How flexi hire can help with rising car prices and Brexit uncertainty
Despite sounding like a light morning snack, Brexit has gained an increasingly controversial reputation in the last few years since the referendum result, and especially within the last few months or so. That’s only intensified in recent weeks as we near another deadline. As for whether we leave with a deal, there are a lot of conflicting opinions on what would be best for Britain as a whole, but certainly one industry to feel the heat from a no-deal would be the UK’s car industry.
Whatever happens after the deadline for leaving, we should expect a period of instability with new and used car sales. None of this is great news if you’re in the midst of looking for new vehicles for your business fleet - but happily, that’s where flexi hire can help.
Why might prices of new cars go up?
In short, EU tariffs. Once the UK is no longer a member of the European Union, one likely outcome is the application of an import duty tax of about 10%. This will directly affect UK buyers, as it’s predicted to increase the price of the average family car by about £1500. Lots of businesses in the automotive industry are adjusting their predictions on how car prices may be affected based on the recent government turmoil. Amongst them is carwow, a car price comparison website, which has compiled a useful list of how the vehicles from most major manufacturers will rise after Brexit.
It demonstrates that the rise is going to be far more dramatic for some makes than others. The price of the average Ford vehicle, for example, will only rise by an average of £727, whereas the price of a Mercedes may well skyrocket by a staggering £8088. We’ve summed up some of carwow’s key findings about the biggest manufacturers below.
Average price rises of cars from key global manufacturers:
Citroen - predicted rise of £3942
Ford - predicted rise of £727
Honda - predicted rise of £2676
Hyundai - predicted rise of £2268
Mercedes predicted rise of £8808
Nissan - predicted rise of £895
Peugeot - predicted rise of £5454
Renault - predicted rise of £4255
Toyota - predicted rise of £2491
Vauxhall - predicted rise of £631
Volkswagen - predicted rise of £5873
Volvo - predicted rise of £8288
Prices are on the high end of the scale for models like Audi as well, which is predicted to go up by £8137. Even that pales in comparison to Alpine cars, which could cost consumers over £10,000 more! It’s important for us to say, though, that these are still speculative at the moment, as the exact tariffs haven’t been confirmed. Manufacturers may well even choose to offset this impact, but obviously that’s far from guaranteed - banking on that means gambling on whether it makes good business sense for them to do so.
The fluctuating value of the pound is really not helping things either, and with all the recent chaos in UK parliament, it’s safe to say that most of the automotive industry is not optimistic, making it a somewhat bleak outlook at first glance if you’re looking to expand your business fleet. Thankfully, that’s where we can help at Intack Self Drive.
How can flexi hire help your business?
We know that whatever happens on a government and administrative level, day-to-day business never stops, and often waiting too long for a new vehicle costs you money and productivity. That’s where flexi hire comes in. Whether you’re looking for car hire, minibuses, or flexi van hire, you can rely on our prices to be fixed, so you know what you’re getting no matter what happens in the wider economy. What’s more, flexi hire means you can roll over your hire contract indefinitely, allowing you to manage the current demands of your business and plan ahead financially without disrupting your day-to-day business operations.
It’s the perfect way to secure additional vehicles to expand your fleet without making any long-term commitments, which could be risky in the current economical and political climate. There are all sorts of other additional benefits to flexi hire too - the administration can be sorted out in a matter of hours rather than weeks, and we even take care of all the maintenance of your fleet.
You can find out more here about the various advantages of flexi hire, or take a look at the flexi car hire services we offer. Alternatively, if you’ve still got questions, our friendly members of staff are only too happy to help. Feel free to give us a call on 01254 544444, or pay us a visit at the Canal Wharf in Blackburn. We’re always happy to see you!