CarWow launches Brexit price tool
British car buyers could face much higher costs for new cars after Brexit. CarWow has unveiled a new tool that estimates the extra cost of a new car per manufacturer.
The Brexit prediction tool shows British motorists an estimate of how much extra they’ll have to pay post-Brexit. It estimates the average price change for each manufacturer if there’s no deal.
It highlights the problems that a no deal Brexit could potentially cause for British buyers. Car manufacturers could face tariffs for exporting cars out of the UK. UK buyers will have to pay extra to import cars.
The UK has signed a ‘mutual recognition deal’ with Australia. This replicates all aspects of the current EU agreements when it comes to recognising product standards but doesn’t clarify what the impact of tariffs will be.
The most likely scenario is Britain will have to negotiate arrangements for continuity in trade with Australia to replicate existing European Union free trade agreements or operate under World Trade Organisation (WTO) arrangements until a deal is finalised.
The UK car industry has been rocked in recent weeks by Honda and Nissan announcing plans to move production elsewhere. They say their decisions are not necessarily because of Brexit, but their plans will alter the shape of the global market post-Brexit.
CarWow says its tool uses industry data to estimate the extra costs of a new car per manufacturer.
It surveyed 2,000 people and found 74 percent think prices will rise by up to AUD$5,576.
But luxury brands could see a dramatic increase with new BMW’s predicted to rise by $16,449 and Audi’s by $15,124.
“The prices being put on new models in the aftermath of Brexit varies wildly, which is why we have tried to give motorists some clarity with our price prediction tool,” said Alex Rose, Trading and Supply Operations Director at CarWow.
The Society of Motor Manufacturers and Traders has warned that unless access to the single market can be guaranteed in Brexit negotiations, carmakers face an export tariff of 10 percent.
The tool uses research and data from a range of global sources including Deloitte, Porsche and Ford and motor trade publications including Fleetworld and Autotrader.
The price changes are calculated by taking the average recommended retail price per brand and applying an uplift based on insight from a range of industry sources.
Price changes will vary between models depending on where they are built, each manufacturers commercial strategy and the impact of tariffs which are not yet confirmed.
Ben Salisbury is an experienced journalist and has covered the automotive sector for Yahoo! and also writes about the business of selling cars covering the rise of the online marketplace.