How could Brexit affect buying a new car?

How could Brexit affect buying a new car?

Brexit has been a constant presence in the UK dialogue since the 2016 referendum; however, with a trade deal still to be agreed with the EU, a few of our customers have contacted us to ask how a ‘No Deal’ exit might affect their purchase of a new car.

At this stage, we can’t be certain how a ‘No Deal’ Brexit will affect the car-buying industry, but we have been advised that it might result in an import duty tax – predicted to be around 10% – being applied to EU-built cars, therefore directly affecting buyers.

The charges are purely hypothetical at present, and at Arbury, we are hopeful that our customers won’t be affected by the results of a ‘No Deal’ situation. However, it is important to be aware of this potential tax, as it will affect the price of imported vehicles.

The one certainty we do have is that vehicles ordered, registered and cleared through UK customs before Brexit is set in motion will not be subject to any such tariff – so if you are considering buying a new car in the near future, don’t delay, as now could be the best time!

If you would like further information about the possible tariffs and wish to discuss your options, please visit your nearest Arbury showroom today.

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Financial Disclosure

Cathedral Motor Company Limited is an Appointed Representative of Automotive Compliance Ltd, who is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd’s permissions as a Principal Firm allows Cathedral Motor Company Limited to act as a credit broker, not as a lender, for the introduction to a limited number of lenders and to act as an agent on behalf of the insurer for insurance distribution activities only.

We can introduce you to a selected panel of lenders, which includes manufacturer lenders linked directly to the franchises that we represent. An introduction to a lender does not amount to independent financial advice and we act as their agent for this introduction. Our approach is to introduce you first to the manufacturer lender linked directly to the particular franchise you are purchasing your vehicle from, who are usually able to offer the best available package for you, taking into account both interest rates and other contributions. If they are unable to make you an offer of finance, we then seek to introduce you to whichever of the other lenders on our panel is able to make the next best offer of finance for you. Our aim is to secure the best deal you are eligible for from our panel of lenders. Lenders may pay a fixed commission to us for introducing you to them, calculated by reference to the vehicle model or amount you borrow. Different lenders may pay different commissions for such introductions, and manufacturer lenders linked directly to the franchises that we represent may also provide preferential rates to us for the funding of our vehicle stock and also provide financial support for our training and marketing. But any such amounts they and other lenders pay us will not affect the amounts you pay under your finance agreement, all of which are set by the lender concerned. If you ask us what the amount of commission is, we will tell you in good time before the Finance agreement is executed. All finance applications are subject to status, terms and conditions apply, UK residents only, 18’s or over. Guarantees may be required.

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