Brexit and possible 10% surcharge

[trueblue_ips]

The 10% relates to possible tariffs if we leave without a deal. I really can’t see that happening, I reckon article 50 will either be extended another six months or a deal will pass at the 11th hour. Of course tariffs are only one factor. The £/€ exchange rate has devalued by around 20% since 2016 hence why a £28k GTI is now a £34k GTI. I also changed my car for March rather than September when it was due for the same reasons - plus with the mk8 coming along I didn’t want to be left with mk 7.5s in short supply or mk8’s with no early discounts (or not even available until 2020).

Back on the subject of 10% tariffs, the UK reserves the right not to apply them. There’s a risk the EU would not reciprocate on UK car exports (Honda/Nissan/JLR)  but it’s an option nonetheless.

I think that's right. We are free. Free to make our own choices. I suspect in a no deal scenario both sides would just agree no tariffs. Again, we have a trade deficit with the EU.
There are so many other factors a play anyway.
I can't afford a new car so am looking at a 17 plate 7.5 GTI. EU WLTP BS has screwed the second hand market.

The EU is destroying the car industry.

[mkviken]

PCP screwed the used car market.

[dubber36]

Time to set up a firm bringing in grey imports. 20 years ago there were lots of them around when all the talk was about the price differential between here the mainland. But as with the used car market, PCPs have buggered that too. If you can get cheap monthlies, it doesn't matter to most what the sticker price is, as long as it doesn't go over £40k. There will no doubt be finance incentives to keep people buying. It's also a crafty way around getting more people into new 'rented' cars and getting older cars to the tip. I might as well scrap my Mk2 now.

[kmpowell]

It’s true. A couple of weeks ago my friend ordered a new Porsche, and on completion of his order the dealer provided a formal letter to say that in event of a ‘no deal’ brexit he had agreed the car price will go up by 10% to cover the new imposed import taxes. It outlined both cost totals and broke down where the 10% would be applied.

So his £66k car might be £73k.

[Mutley75]

It’s true. A couple of weeks ago my friend ordered a new Porsche, and on completion of his order the dealer provided a formal letter to say that in event of a ‘no deal’ brexit he had agreed the car price will go up by 10% to cover the new imposed import taxes. It outlined both cost totals and broke down where the 10% would be applied.

So his £66k car might be £73k.

I suspect someone who can afford £66k on a car is unlikely to be put off by it costing £73k though. When you’re adding ten percent further down the pecking order, people will just walk and buy alternatives. VW and the German government will only tolerate that for so long. In the end, money talks. Something will be sorted out.

[dubber36]

The reason someone has £66k to spend on a car is because he's been careful and not spent any more than he's needed to. That extra £7k, is still £7k whether it's on top of a £66k car, or a £660k car. So it's no really a case of been able to afford the extra, so it won't matter

[Bullfinch]

I solved my problem today.  As well as brand new I was happy to look at 68 reg low mileage vehicles.  Turns out one dealer pre-registered a GTI in Dec 18 with the exact spec I want (Indium Grey, leather, 19" Brescias and dynaudio) and it's done 36 miles!  It's one of the early MY19 vehicles which means I avoid the keyless start gimmick (theft risk) so happy with that too.  Picking up this coming Sunday.  I run mine on a private plate so just need to do sort out all the V5 plate transfer stuff etc. 

[Guzzle]

I solved my problem today.  As well as brand new I was happy to look at 68 reg low mileage vehicles.  Turns out one dealer pre-registered a GTI in Dec 18 with the exact spec I want (Indium Grey, leather, 19" Brescias and dynaudio) and it's done 36 miles!  It's one of the early MY19 vehicles which means I avoid the keyless start gimmick (theft risk) so happy with that too.  Picking up this coming Sunday.  I run mine on a private plate so just need to do sort out all the V5 plate transfer stuff etc.

Result!

Hopefully you got a great deal.

[fredgroves]

When you’re adding ten percent further down the pecking order, people will just walk and buy alternatives. VW and the German government will only tolerate that for so long. In the end, money talks. Something will be sorted out.

Alternatives like what?

British Leyland went out of business a while ago I seem to remember...

[Mutley75]

Ha yes. I did another thread on what people would buy if we couldn’t have an EU car. The alternatives (in the same price range) were pretty uninspiring.

Fear not, however. Brexit will be postponed. And then MPs will veto ‘no deal’. Leaving us with May’s deal that both Leavers and Remainers loathe in equal measure or ... staying in the EU. It’s the Hotel California. You can check out, but you can never leave.