Plans are in place for the UK to leave the European Union on 31st October 2019, and a Hard Brexit deal is predicted to pose a number of economic challenges while Britain aims to negotiate and secure free trade deals outside of the Single Market. In the past year, the car industry has already begun to experience the effects of Brexit, as an increasing number of consumers are growing wary of making large-scale purchases. Understanding the impact Brexit will have on the car industry and car finance will allow you to make a safe and manageable investment during uncertain times.
One of the most widespread fears concerning a post-Brexit economy is the rising cost of imported goods, and the difficulties of safeguarding against economic stress as the pound weakens against other major currencies. Worries over a second recession are heavily influencing our fears over large, upfront purchases, and the car industry is no exception to these fears; the Society of Motor Manufacturers and Traders noted that 2018 saw new car sales drop by 4.1% – the weakest since 2012.
Similarly, it has also been predicted that 2019 will see Britain manufacturing just 1.3 million cars, which will be the lowest since 2011. Interruptions in supply chains, and tariffs imposed by the World Trade Organisation, are predicted to cause further problems for the car industry. And although it’s impossible to predict precisely what will happen when Britain makes its formal exit from the European Union, Glass’s Guide financial director Rupert Pontin predicts “a period of instability for new and used car sales”.
But, in a country where over 77% of households have at least one car, and so many of us rely on driving every day, car finance is becoming more important than ever. Large, upfront payments carry a much greater risk at a time of such financial uncertainty, and a growing number of consumers are turning away from expensive purchase in favour of securing cheap car finance deals which ensure manageable repayment plans suited to their budgets.
No one can be certain about what economic challenges the country will face in the months following Britain’s exit from the EU, but it is clear that the risks and uncertainties associated with single, bulk payments are perhaps higher than ever. For this reason, Brexit means even more car buyers are likely to be choosing to buy a car through a flexible finance deal which requires only a low, monthly payment suited to their financial requirements.
We have over ten years combined experience in this area, and are able to help you find a secure and realistic deal from our extensive database of lenders and dealerships – and even if you have bad credit, you may still be guaranteed car finance. We are passionate about supporting and advising our customers through their search for trustworthy car finance deals, and in securing a realistic repayment plan – quickly and simply.
No matter what Brexit brings, Car Finance Giant will be here to help.