New Car... will the price increase due to Brexit?

[naefeart]

I’m in the fortunate process of buying a new car. It wasn’t planned as such, but circumstances have aligned and an opportunity has presented itself.

Im due to confirm the order this week and get my build slot for a delivery in late January. Am I likely to be impacted by a price increase come delivery day, due to import tariffs and Brexit?

The dealer hasn’t said anything, though I haven’t asked specifically. I’ll do that today, just wondering what the current thinking is and if anyone else is in a similar boat?

 

[Semple]

Are you buying the car outright or on finance?

I don't know when the balance is settled if you buy it outright, but at least for finance the contract is signed before the car is delivered, so the dealership can't just add more costs on if they get whacked with higher import costs.

 

[Maundie]

We signed up for a new BMW on PCP last month (delivery is early December), with the dealer contribution we got it considerably less than rrp and as the paperwork is signed I'm fairly sure they cannot increase the price now it's all done.

 

[naefeart]

Yes there will be some finance. I was also thinking this route would lock-in the final price, but I just don’t know... I don’t want to simply take the dealer’s word, they will tell you anything. Best do my research now before I put my money down.

 

[200sols]

10% tariff I think if they dont agree any deal. Check the contract very carefully.

 

[The Running Man]

Buy Japanese.

Or buy nearly new and save about 30% 0lus get a better spec?

 

[naefeart]

Or buy nearly new and save about 30% 0lus get a better spec?

Normally I’d do this, but physical nearly new cars are going for a premium.

Looking at slightly older cars and there are no cars currently in the uk dealer network that are my desired spec. The closest ones (still wrong spec) are 2 years old with 15k+ miles on them. For around 15% more, the new car IS my desired spec and well, it’s new.

let’s please not focus on the specific car or price aspect too much. If I’m liable to incur a brexit charge, or I can’t confirm beyond reasonable doubt, that come Jan I won’t be expected to pay an additional percentage, I will just cancel my order.

I know it’s a bit #firstworldproblems but it would be nice not to take a hit here.

 

[mrkev]

10% tariff I think if they dont agree any deal. Check the contract very carefully.

and +VAT on the duty

 

[turbot1984]

We signed up for a new BMW on PCP last month (delivery is early December), with the dealer contribution we got it considerably less than rrp and as the paperwork is signed I'm fairly sure they cannot increase the price now it's all done.

Just got a pre-reg 530d Touring with 10 miles on the clock. £18500 off list price!! No worries.

 

[Nasher]

Probably cheaper atm with lack of sales and old stock to shift

 

[sigma]

You won’t need a new car post-Brexit as we’ll all be riding unicorns.

 

[WJA96]

Japan/Korean trade deal is in place so no change there.

There are already effectively WTO tariffs on US and South American cars (some VWs) so no change there.

Anything South African is fixed, so no change there.

Anything European will probably not change radically in list price terms but you might not get such a big discount. The European manufacturers cannot afford to not shift cars and they manage to sell cars in ultra-high taxation nations like Finland, Denmark and Norway so I’m sure they’ll manage to sort out the process to remain competitive in the UK. And if the price of new cars does go up by the x% dictated by the WTO tariff, it will just firm up the used prices (including any trade-in you might have) so it might well cancel itself out.

Or you could buy something made/assembled in the UK. Now there’s a scary idea.

 

[Rroff]

Or you could buy something made/assembled in the UK. Now there’s a scary idea.

Unless you are talking like Ariel Atom very few cars now are solely UK owned, produced and sold domestically in a way that is relevant here. Buying an Atom would be a brave decision even stuff like Jaguar these days isn't that simple.

 

[WJA96]

Unless you are talking like Ariel Atom very few cars now are solely UK owned, produced and sold domestically in a way that is relevant here. Buying an Atom would be a brave decision even stuff like Jaguar these days isn't that simple.

Hence the ‘assembled’. And it’s not about who owns it, it’s about what’s least added cost from Brexit. If nothing else it reduces the WTO duty because the duty on components is less and the labour is not only not taxed but actually aids the UK economy.

 

[Nasher]

Problem is the surviving, real British car makers are mainly exotics. We always seem to put passion over profit.

It's also a tradition to be permanently on the verge of bankrupsy.

 

[WJA96]

Problem is the surviving, real British car makers are mainly exotics. We always seem to put passion over profit.

It's also a tradition to be permanently on the verge of bankruptcy.

You’re not wrong. Of course there aren’t really any pure ‘British’ cars. Even the old Rover V8 was really American. Lotus uses Toyota engines, Ariel uses Honda, McLaren’s engines are BMW based. VAG own Bentley and they’re really just rebadged VWs (look at the C-pillar on the Phaeton and the original Flying Spur) and you can take the back doors off a Touareg and they’ll fit straight on a Bentayga.

And Rolls Royce is obviously just BMW.

 

[naefeart]

Anything European will probably not change radically in list price terms but you might not get such a big discount. The European manufacturers cannot afford to not shift cars and they manage to sell cars in ultra-high taxation nations like Finland, Denmark and Norway so I’m sure they’ll manage to sort out the process to remain competitive in the UK. And if the price of new cars does go up by the x% dictated by the WTO tariff, it will just firm up the used prices (including any trade-in you might have) so it might well cancel itself out.

Or you could buy something made/assembled in the UK. Now there’s a scary idea.

‘My’ car will come from Germany and being reasonably sought after, there is little to no discount unfortunately. But then I knew that going in. If the price of the new car goes up x% after the fact, I’m pretty sure they won’t retrospectively raise my trade in value.

The sad thing is, it’s the customer that gets squeezed by all this. The media hypes it all up and there’s little real info coming from government, apart from lots of political posturing. They say they don’t want to harm the economy, but they totally shake everyone’s confidence in it.

I’ve a call with the finance manager at the dealership tomorrow, I think I’m going to be putting my wallet back in my pocket. C’est la vie.

 

[WJA96]

‘My’ car will come from Germany and being reasonably sought after, there is little to no discount unfortunately. But then I knew that going in. If the price of the new car goes up x% after the fact, I’m pretty sure they won’t retrospectively raise my trade in value.

The sad thing is, it’s the customer that gets squeezed by all this. The media hypes it all up and there’s little real info coming from government, apart from lots of political posturing. They say they don’t want to harm the economy, but they totally shake everyone’s confidence in it.

I’ve a call with the finance manager at the dealership tomorrow, I think I’m going to be putting my wallet back in my pocket. C’est la vie.

The prices won’t go up. They have tremendous margins and they’ll just absorb most of the difference. No discount? That’s good for residuals. Can I ask what this car is exactly? The only car I’ve seen recently with little to no discount isn’t German.

 

[jamoor]

Buy Japanese.

Or buy nearly new and save about 30% 0lus get a better spec?

Most Japanese cars that we get don’t come from Japan.

 

[BeatMaster]

Just got a pre-reg 530d Touring with 10 miles on the clock. £18500 off list price!! No worries.

That’s an amazing deal! Do you know if they’re any others available?