Brexit and car leasing

Order soon to avoid Brexit price increase, industry analysts warn. 

A Brexit trade deal still hangs in the balance at the time of writing and therefore the exact changes we face are largely unknown. However, the end of the transition period on 31st December brings with it uncertainty around both stock levels and vehicle costs going into the new year and beyond, regardless of the agreed outcome.

Brexit price increases

Brexit car price changes

A worst case scenario will mean that vehicles imported to the UK from the European Union will revert to standards implemented by the World Trade Organisation (WTO). This will see a new 10% import tariff take effect immediately on models in transit. Based on custom prices, rather than the retail price of the vehicle, we are likely to witness a 6.3% increase in car prices on 1st January. As around 70% of cars registered in the UK are currently imported from the EU, these price increases will be far-reaching.

In real terms, the average increase per vehicle is expected to be around £1,800. However, this will be considerably more for premium priced makes and models. 

The position of manufacturers differ as to whether they will absorb the price increases on orders placed before 31st December. However, they are unanimous in confirming that any additional fees applied after the transition period will be passed onto customers. 

Brexit factory waiting times

Brexit car stock changes

As well this price uncertainty, the conclusion of the Brexit transition period brings with it concerns over delays in transporting goods of all kinds.

As new processes come into force, longer and more stringent customs checks are expected to be required to accommodate new regulations. This will mean delays in transporting parts to factories and also disruption at ports for built vehicles being transported to the UK.

This is in addition to the disruption caused by the COVID-19 outbreak which has seen factories have to close or run at reduced capacity. The existing delays to factory built vehicles are therefore expected to increase further as we enter 2021.

The positive here is that these Brexit-related transition issues are expected to be short-lived as manufacturers and their transportation processes adapt accordingly. Although immediate in their impact, once companies adapt to Britain's exit from the EU, the disruption will be easily overcome.

SEE MORE: Post Brexit driving rules: all you need to know.

How can you beat Brexit disruption when ordering your car?

Industry advice has been to order your car early if you are in the position to do so. This will give you the best chance of beating price and stock disruption. 

However, if you are not in a position to do so, looking for lease cars advertised on site as being 'in stock' before 31st December will also help. Cars can only be advertised as in stock if they are on site with our partner dealerships. Therefore, there will be no extra tariffs applied to these cars as they are already in the UK before the transition period ends. All in stock cars are advertised with an accurate delivery estimate - this can be as little as two weeks - meaning you will also avoid any uncertainty over extended build lead times.

In addition you will see new 'Brexit safe' labels on lease deals throughout our site. These will highlight the models that were in stock ahead of the transition period ending and are therefore protected from Brexit driven price changes and delivery delays.

Search in stock car lease deals

Search in stock van lease deals.

Beat Brexit lease deals

We have been working hard here at Carparison to minimise the disruption caused by the end of the Brexit transition period, whatever happens. 

We have secured a number of lease deals on some of our favourite models. These are in stock now and therefore are price protected against any Brexit tariffs and will be deliverable to you in a matter of weeks.  

Please note: stock availability is correct at time of publishing.

Here are our top picks for car lease deals to beat Brexit disruption:

If you would like more help finding your perfect car lease deal in 2021, our team are here to help. Contact us or call 01395 200 344.