New car model prices could rise
Buying a used car may be a better deal than buying a brand new car. Sales of new cars are falling, but the used car industry is still stable. With the uncertainty around Brexit, there is increased pressure on car manufacturers, with the result that buyers are putting plans to buy new cars on hold.
Experts predict that prices of new models after Brexit will rise, partly due to the weaker pound as well as other contributing factors. Some hi-tech goods such as computers have already increased, and it’s estimated that the price of cars will follow suit.
Any rise in trade tariffs with Europe may also result in an increase in imported models like BMWs and Mercedes. Therefore, it’s predicted that prospective car buyers will turn to the second-hand market. New car sales may also be affected by an increase in costs for finance, which will have a knock-on effect on the affordability of newer, more expensive models. Secondhand models will be more affordable and more attractive.
Cost of insurance may fall
It’s believed the cost of insurance may come down, as brokers do not have to comply with some of the EU rules. Car buyers seeking a competitive motor trade insurance quotation are visiting sites such as https://www.quotemetoday.co.uk/motor-trade-insurance/.
According to Coventry Live, jobs at Jaguar Land Rover depend on MPs backing a Brexit deal – that’s according to West Midlands Mayor, Andy Street.
In the second quarter of 2018, over two million used cars were sold in the UK. That figure only dropped by around 0.4 per cent, despite a recent rise in interest rates. There are advantages to buying used cars, the obvious one being the lower cost.
There is also the hanging uncertainty over whether diesel, petrol or electric cars should be the buyer’s next choice. Given that there is a drive towards greener transport, electric cars remain more expensive than others. Brexit may affect this, as it’s not clear whether there will be encouragement in legislation to promote electric cars.
The most popular car brand remains Ford, followed by the Vauxhall Corsa, Volkswagen Golf and Vauxhall Astra. It has also been suggested that smaller cars are preferable, as they can reduce insurance costs.