Brexit has been a hot topic ever since the UK voted to leave the European Union in June 2016. Its influence has been seen far and wide ever since, but now new data highlights its particular impact on UK car pricing.
Rising costs could impact choice
According to UK automotive consumer website Parkers, the cost of securing vehicle finance in the UK has risen by 49 per cent in the last two years. Meanwhile, the nation’s cheapest cars have seen the sharpest price rises overall.
Chris Lloyd, finance editor for Parkers, explained: “With more than 90 per cent of privately purchased cars being financed, potentially millions of drivers could be in for a shock when they come to replace their car.”
Indeed, he noted that due to the rapid rise in costs, when many come to refinance at the end of their current agreement, they may struggle to afford the same level of vehicle.
Many popular models have seen significant inflation in the last two years, with Parkers revealing the Fiat Panda, BMW 1 Series, Vauxhall Mokka X and Vauxhall Astra have been among the worst affected.
A main driver of this change has been the tumbling value of the pound in the wake of Brexit. Indeed, Parkers claimed this has left UK drivers out of pocket by as much as £98 per month, or £4,606 on average, over the course of a full PCP contract.
Jenny Smith, general manager for Tele-Gence, commented: “The cost of motoring in the UK is a major issue for many at present. However, with the formal process of Brexit still far from agreed, it remains to be seen whether further rises will leave car owners even further out of pocket in the months and years to come.”
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Posted on 26th February 2019
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