Brexit is coming.
We don't know when and we don't know how, and the only thing which is certain is the uncertainty.
The impact of a no-deal Brexit could see the price of a new van rocket by an estimated 10% of its on-the-road (OTR) cost. Which means the knock-on effect of additional tariffs and manufacturing costs could cost you an extra £125* a month on your leasing contract.
But here's the good news. When it comes to the price of your vehicle, there's nothing to worry about if you ACT NOW.
Low Cost Vans have stocked up ahead of any potential changes. Which means you can guarantee a low-cost lease today if you secure delivery before the Brexit deadline date which, as things stand, is Friday, April 12.
You can see our full range of in-stock Low Cost Vans here.
What will change?
It's worth stressing that these
changes will ONLY apply if additional tariffs and costs come into effect, and
until then we continue as normal. But if things were to happen as predicted, we will see:
1. In cases where the manufacturer confirms the vehicle will be subject to the tariff, and hence the price increase, overnight the vehicle will become 10% more expensive.
2. A new leasing quote would then have to be generated on the higher vehicle cost. This will result in an increased monthly rental being charged.
Why are these changes happening?
1. Stock shortages
From supermarkets to pharmacists, companies across the UK are stockpiling supplies ahead of a potential no-deal Brexit. The commercial vehicle industry is no exception, which is why we've stocked up on vans which will remain at low cost prices. But once they're gone, they're gone - give us a ring on
01792 818 538 for a quote now.
2. Interest rate changes
Rates have been held steady up until now, with the Bank of England playing a "wait and see" game. But the longer things drag on, the likelihood of a shock change in rates increases. Interest rates can go up as well as down, but it's worth remembering that if they do go down,
it would be to support a weakened pound.
3. Price rises
Prices are expected to rise after Brexit. From household essentials to commercial vehicles, we'll probably have to pay more for our goods than we do today. A no-deal Brexit will see prices of vans
leap by 10% immediately with the introduction of World Trade Organization (WTO) tariffs
.
4. Residual price
Another effect of any potential WTO price rises is that the residual value of your vehicle (that's the price you get back for it at the end of the lease) could also be less than it is now. Which means Brexit could not only make buying your vehicle more expensive, it could be worth less at the end of the lease as well.
5. WLTP
Brexit isn't the only factor which could drive prices up in 2019. By September, the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) emissions rules will apply to all commercial vehicles and, as we saw when it was introduced for cars in 2018, it will probably be followed by a price hike.
* Based on the increase in on-the-road cost of a Ford Ranger Wildtrack costing £30,000 on a two year leasing contract.
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