How car firms will alter their prices post-Brexit

This topic contains 3 replies, has 3 voices, and was last updated by  WardyGTC 3 weeks, 6 days ago.

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  • #92866 Reply

    Brydo

    After three years of turmoil, Brexit is finally entering its endgame – hopefully. Although Britain’s final relationship with the European Union (EU) is yet to be decided, car manufacturers have started staking out their responses to a variety of different outcomes.

    As the most damaging option, firms have naturally focused on ‘no deal’ or an otherwise ‘hard’ Brexit, which could trigger changes to their pricing structures. If Britain leaves the EU without a deal or a sufficient free trade agreement, the UK could find itself subject to significant tariffs, disrupting manufacturers’ supply chains and potentially being passed onto the consumer in higher list prices.

    Crucially, this may even apply on cars ordered before the official exit date, as companies seek to protect profit margins in response to rising costs. Not all manufacturers intend to handle this the same way, however, with costs to the company and consumer varying widely between different brands. Here is what those who responded to requests for comment have said:

    BMW and Mini: Tariffs not passed on

    https://www.autocar.co.uk/car-news/industry/how-car-firms-will-alter-their-prices-post-brexit

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  • #92880 Reply

    WardyGTC
    Participant

    The dealer paperwork for our new car had a clause stating that the price may be subject to change if the car wasn’t delivered before 31st October. Not sure how that would have worked on Motability though, would that have been our problem or Motability’s? I would hope and expect that Motability would have made up any shortfall, I’m sure they’ve allowed a budget for transitional variations.

    #92909 Reply

    BigDave
    Participant

    The dealer paperwork for our new car had a clause stating that the price may be subject to change if the car wasn’t delivered before 31st October. Not sure how that would have worked on Motability though, would that have been our problem or Motability’s? I would hope and expect that Motability would have made up any shortfall, I’m sure they’ve allowed a budget for transitional variations.

    Dont forget that Motability have guaranteed Prices/Advance Payments for cars ordered on or before 31st October 2019:

    Due to uncertainty around the exact arrangements for the UK’s expected departure from the European Union, these prices may be subject to change after 31 October 2019. The prices quoted are guaranteed for cars ordered on or before 31 October 2019 and will apply even if this changes while you are waiting to take delivery of your car (the exception being where the car description is changed subsequent to the original order.)

    Latest prices for the Motability Scheme

    I expect they will move the guarantee date along at some point, possibly on a rolling monthly basis, pending any formal Brexit deal happening/not happening.

    #92911 Reply

    WardyGTC
    Participant

    I hadn’t seen that Dave, so I assumed correctly for a change. Good to know for anyone due delivery in the next few weeks though.

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