classic-car-news

Classic Car news

UK Car Leasing Costs Increase By 9% Due To Brexit

uk-car-leasing-increasing-brexit.jpg

Brexit has affected the UK car industry in a variety of ways, and the latest news is tied into the price of leasing a new car going up. According to research carried out by accountancy firm UHY Hacker Young, the price has increased by 9% in the space of a year. The monthly cost of leasing a car jumped from an average of £232 in February 2017 to £253 in February 2018.

The increase is due to the weakened pound pushing import costs up for car manufacturers, with the expense being transferred to customers. Another factor is the growth of sales in European markets, meaning less business is being done in the UK. Also, contract hire providers are likely to be increasing the cost of leases to compensate for the drop they expect in the residual value of diesel cars.

Paul Daly, partner at UHY Hacker Young, said “UK car buyers have benefitted from a period of deep discounting, but that seems to be coming to an end. There are still some great discounts around, particularly for vehicles financed under PCP (Personal Contract Plan) arrangements and now could well be a good time for consumers to change their vehicles before prices rise further.”

“Long-term Sterling weakness means manufacturers are having to shift their rising supply chain costs on to consumers. Strengthening European car sales have also meant that the UK market is having to soak up much less excess stock from mainland Europe, which is also starting to drive up prices here. That is particularly true for prestige German car – the days of leasing an Audi A3 for less than a Vauxhall Astra appears to be over for now.”

The three biggest rises in monthly costs were for German-made cars: the Mini Cooper D (31%), Audi A3 (23%) and Mercedes-Benz C220 (19%).

With the price of leasing cars going up, it points to a consistent picture of Brexit continuing to change the car industry on a regular basis. This can be seen in Jaguar Land Rover cutting 1000 jobs on the 13th April 2018, blaming the decision on Brexit and the drop in popularity of diesel vehicles. Only time will tell what happens next.

Classic Car Insurance»

Classic Car News, Inside Classics

You also may be
interested in...

Classic Car News

Can you drive a motorhome on a car licence?

Before you take the plunge and buy a motorhome, it’s probably worth checking if you’re actually eligible to drive one on your current driving licence.  For the most part, the year you passed your driving test determines whether or not you’re legally...

Read more Classic Car News, Inside Classics

Keep up to date with our news & blogs

Bike News

Top five… things to look out for at the 2024 Isle of Man TT races

This month sees the 2024 Isle of Man TT Races roar into action. Here are the big stories we can’t wait to follow…

Read more Bike News, Inside Bikes, TT News
Bike News

National Motorcyclists Council launches General Election manifesto

Riders urged to contact election candidates to put forward case for bikes

Read more Bike News, Inside Bikes
Bike News

Ducati honour Ayrton Senna with £23,500 Monster

Just 341 tributes to the Formula 1 legend will be made

Read more Bike News, Inside Bikes

Have some questions? Check out our tips & guides pages for some great information

Motorbike Reviews

Reviewed: KTM Duke 125

KTM’s little hooligan gets a major overhaul for 2024, but can a learner legal motorcycle really be that tough?

Read more Bike Reviews
Motorbike Reviews

Reviewed: Ducati Scrambler Nightshift

Ducati makes some sweet sounds with the Nightshift

Read more Bike Reviews
Motorbike Reviews

Reviewed: Harley-Davidson Nightster

Harley’s entry-level model is a modern take on the classic Sportster, but is it too much for the traditionalist?

Read more Bike Reviews