For most it’s not the question of “How” but rather “Will” it affect the car industry or not?
Looking at the way things are unfolding it seems like Britain are getting on with reforming its parliament with the newly appointed Prime Minister Theresa May following the earlier than expected formal resignation of our now former PM David Cameron.
As Britain steps forward to beginning the process of negotiating international trade deals including the car industry it will be very interesting to see what we can bring home.
If we take a look at the current situation on the cars on the roads in UK its seems to be inclining towards E.U. based manufacturers such as VW, Audi, BMW and Mercedes but this could arguably be supported by the E.U. deals and low import taxes and finance deals made available from UK being part of the E.U.
All of this as some level on uncertainty and it’s hard to predict the change now that we are moving out of the E.U.
One thing for sure is the European cars will still be in demand in the U.K. which means car dealerships will still exist and large rentals will still want to renew their fleets. But what these entities now need to try and do is to renegotiate their deals if any increase in taxes are due to arise on a post Brexit situation.
Finance plays a huge role in offering competitive personal car leasing deals and the rates are at its lowest levels becoming more popular year on year. The interest rate is something the banks are going to have to maintain to keep the demand on new car purchases to continue on the rise.
So it’s not just the price of the car but also interest rates that will be affected which can directly influence which way car leasing trends will steer.
It may be the case we see better deals on home manufactured cars such as Jaguar, Land Rover, Toyota and Nissan, should they wish to stay after the Brexit or finance underwriting with other international banks to continue pushing out affordable rates we have been seeing over the past few years.
U.K has seen a huge increase in the sale of Mercedes cars over the past 2 years. Although this is because of their new designs to capture the younger drivers it’s not the only thing that convinces the sale. Mercedes have always had the reputation of being an expensive option for luxury drivers but the prices of a new Mercedes has reduced and with interest rates on finance options being offered by their own internal finance arm being the lowest ever gets the job done nicely. Hence we are seeing a lot more Mercedes on the road being driven by more women and younger drivers.
Another area being in E.U. has influenced is the insurance premiums. Increased competition brings prices down and policies get affected which manipulates risk assessment criteria which all plays a major role in the premium you pay for car insurance.
Now that the demand is at the highest, interest rates lowest and the insurance being more affordable, will all this be changed due to Brexit? All will become to reveal in the coming months.
Do you work in finance or car dealerships?
What are your opinions and thoughts?