With all the uncertainty of Brexit – the if and when, deal or no deal – it’s not surprising that many people are delaying decisions on major purchases.
But while many questions remain unanswered more than three years after the referendum resulted in the UK choosing to leave the EU, and with the October 31 deadline looming, now might be a good time to buy a new car, especially if you’re considering a European-built model.
There’s still uncertainty about what will happen to interest rates but the Bank of England would like to gradually raise rates closer to their pre-recessionary norms. That is likely to be the case if the UK’s departure from the EU goes smoothly. A no-deal Brexit could see rates fall slightly to stimulate a weakened economy.
And what about prices. Well, if the already weakened pound is worth even less, then prices are set to go up making that big purchase an even bigger one.
There is also a suggestion that car prices would go up after a no-deal Brexit.
A 10.6% tariff on ‘fully-finished’ cars being imported into the UK from the EU would add around £1,500 to the price of an average family hatchback.
The UK currently has a tariff-free relationship with the European block so the extra cost would apply to all cars manufactured in mainland Europe, a very large proportion of all those sold in the UK.
So to buy, or not to buy – that is the question.
Simon Gray Director, said: “We’re here to help you get the best-value finance to suit your needs. Speak to us and we’ll do our best to give you a great deal… and a prompt decision.”