On the 23rd on June 2016, the British public made the historic decision to leave the European Union and on the 29th March Britain will break away from a union it has been a part of in one form or another since 1973.
With this much change comes a great deal of uncertainty especially for the car industry. So, what will Brexit mean for British car buyers?
Car Prices after Brexit
The major impact Brexit has had on car prices is the fall in the value of the pound. Pre-Brexit, the pound was a lot stronger which meant European car manufacturers had a larger margin to offer incentives and still make a very good profit. Since Brexit, the fall in the value of the pound has reduced the incentives car manufacturers can offer.
Analysis from the Society of
Motor Manufacturers and Traders suggest that EU tariffs could significantly
increase the cost of imports and exports. Import tariffs could significantly
push up the list price of cars imported from Europe, with speculation that the
price could increase by an average of £1,500 if retail networks are unable to
absorb the additional import/export costs.
Brexit impact on fuel prices
I’m sorry to say that we could also see a significant rise in fuel prices after we break away from the EU. Again, new import/export tariffs could significantly increase the cost of fuel. If the worst were to happen and we break away from the EU in a “No Deal” situation, the combination of increased import/export tariffs and the significant hit the pound will take could result in record petrol prices.
The good news is that this may
only be for the short term, as the market is expected to stabilise relatively
Driving abroad after Brexit
Not a great deal will change if you decide to drive from Britain into Europe post-Brexit. It’s expected visitors from post-Brexit Britain will have to pay €7 for a visa waiver which will be valid for up to 3 years.
It’s also expected that drivers will also need to have their passports stamped at border crossings after Brexit, which will increase the time it takes to cross into Europe.
UK drivers living in the EU?
In the event of a no-deal Brexit your driving licence may no longer be valid by itself when driving in the EU. If you’re a UK motorist living abroad, you may have to pass a driving test in the EU country you live in to be able to carry on driving there.
So, what do we know? Not a great deal I’m afraid. We can only really speculate at the moment as to how Brexit will affect British motorists in the future. What’s likely to happen is prices may increase for the short term, but as the uncertainty dissipates prices are likely to stabilise.