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Brexit

Will new cars be more expensive after 1 Jan 2021?

28 replies

SoTiredNeedHoliday · 17/11/2020 14:01

Will there be extra tariffs placed on them? I guess from anywhere in the world as we were being treated like Europe.

OP posts:
FishesaPlenty · 17/11/2020 14:50

Never mind tariffs, wait until the manufacturers are free to charge extra for RHD cars again.

SoTiredNeedHoliday · 17/11/2020 15:17

would they do that? There are loads of countries world wide that are RHS not just UK

OP posts:
ListeningQuietly · 17/11/2020 16:34

Cars will be more expensive because tariffs will be applied every time parts cross borders

No other country within 1500 miles of the UK drives on the left.
en.wikipedia.org/wiki/Left-_and_right-hand_traffic
No other LHD country has the same road safety spec as the UK

I suspect we'll end up with 2nd hand Japanese cars, same as the Sri Lankans and West Indians do Grin

FishesaPlenty · 17/11/2020 16:57

It's the manufacturers' control over prices which is the issue.

The reason RHD and LHD cars are (almost) the same price now is because the EU brought in rules to stop manufacturers from blocking (and/or inflating the cost of) sales of RHD cars through non-UK (EU) dealers.

Once they could legally source cars through EU dealers middle-men started selling brand new imported UK-spec cars much cheaper than the same car from a UK dealer, and with the same Europe-wide warranty. That undermined the UK dealer networks and manufacturers were forced to drop UK prices to just above EU prices, making it much less viable to import either privately or through a dealer.

Last year I could walk into a French dealer and order a UK spec RHD car at French prices. The manufacturers can't force the dealer to charge me any more than for a LHD drive car and the dealer gets the same discounts etc.

The rules are there to prevent discrimination against UK and ROI consumers, and they were quite effective. There's nothing in those rules which provide any protection for someone based in a third country though. The EU aren't going to insist any more that Mercedes doesn't block sales of cheap RHD cars from its NL dealer network to the UK - so they will block them. That leaves Mercedes (and every other manufacturer) free to set their UK prices much higher than the rest of Europe, as they did previously.

FishesaPlenty · 17/11/2020 16:59

No other country within 1500 miles of the UK drives on the left

Ireland?

ListeningQuietly · 17/11/2020 17:04

@FishesaPlenty

No other country within 1500 miles of the UK drives on the left

Ireland?

I'm a twonk. I was looking at the map on a small screen and had my brain switched off BUT The Irish car market is VERY tightly aligned with the UK and the land bridge www.bbc.co.uk/news/uk-northern-ireland-54967496 and the republic has a population half that of London .....
FishesaPlenty · 17/11/2020 17:13

It's not really a supply issue, it's a competition issue. We're currently protected from by the EU and without that protection we're a captive market for the manufacturers.

FishesaPlenty · 17/11/2020 17:14

'''currently protected from anti-competitive practices by the EU'''

JaJaDingDong · 17/11/2020 17:51

No other country within 1500 miles of the UK drives on the left.

Malta drives on the left.

JaJaDingDong · 17/11/2020 17:51

And Ireland

ListeningQuietly · 17/11/2020 18:29

JaJa
Malta is 1560 miles from the UK Wink
I checked

Username7521 · 17/11/2020 18:33

Approx 10% increase is what we should prepare for

Pyewhacket · 17/11/2020 19:11

The short answer : NO.

ListeningQuietly · 17/11/2020 20:23

The short answer : NO.
why do you say that ?

JaJaDingDong · 18/11/2020 00:00

@ListeningQuietly

JaJa Malta is 1560 miles from the UK Wink I checked
Blush
SoTiredNeedHoliday · 18/11/2020 08:33

Pyewhacket I'd love to hear more

OP posts:
Woahisme · 01/12/2020 21:51

@Pyewhacket

The short answer : NO.
And the long answer...?
PlanDeRaccordement · 01/12/2020 22:09

Yes they will. Prices will increase due to economic hits of Brexit and Covid making trade with EU more expensive and the £ being worth less versus the euro and dollar than it usually is.

Peregrina · 02/12/2020 09:35

Interestingly, it's mostly ex -British colonial territories which drive on the left, with the big exceptions being Indonesia and Japan - both island nations. Hong Kong still drives on the left.

I can remember when Sweden changed over to driving on the right.

Peregrina · 02/12/2020 09:37

So will there be a lot of trade with people nipping over to Ireland to buy a top of the range car? Could be a nice little earner for Irish car showrooms.

ReturntoSpamfritters · 02/12/2020 10:10

I thought cars were a lot more expensive in Ireland?

anniegun · 02/12/2020 10:20

The UK can choose not to apply tariffs to cars in the event of a no-deal. In reality it will probably apply the same tariffs as the EU place on on cars exported from the UK. However if the government really wanted to they could allow all imports to be tariff free.

Apileofballyhoo · 02/12/2020 10:26

@ReturntoSpamfritters

I thought cars were a lot more expensive in Ireland?
Because of internal tax rather than anything else.
BlackForestCake · 11/12/2020 20:17

@anniegun

The UK can choose not to apply tariffs to cars in the event of a no-deal. In reality it will probably apply the same tariffs as the EU place on on cars exported from the UK. However if the government really wanted to they could allow all imports to be tariff free.
No it can't. Not without also withdrawing from the WTO.
OchonAgusOchonO · 12/12/2020 21:24

@ListeningQuietly

Cars will be more expensive because tariffs will be applied every time parts cross borders

No other country within 1500 miles of the UK drives on the left.
en.wikipedia.org/wiki/Left-_and_right-hand_traffic
No other LHD country has the same road safety spec as the UK

I suspect we'll end up with 2nd hand Japanese cars, same as the Sri Lankans and West Indians do Grin

I think Ireland is closer than 1500 miles to the UK. It's millimetres away, in fact.