Car costs likely to increase £70 per personWith still lots of discussion regarding Brexit and no trade details finalised yet, we’re still left questioning what the impacts could be on the motoring industry.
According to a recent study if no trade deals is reached between the European Union and the UK it’s expected that annual car-servicing bills could jump up to £70 after Brexit.
Particular areas which are vulnerable to rise are repair and servicing. According to the report commissioned by the automotive trade association, the Society of Motor Manufactures and traders warned that these costs could increase by 10 per cent if tariffs and other barriers to trade are imposed.
Estimations from this research indicated that 2.5 to 4.5 per cent on World Trade Association tariff on imported car parts could potentially cost a typical car owner an extra £21 a year for replacement components.
However, it is likely to have other impacts such as regulatory barriers, customs delays and other possible consequences as a result of Brexit. This was calculated to cost an additional £49.
The United Kingdom’s automotive aftermarket sector is made up of many components. This includes distributors, retailers, workshops and parts makers. In total, this contributed an astonishing £12.5 billion to the economy last year alone, according to a report done by SMMT.
Mike Hawes, the organisations chief executive said that “This report shows just how vital the UK automotive aftermarket is to our society and economy. It supports hundreds of thousands of jobs and keeping vehicles safe and the country moving.
Our car maintenance sector is one of Europe’s most competitive, and motorists enjoy a great choice over where they have their car serviced.”
He is thus calling upon the government to prioritise an interim deal with the EU “that maintains single market and customs union membership until the right trade deal with the EU is implemented”.