Brexit tax: new car prices could leap by 22 percent

Brexit EU tax new cars

Independent car buying website Carwow has developed a tool to predict Brexit price rises for individual car manufacturers.

On average, it says, new car prices will rise by £8,000 if no deal is reached between Britain and the EU.

That doesn’t mean that middling Ford Fiesta is going to leap from £16,000 to £24,000, of course. The £8,000 figure mostly refers to premium models, which will be the most affected by the EU exit

Premium jumps

Brexit EU tax new cars

After March 29th, cars from marques such as Volvo, BMW, Mercedes-Benz, Alfa Romeo, Volkswagen, Fiat and Audi could be around 22 percent more expensive. 

For a Maserati that costs £67,000 at present, a £14,000 increase is on the cards. And the Alpine A110 is expected to jump by £10,000.

The news follows many marques from the Volkswagen Group announcing potential 10 percent rises post-Brexit.

Budget brands ‘safe’

As for more affordable cars, there’s better news. While there are rises predicted, cars from Nissan, Ford, Mini and Vauxhall will likely only increase by about three percent.

A typical new Ford is due to set you back an extra £727, according to the prediction tool. A new Mini is predicted to cost an extra £644, while a new Vauxhall will be £631 more.

Good Housekeeping Ford ecosport

The tool is a response to Carwow research that revealed only seven percent of Brits are prepared to pay more for a new car post-Brexit. On the plus side, there could be some superb deals over the next five weeks.

One thing is certain. If you’re in the market for a new car, your best bet is to buy now and make sure your delivery date is before 29 March. If not, buy straight off a forecourt. Uncertain times are ahead…