There is a huge amount of negativity surrounding Brexit negotiations and rightly so. Trade, travel and security issues remain unresolved, particularly where the Irish border is concerned, and Cabinet members are resigning left, right and centre.
The confidence in our prime minister – Theresa May – seems lower than it’s ever been before. But she remains hopeful that her draft Brexit deal is the best option for the United Kingdom.
While that remains to be seen, I personally feel quite positive about the prospect of a British Exit from the EU.
As CEO of We Buy Cars Today, I am confident we will see a boom in the industry when Brexit is agreed. Why? Allow me to explain.
Leaving the EU won’t have an impact on people’s need or desire to change their cars because regardless of our economic position in the world, families grow, couple’s break-up and cars break-down.
That’s just life and everyone at some point will need a replacement.
As a nation that prioritises convenience, I’m afraid to say that Brexit could cause huge delays to dealerships importing vehicles from abroad. If the import process isn’t ironed out quickly, anyone wanting a new car could be waiting weeks for it to arrive.
That’s another reason why online car sales are booming. It’s quick and easy and you can peruse or purchase a new motor at your leisure.
Nice not new
There has been a steady decline in new car sales in recent years and in September 2018 alone, sales of new cars fell by a staggering 20%.
This is partly the result of car buyers changing their perceptions of the used car industry, which has become more transparent, trustworthy and offers serious value for money. Also, with finance now easier to secure than ever before, a low vehicle purchase price, makes the financial commitment more appealing and affordable.
Consumers have become disillusioned by brand new vehicles, which depreciate in value the minute you drive off the forecourt.
I think Brexit will fuel the UK’s desire to buy used cars and I don‘t necessarily mean old bangers. Consumers still want ‘nice’ cars, maybe just not ‘new’.
Four year trend
We perform instant car valuations and this has identified an increasing trend of cars being bought and sold that are four years old. Typically, with a car that age, the mileage is still fairly low, the car’s in good nick and you can sell it for a decent sum of money.
I suspect Brexit will further enforce this notion, as people delay buying new vehicles until they know how the UK sits economically.
If buying foreign motors, will parts become more expensive and how easy will they be to attain? These are just of the questions worrying consumers as we speak.
Whatever your view on Brexit, inevitably there will be negative implications for people and businesses across every sector.
I’m afraid to say that short-term, leaving the EU will be bad for car manufacturers and new car dealerships but the market should pick back up in a couple of years.
Whatever deal Theresa May eventually strikes, the used car industry will be just fine.
Thomas Delgado is the CEO of We Buy Cars Today.