Brexit: No deal is the worst possible scenario
The news was announced this week that leaving the EU without a tariff-free trade deal could see the price of vehicles go up “about 10%”, and the price of parts could rise “about 4.5%”.
Gerry Keaney, Chief Executive of the British Vehicle Rental and Leasing Industry (BVRLA) has warned us that a no deal Brexit will raise operator costs, and that Brexit is the most important factor affecting the rental and lease industry going forward into 2018.
He said, “Brexit covers all aspects of our business and it needs to be broken down. It’s very clear from a governmental perspective, that Brexit means Brexit, so we’re going to leave the single market.
“This makes it absolutely clear for us: we need a trade agreement, which actually gives us a tariff free environment. I think that’s critical for our members.”
Our Managing Director, Simon Hill, agrees with Gerry Keaney and has added:
“We had warned that the cost of Cars and parts as well as fuel would increase in the short and medium term, even with a deal, but no deal is the worst possible scenario. We expect that no deal will be far worse than this and the affects will last for longer.
“We don’t expect the currency to bounce back for at least 5 years.”
For more information on the impact that a no-deal Brexit may have on the industry, please click here.