conversion over the likelihood of supply delays and the extra tariffs issued to vehicles.

Steve Huntingford, editor of WhatCar? said: “Consumers are clearly aware of the financial and logistical implications of a no-deal Brexit on the automotive sector.

DON’T MISS
Drivers need a car insurance green card within weeks [INSIGHT]
Can you still drive in France after Brexit? [ADVICE]
Driving after Brexit: What do I need to drive abroad after Brexit?  [TIPS]

“What the industry urgently needs, as it begins to emerge from the unique challenges provided by the Covid-19 pandemic, is some clarity around the nature of our future trading relationship with Europe.”

Tom Leathes, spokesperson for Motorway.co.uk has previously warned extra tariffs on new car prices may push many drivers to shift towards second-hand cars.

He said used models were “cost-effective” and would not be subject to any import tariffs as the cars would already be based in the UK.

He previously added cars made in the UK were less likely to be affected by costs “further down the line” as he warned some car parts which are imported could also be affected.

He said: “UK manufacturers absolutely need to make the most of this proposed increase to import tariffs and ensure that any cost savings they can make are passed to the consumers.

“As we enter an almost certain economic recession, every consumer will be watching the pennies and making smart purchasing decisions to keep their finances secure.”

The SMMT has warned a no-deal Brexit would add at least £4.5billion to the manufacturing cost of assembled cars.

They add the tariff would also add £2,000 on the average cost of UK electric cars exported to the EU which would make products “less competitive”.

Mike Hawes, SMMT Chief Executive has warned no deal would still risk threatening “the future of the UK industry”.

He said: “As these figures show, ‘no deal’ tariffs will put the brakes on the UK’s green recovery, hampering progress towards net zero and threatening the future of the UK industry.

“To secure a truly sustainable future, we need our government to underpin industry’s investment in electric vehicle technology by pursuing an ambitious trade deal that is free from tariffs, recognises the importance of batteries in future vehicle production and ensures consumers have choice in accessing the latest zero-emission models.

“We urge all parties to re-engage in talks and reach agreement without delay.”

Source: Read Full Article